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Revenue and profit within guidance as reportedA record-high second quarter $258M in cash flow from operations, $242M in adjusted free cash flow iX Suite deals up 400% year over year

NEWARK, Calif., June 29, 2026 (GLOBE NEWSWIRE) -- Concentrix Corporation (NASDAQ: CNXC), a global technology and services leader, today announced financial results for the fiscal second quarter ended May 31, 2026.

  Three Months Ended    May 31, 2026 May 31, 2025 ChangeRevenue($M) $2,462.5  $2,417.4  1.9%Operating income($M) $95.4  $148.3  (35.7)%Non-GAAP operating income($M) (1) $292.0  $303.7  (3.9)%Operating margin  3.9%  6.1% -220 bpsNon-GAAP operating margin (1)  11.9%  12.6% -70 bpsNet income($M) $55.3  $42.1  31.4%Non-GAAP net income($M) (1) $168.6  $179.6  (6.1)%Adjusted EBITDA($M) (1) $347.4  $357.3  (2.8)%Adjusted EBITDA margin (1)  14.1%  14.8% -70 bpsDiluted earnings per common share $0.86  $0.63  36.5%Non-GAAP diluted earnings per common share (1) $2.63  $2.70  (2.6)%(1) See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
Second Quarter Fiscal 2026 Highlights:

Revenue of $2,462.5 million, an increase of 1.9% year-on-year on an as reported basis compared to revenue of $2,417.4 million in the prior year second quarter. The Company grew revenue 0.6% year-on-year on a constant currency basis.Operating income of $95.4 million, or 3.9% of revenue, compared to $148.3 million, or 6.1% of revenue, in the prior year second quarter.Non-GAAP operating income of $292.0 million, or 11.9% of revenue, compared with $303.7 million, or 12.6% of revenue in the prior year second quarter.Adjusted EBITDA of $347.4 million, or 14.1% of revenue, compared with $357.3 million, or 14.8% of revenue in the prior year second quarter.Cash flow provided by operations was $257.9 million in the quarter. Adjusted free cash flow(1) was $242.3 million in the quarter.Diluted earnings per common share (“EPS”) was $0.86 compared to $0.63 in the prior year second quarter.Non-GAAP diluted EPS was $2.63 compared to $2.70 in the prior year second quarter. “Our second quarter marked an acceleration in many areas in the evolution of our business,” said Chris Caldwell, President and CEO of Concentrix. “Our blended AI and services approach is delivering value to clients by lowering their costs and increasing their revenue, helping us differentiate ourselves in the marketplace."

Quarterly Dividend and Share Repurchase Program:

The Company paid a $0.36 per share quarterly dividend on May 5, 2026. The Company’s Board of Directors has declared a quarterly dividend of $0.36 per share payable on August 4, 2026, to shareholders of record at the close of business on July 24, 2026.The Company did not repurchase any shares under its share repurchase program during the second quarter of fiscal year 2026. At May 31, 2026, the Company’s remaining share repurchase authorization was $396.6 million. Business Outlook:
The following statements are based on the Company’s current expectations for the third quarter and the full year fiscal 2026. Non-GAAP financial measures exclude the impact of acquisition-related, integration and restructuring expenses, amortization of intangible assets, depreciation, loss on held for sale, share-based compensation and the related tax effects thereon. The non-GAAP EPS guidance assumes no impact from changes in acquisition contingent consideration and foreign currency losses (gains), net included in other expense (income), net. These statements are forward-looking and actual results may differ materially.

Third Quarter Fiscal 2026 Expectations:

Third quarter reported revenue of $2.465 billion to $2.490 billion. Based on current exchange rates, these expectations assume an approximate 75-basis point negative impact of foreign exchange rates compared with the prior year period. The guidance implies constant currency revenue growth for the quarter ranging from 0.0% to 1.0%.Operating income of $121 million to $131 million and non-GAAP operating income of $295 million to $305 million.Non-GAAP diluted EPS of $2.65 to $2.77, assuming approximately 60.9 million diluted common shares outstanding and approximately 4.8% of net income attributable to participating securities.The effective tax rate is expected to be approximately 25%. Full Year 2026 Expectations:

Full year reported revenue of $9.925 billion to $10.025 billion. Based on current exchange rates, these expectations assume an approximate 75-basis point positive impact of foreign exchange rates compared with the prior year. The guidance implies constant currency revenue growth for the full year of 0.25% to 1.25%.Operating income of $509 million to $539 million and non-GAAP operating income of $1,200 million to $1,230 million.Non-GAAP diluted EPS of $10.83 to $11.18, assuming approximately 61.1 million diluted common shares outstanding and approximately 4.8% of net income attributable to participating securities.The effective tax rate is expected to be approximately 24.5%. In addition, the Company expects to generate approximately $630.0 million to $650.0 million of adjusted free cash flow in fiscal year 2026.

The Company believes that a quantitative reconciliation of the non-GAAP EPS outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to (a) the inability to forecast future changes in acquisition contingent consideration, which is based, in part, on the future trading price of the Company’s common stock, and (b) the inability to forecast future foreign currency losses (gains), net included in other expense (income), net. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results.

The Company believes that a quantitative reconciliation of the adjusted free cash flow outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to uncertainty related to the future changes in the Company’s factoring program and related timing of those changes. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results.

Conference Call and Webcast
The Company will host a conference call for investors to review its second quarter fiscal 2026 results today at 5:00 p.m. (ET)/2:00 p.m. (PT).

The live conference call webcast will be available in listen-only mode in the Investor Relations section of the Company’s website under “Events and Presentations” at https://ir.concentrix.com/events-and-presentations. A replay will also be available on the website following the conference call.

About Concentrix: Powering a World That Works
Concentrix Corporation (NASDAQ: CNXC), is the Fortune 500® technology and services company, helping the world's best brands create intelligent operations that perform in the real world. We design, build, and run integrated human and AI solutions, harnessing the insight from billions of real-world interactions to help 2,000+ of the world’s most complex organizations solve their toughest business challenges. Backed by 20+ years of operational experience and battle tested AI, we’re the intelligent transformation partner that helps clients across every major industry move from ambition to measurable, scalable performance. Virtually everywhere. To learn more, visit concentrix.com.

Use of Non-GAAP Information
In addition to disclosing financial results that are determined in accordance with GAAP, we also disclose certain non-GAAP financial information, including:

Constant currency revenue growth, which is revenue growth adjusted for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Constant currency revenue growth is calculated by translating the revenue of each fiscal year in the billing currency to U.S. dollars using the comparable prior year’s currency conversion rate in comparison to prior year’s revenue. Generally, when the U.S. dollar either strengthens or weakens against other currencies, revenue growth at constant currency rates or adjusting for currency will be higher or lower than revenue growth reported at actual exchange rates.Non-GAAP operating income, which is operating income, adjusted to exclude acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale and share-based compensation.Non-GAAP operating margin, which is non-GAAP operating income, as defined above, divided by revenue.Adjusted earnings before interest, taxes, depreciation, and amortization, or adjusted EBITDA, which is non-GAAP operating income, as defined above, plus depreciation (exclusive of step-up depreciation).Adjusted EBITDA margin, which is adjusted EBITDA, as defined above, divided by revenue.Non-GAAP net income, which is net income excluding the tax-effected impact of acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale, share-based compensation, certain debt costs, imputed interest related to the Sellers’ Note, certain legal settlement costs, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP net income also excludes the income tax effect of certain tax law changes.Free cash flow, which is cash flows from operating activities less capital expenditures, and adjusted free cash flow, which is free cash flow excluding the effect of changes in the outstanding factoring balance. We believe that free cash flow is a meaningful measure of cash flows since capital expenditures are a necessary component of ongoing operations. We believe that adjusted free cash flow is a meaningful measure of cash flows because it removes the effect of factoring which changes the timing of the receipt of cash for certain receivables. However, free cash flow and adjusted free cash flow have limitations because they do not represent the residual cash flow available for discretionary expenditures. For example, free cash flow and adjusted free cash flow do not incorporate payments for business acquisitions.Non-GAAP diluted EPS, which is diluted EPS excluding the per share, tax-effected impact of acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale, share-based compensation, certain debt costs, imputed interest related to the Sellers’ Note, certain legal settlement costs, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP EPS also excludes the per share income tax effect of certain tax law changes. Non-GAAP EPS also reflects a per share adjustment to exclude non-GAAP net income attributable to participating securities. We believe that providing this additional information is useful to the reader to better assess and understand our base operating performance, especially when comparing results with previous periods and for planning and forecasting in future periods, primarily because management typically monitors the business adjusted for these items in addition to GAAP results. Management also uses these non-GAAP measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. These non-GAAP financial measures exclude amortization of intangible assets. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to the services performed for our clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of our acquisition activity. Accordingly, we believe excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of our business nor reflect our underlying business performance, enhances our and our investors’ ability to compare our past financial performance with our current performance and to analyze underlying business performance and trends. These non-GAAP financial measures also exclude share-based compensation expense. Given the subjective assumptions and the variety of award types that companies can use when calculating share-based compensation expense, management believes this additional information allows investors to make additional comparisons between our operating results and those of our peers. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.

Safe Harbor Statement
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding the Company’s expected future financial condition, growth and profitability, results of operations, including revenue and operating income, cash flows, and effective tax rate, leverage and liquidity, capital expenditures and anticipated investment costs, the Company’s stock price and market capitalization, the future growth and success of, and demand for, the Company’s services and products, the potential benefits associated with use of the Company’s artificial intelligence (“AI”) solutions and other products, share repurchase and dividend activity, capital allocation, debt repayment and obligations, business strategy, product launches, foreign currency exchange rate fluctuations, and statements that include words such as believe, expect, intend, plan, may, will, anticipate, provide, could, should, target, estimate, outlook, and other similar expressions. These forward-looking statements are inherently uncertain and involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things: risks related to general economic and geopolitical conditions and their effects on our clients’ businesses and demand for our services, including consumer demand, interest rates, inflation, the price of oil and other petroleum-based products, international tariffs and global trade policies, supply chains, and the conflicts in the Middle East and Ukraine; cyberattacks on the Company’s or its clients’ networks and information technology systems; uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of AI, including agentic and generative AI; the failure of the Company’s staff and contractors to adhere to the Company’s and its clients’ controls and processes; the inability to protect personal and proprietary information; the effects of communicable diseases or other public health crises, natural disasters and adverse weather conditions; geopolitical, economic and climate- or weather-related risks in regions with a significant concentration of the Company’s operations; the ability to successfully execute the Company’s strategy; the timing and success of product launches; competitive conditions in the Company’s industry and consolidation of its competitors; variability in demand by the Company’s clients or the early termination of the Company’s client contracts; the level of business activity of the Company’s clients and the market acceptance and performance of their products and services; the demand for end-to-end solutions and technology; damage to the Company’s reputation through the actions or inactions of third parties; changes in law, regulations, or regulatory guidance, or changes in their interpretation or enforcement, including changes in law and policy that restrict offshoring or travel or visas between countries in which we have operations; the operability of the Company’s communication services and information technology systems and networks; the loss of key personnel or the inability to attract and retain staff across all geographies with the skills and expertise needed for the Company’s business; increases in the cost of labor, including minimum wage rates in the countries in which the Company operates; the inability to successfully identify, complete, and integrate strategic acquisitions or investments or realize anticipated benefits within the expected timeframe; higher than expected tax liabilities; currency exchange rate fluctuations; investigative or legal actions; and other factors contained in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2025 filed with the Securities and Exchange Commission (“SEC”) and subsequent documents filed with or furnished to the SEC. The Company does not undertake a duty to update forward-looking statements, which speak only as of the date on which they are made, except as required by law.

Copyright 2026 Concentrix Corporation. All rights reserved. Concentrix, the Concentrix logo, and all other Concentrix company, product, and services word and design marks and slogans are trademarks or registered trademarks of Concentrix Corporation and its subsidiaries. Other names and marks are the property of their respective owners.

From Fortune ©2026 Fortune Media (USA) Corporation. All rights reserved. Used under license. Fortune and Fortune 500 are registered trademarks of Fortune Media (USA) Corporation and are used under license. Fortune and Fortune Media (USA) Corporation are not affiliated with, and do not endorse products or services of, Concentrix.

Investor Contact:
Elise Brassell
Concentrix Corporation
[email protected]

CONCENTRIX CORPORATION
CONSOLIDATED BALANCE SHEETS
(currency and share amounts in thousands, except par value)  May 31, 2026 November 30, 2025  (unaudited)  ASSETS    Current assets:    Cash and cash equivalents $255,566  $327,347 Accounts receivable, net  1,987,978   1,999,021 Assets held for sale  202,738   — Other current assets  593,611   758,135 Total current assets  3,039,893   3,084,503 Property and equipment, net  709,829   735,550 Goodwill  3,653,490   3,671,746 Intangible assets, net  1,749,909   1,960,338 Deferred tax assets  343,201   317,453 Other assets  1,016,525   991,496 Total assets $10,512,847  $10,761,086      LIABILITIES AND STOCKHOLDERS’ EQUITY    Current liabilities:    Accounts payable $198,108  $244,771 Current portion of long-term debt  650,000   65,625 Accrued compensation and benefits  658,057   764,962 Other accrued liabilities  815,876   997,198 Income taxes payable  85,078   123,794 Liabilities held for sale  172,259   — Total current liabilities  2,579,378   2,196,350 Long-term debt, net  3,934,874   4,572,889 Other long-term liabilities  1,011,706   950,983 Deferred tax liabilities  285,603   296,519 Total liabilities  7,811,561   8,016,741 Stockholders’ equity:    Preferred stock, $0.0001 par value, 10,000 shares authorized and no shares issued and outstanding as of May 31, 2026 and November 30, 2025, respectively  —   — Common stock, $0.0001 par value, 250,000 shares authorized; 70,591 and 70,316 shares issued as of May 31, 2026 and November 30, 2025, respectively, and 60,863 and 61,739 shares outstanding as of May 31, 2026 and November 30, 2025, respectively  7   7 Additional paid-in capital  3,838,082   3,783,972 Treasury stock, 9,728 and 8,577 shares as of May 31, 2026 and November 30, 2025, respectively  (657,340)  (610,162)Retained deficit  (146,518)  (177,010)Accumulated other comprehensive loss  (332,945)  (252,462)Total stockholders’ equity  2,701,286   2,744,345 Total liabilities and stockholders’ equity $10,512,847  $10,761,086  CONCENTRIX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(currency and share amounts in thousands, except per share amounts)
(unaudited)  Three Months Ended
   Six Months Ended
    May 31, 2026 May 31, 2025
 % Change May 31, 2026 May 31, 2025
 % ChangeRevenue              Technology and consumer electronics $624,244  $662,719  (6)% $1,259,333  $1,320,411  (5)%Retail, travel and e-commerce  640,795   583,782  10%  1,290,158   1,167,680  10%Communications and media  392,255   392,963  —%  786,271   763,963  3%Banking, financial services and insurance  432,388   384,015  13%  853,993   749,208  14%Healthcare  151,869   176,386  (14)%  330,699   366,191  (10)%Other  220,922   217,506  2%  442,410   422,140  5%Total revenue $2,462,473  $2,417,371  2% $4,962,864  $4,789,593  4%Cost of revenue  1,639,124   1,569,223  4%  3,289,858   3,085,546  7%Gross profit  823,349   848,148  (3)%  1,673,006   1,704,047  (2)%Selling, general and administrative expenses  727,928   699,803  4%  1,459,026   1,386,835  5%Operating income  95,421   148,345  (36)%  213,980   317,212  (33)%Interest expense and finance charges, net  68,074   75,406  (10)%  143,391   148,400  (3)%Other expense (income), net  (42,128)  21,218  (299)%  (27,617)  16,299  (269)%Income before income taxes  69,475   51,721  34%  98,206   152,513  (36)%Provision for income taxes  14,199   9,628  47%  21,341   40,163  (47)%Net income $55,276  $42,093  31% $76,865  $112,350  (32)%               Earnings per common share:              Basic $0.86  $0.63    $1.20  $1.68   Diluted $0.86  $0.63    $1.20  $1.68   Weighted-average common shares outstanding:              Basic  60,850   63,355     61,062   63,693   Diluted  60,862   63,406     61,078   63,733    CONCENTRIX CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(currency and share amounts in thousands, except per share amounts)
(unaudited)  Three Months Ended Six Months Ended  May 31, 2026 May 31, 2026Revenue $2,462,473  $4,962,864 Revenue growth, as reported under U.S. GAAP  1.9%  3.6%Foreign exchange impact  (1.3)%  (2.3)%Constant currency revenue growth  0.6%  1.3%   Three Months Ended
 Six Months Ended
  May 31, 2026
 May 31, 2025
 May 31, 2026
 May 31, 2025
Operating income $95,421  $148,345  $213,980  $317,212 Acquisition-related, integration and restructuring expenses (1)  65,505   16,808   100,374   34,832 Step-up depreciation  2,701   2,536   5,456   4,912 Amortization of intangibles  102,057   109,158   205,513   214,777 Loss on held for sale  963   —   6,892   — Share-based compensation  25,367   26,862   54,822   53,462 Non-GAAP operating income $292,014  $303,709  $587,037  $625,195    Three Months Ended
 Six Months Ended
  May 31, 2026 May 31, 2025
 May 31, 2026 May 31, 2025
Net income $55,276  $42,093  $76,865  $112,350 Interest expense and finance charges, net  68,074   75,406   143,391   148,400 Provision for income taxes  14,199   9,628   21,341   40,163 Other expense (income), net  (42,128)  21,218   (27,617)  16,299 Acquisition-related, integration and restructuring expenses (1)  65,505   16,808   100,374   34,832 Step-up depreciation  2,701   2,536   5,456   4,912 Amortization of intangibles  102,057   109,158   205,513   214,777 Loss on held for sale  963   —   6,892   — Share-based compensation  25,367   26,862   54,822   53,462 Depreciation (exclusive of step-up depreciation)  55,361   53,615   108,519   106,336 Adjusted EBITDA $347,375  $357,324  $695,556  $731,531    Three Months Ended Six Months Ended  May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025Operating margin 3.9% 6.1% 4.3% 6.6%Non-GAAP operating margin 11.9% 12.6% 11.8% 13.1%Adjusted EBITDA margin 14.1% 14.8% 14.0% 15.3%   Three Months Ended Six Months Ended  May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025Net income $55,276  $42,093  $76,865  $112,350 Acquisition-related, integration and restructuring expenses (1)  65,505   16,808   100,374   34,832 Step-up depreciation  2,701   2,536   5,456   4,912 Debt costs (2)  —   1,102   6,268   1,102 Imputed interest related to Sellers’ Note included in interest expense and finance charges, net  —   4,503   —   8,689 Legal settlement costs (3)  —   2,000   —   2,000 Change in acquisition contingent consideration included in other expense (income), net  (529)  8,691   (945)  6,667 Foreign currency losses (gains), net (4)  (44,965)  10,789   (32,659)  6,610 Amortization of intangibles  102,057   109,158   205,513   214,777 Loss on held for sale  963   —   6,892   — Share-based compensation  25,367   26,862   54,822   53,462 Income taxes related to the above (5)  (37,805)  (44,931)  (85,862)  (81,923)Income tax effect of change in tax law  —   —   —   4,269 Non-GAAP net income $168,570  $179,611  $336,724  $367,747    Three Months Ended Six Months Ended  May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025Net income $55,276  $42,093  $76,865  $112,350 Less: net income allocated to participating securities (6)  (2,745)  (2,035)  (3,869)  (5,448)Net income attributable to common stockholders $52,531  $40,058  $72,996  $106,902    Three Months Ended Six Months Ended  May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025Non-GAAP net income $168,570  $179,611  $336,724  $367,747 Less: Non-GAAP net income allocated to participating securities (7)  (8,371)  (8,685)  (16,949)  (17,831)Non-GAAP income attributable to common stockholders $160,199  $170,926  $319,775  $349,916    Three Months Ended Six Months Ended  May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025Diluted earnings per common share (“EPS”) (6) $0.86  $0.63  $1.20  $1.68 Acquisition-related, integration and restructuring expenses  1.08   0.27   1.64   0.55 Step-up depreciation  0.04   0.04   0.09   0.08 Debt costs (2)  —   0.02   0.10   0.02 Imputed interest related to Sellers’ Note included in interest expense and finance charges, net  —   0.07   —   0.14 Legal settlement costs (3)  —   0.03   —   0.03 Change in acquisition contingent consideration included in other expense (income), net  (0.01)  0.14   (0.02)  0.10 Foreign currency losses (gains), net (4)  (0.74)  0.17   (0.53)  0.10 Amortization of intangibles  1.68   1.72   3.36   3.37 Loss on held for sale  0.02   —   0.11   — Share-based compensation  0.42   0.42   0.90   0.84 Income taxes related to the above (5)  (0.62)  (0.71)  (1.41)  (1.29)Income tax effect of change in tax law  —   —   —   0.07 Adjustment for participating securities (7)  (0.10)  (0.10)  (0.20)  (0.20)Non-GAAP Diluted EPS (7) $2.63  $2.70  $5.24  $5.49          Weighted-average number of common shares - diluted  60,862   63,406   61,078   63,733    Three Months Ended Six Months Ended  May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025Net cash provided by operating activities $257,891  $236,536  $174,671  $237,944 Purchases of property and equipment  (48,174)  (55,792)  (102,076)  (106,410)Free cash flow  209,717   180,744   72,595   131,534 Change in outstanding factoring balances  32,607   19,542   25,116   28,936 Adjusted free cash flow $242,324  $200,286  $97,711  $160,470    Forecast  Three Months Ending
August 31, 2026 Fiscal Year Ending
November 30, 2026  Low High Low HighRevenue $2,465,000  $2,490,000  $9,925,000  $10,025,000 Revenue growth, as reported under U.S. GAAP  (0.75)%  0.25%  1.00%  2.00%Foreign exchange impact  0.75%  0.75%  (0.75)%  (0.75)%Constant currency revenue growth  0.0%  1.0%  0.25%  1.25%   Forecast
  Three Months Ending
August 31, 2026
 Fiscal Year Ending
November 30, 2026
  Low
 High
 Low
 High
Operating income $120,900  $130,900  $508,808  $538,808 Amortization of intangibles  102,500   102,500   395,000   395,000 Share-based compensation  23,800   23,800   105,000   105,000 Acquisition-related, integration and restructuring expenses  45,000   45,000   175,000   175,000 Step-up depreciation  2,800   2,800   9,300   9,300 Loss on held for sale  —   —   6,892   6,892 Non-GAAP operating income $295,000  $305,000  $1,200,000  $1,230,000 
(1) For the three and six months ended May 31, 2026, acquisition-related, integration and restructuring expenses primarily included restructuring costs associated with our recent cost reduction initiatives, including severance and employee-related costs. Restructuring expenses also included costs associated with facilities consolidation, including lease terminations. For the three and six months ended May 31, 2025, acquisition-related, integration and restructuring costs primarily included integration costs associated with our combination with Webhelp and restructuring expenses. These costs primarily included severance and employee-related costs, costs associated with facilities consolidation, including lease terminations to integrate the businesses, and information technology system consolidation costs.

(2) For the six months ended May 31, 2026, debt costs included debt extinguishment costs associated with our early redemption of $600 million of our senior notes due in August 2026. For the three and six months ended May 31, 2025, debt costs included debt extinguishment costs associated with our restated credit agreement and our voluntary prepayment of a portion of our outstanding term loans.

(3) For the three and six months ended May 31, 2025, legal settlement costs consist of amounts incurred to settle certain litigation arising outside of the ordinary course of business.

(4) Foreign currency losses (gains), net are included in other expense (income), net and primarily consist of gains and losses recognized on the revaluation and settlement of foreign currency transactions and realized and unrealized gains and losses on derivative contracts that do not qualify for hedge accounting.

(5) The tax effect of taxable and deductible non-GAAP adjustments was calculated using the tax-deductible portion of the expenses and applying the entity-specific, statutory tax rates applicable to each item during the respective periods presented.

(6) Diluted EPS is calculated using the two-class method, which is an earnings allocation proportional to the respective ownership among holders of common stock and participating securities. Restricted stock awards and certain restricted stock units granted to employees are considered participating securities. For the purposes of calculating diluted EPS, net income attributable to participating securities was approximately 5.0% and 4.8% of net income, respectively, for the three months ended May 31, 2026 and 2025 and 5.0% and 4.8% of net income, respectively, for the six months ended May 31, 2026 and 2025.

(7) For the purposes of calculating non-GAAP net income attributable to common shareholders and non-GAAP diluted EPS, non-GAAP net income attributable to participating securities was approximately 5.0% and 4.8% of non-GAAP net income, respectively, for the three months ended May 31, 2026 and 2025, and 5.0% and 4.8% of non-GAAP net income, respectively, for the six months ended May 31, 2026 and 2025, and was excluded from non-GAAP net income attributable to common shareholders to calculate non-GAAP diluted EPS.

Key Takeaways Argan posted record results, with backlog up 49.1% and revenues rising 50% in fiscal Q1 2027.AGX benefits from power demand trends, while PRIM targets grid, gas and utility infrastructure growth.PRIM faces softer near-term execution and estimate cuts, while AGX earnings estimates moved higher. The rise in United States energy infrastructure spending is one of the strongest secular themes in the industrial sector, and companies like Argan, Inc. (AGX - Free Report) and Primoris Services Corporation (PRIM - Free Report) are well-positioned to benefit. The key point is that the US needs not only more electricity generation but also more infrastructure to produce, transport and deliver that power reliably.

Argan is a Virginia-based engineering and construction company, focused primarily on the power and industrial infrastructure markets. Primoris Services is a Texas-based specialty infrastructure contractor that provides engineering, construction, maintenance and replacement services for critical infrastructure projects across the United States and Canada.

Let’s closely compare the fundamentals of the two energy infrastructure stocks to determine which one is a better investment now.

The Case for Argan StockArgan is benefiting from powerful long-term energy infrastructure trends driven by data center expansion, manufacturing reshoring, electrification and growing electricity demand. Its expertise in large-scale natural gas and renewable power projects positions it well to capitalize on this opportunity. Despite normal project timing fluctuations, backlog remained exceptionally strong at approximately $2.77 billion as of the first-quarter fiscal 2027, which was up 49.1% year over year from $1.86 billion, supported by multiple large gas-fired projects and industrial contracts. Management expects to add several new projects over the next 10-18 months, providing visibility into future revenue growth and reinforcing confidence in sustained business momentum.

Besides, Argan delivered record first-quarter fiscal 2027 results, with revenues surging 50% year over year to $291 million. Gross margin expanded 200 basis points (bps) to 21%, while earnings per share (EPS) grew 102.5% to $3.24 year over year. Strong project execution, favorable contract mix and ahead-of-schedule completion of key projects supported profitability. Growth across all operating segments demonstrates broad-based demand and strengthens confidence in the company’s earnings trajectory.

AGX expects combined-cycle natural gas facilities to remain the dominant contributor to backlog while maintaining renewable capabilities to capture future opportunities. Expansion of industrial fabrication capacity, growing data-center-related demand and the company’s ability to execute 10-12 projects simultaneously further enhance its competitive position.

Notably, management follows a disciplined capital allocation strategy focused first on organic growth investments, including workforce expansion and fabrication capacity additions, followed by a growing dividend, opportunistic share repurchases and selective acquisitions. Argan ended the first quarter of fiscal 2027 with $973.6 million in cash, cash equivalents and investments, net liquidity of $421.4 million and no debt. Strong operating cash flow, customer prepayments, project advances and investment income continue to support liquidity. During the fiscal quarter ended April 30, 2026, Argan repurchased shares worth $3 million and paid dividends of $7 million.

Management follows a disciplined capital allocation strategy focused first on organic growth investments, including workforce expansion and fabrication capacity additions, followed by a growing dividend, opportunistic share repurchases and selective acquisitions. This balanced approach supports long-term growth while consistently returning capital to shareholders.

The Case for Primoris Services StockPrimoris Services remains well-positioned to capitalize on accelerating U.S. investment in power generation, grid modernization, natural gas infrastructure, pipelines and data centers. Management highlighted strong bidding activity across natural gas generation, renewables and pipeline projects, while Utilities continues to benefit from rising power delivery demand as customers expand grid reliability and capacity. Although total backlog moderated sequentially to $11.6 billion due to award timing, Utilities backlog climbed to a record $6.9 billion, supported by a 7.2% increase in recurring MSA backlog to $7.5 billion.

During the first quarter of 2026, the Utilities segment posted 12.3% year-over-year revenue growth, while the gross margin expanded 60 basis points to 9.8%, driven by higher power delivery and gas operations activity. Management expects Utilities margins to improve further toward its 10-12% target range, while Energy margins should recover beginning in the second quarter of 2026 as new natural gas and renewable projects ramp and PayneCrest contributes.

Moreover, PRIM continues to maintain a disciplined capital allocation strategy focused on balancing organic investments, strategic acquisitions and shareholder returns. Following the PayneCrest acquisition, the company retained strong liquidity of approximately $676.5 million, with plans to invest in growth opportunities while remaining selective about acquisitions that meet strict financial return thresholds.

Despite favorable long-term industry trends, Primoris Services faces several near-term headwinds. First-quarter 2026 consolidated revenues declined 5.4% year over year as renewable energy activity slowed and project timing shifted, while the Energy segment experienced weaker profitability due to execution challenges on a few legacy renewable projects and delayed project starts. In addition, the company expects first-half 2026 results to remain softer than the second half, making its full-year 2026 guidance increasingly dependent on successful project execution, margin recovery and timely conversion of its strong bid pipeline into awarded work.

Moreover, integration risks related to the PayneCrest acquisition and continued exposure to project timing, labor availability and customer spending patterns also remain factors investors should monitor.

Stock Performance & ValuationAs witnessed from the chart below, in the past three months, Argan’s share price performance has significantly outperformed Primoris Services’ declining trend and the broader Construction sector.

Image Source: Zacks Investment Research

Considering valuation, over the last five years, Argan has been trading above Primoris Services on a forward 12-month price-to-earnings (P/E) ratio basis.

Image Source: Zacks Investment Research

Overall, from these technical indicators, it can be deduced that AGX stock offers an accelerating growth trend but with a premium valuation, while PRIM stock offers a declining trend with a discounted valuation.

Comparing EPS Estimate Trends: AGX vs. PRIMThe Zacks Consensus Estimate for AGX’s fiscal 2027 and fiscal 2028 earnings has moved upward over the past 30 days to $12.60 and $16.66 per share, respectively. The revised estimates for fiscal 2027 and fiscal 2028 imply year-over-year growth of 29.4% and 32.2%, respectively.

AGX's EPS Trend

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PRIM’s 2026 and 2027 earnings has trended downward over the past seven days to $2.75 and $5.26 per share, respectively. The revised estimates for 2026 imply a 51.1% year-over-year decline, while those for 2027 indicate 91.2% year-over-year growth.

PRIM's EPS Trend

Image Source: Zacks Investment Research

Return on Equity (ROE) of AGX & PRIM StocksArgan’s trailing 12-month ROE of 36.89% significantly exceeds Primoris Services’ average, underscoring its efficiency in generating shareholder returns.

Image Source: Zacks Investment Research

Investment Decision: Choosing AGX Stock Over PRIM Stock?Argan continues to execute exceptionally well, supported by broad-based growth across its power and industrial businesses. Rising demand for natural gas generation, renewable energy and data center infrastructure provides strong revenue visibility, while management expects additional project awards over the next 10-18 months. Earnings estimates for fiscal 2027 and 2028 continue to move higher, and its industry-leading 36.9% ROE reflects outstanding capital efficiency.

Meanwhile, Primoris Services also benefits from attractive infrastructure tailwinds, particularly in utilities and power delivery, with a record Utilities backlog and improving margin prospects. However, declining first-quarter revenues, execution challenges in legacy renewable projects, softer near-term guidance, acquisition integration risks and downward earnings estimate revisions temper the investment thesis.

Although Argan trades at a premium valuation, that premium appears justified by its superior execution, accelerating stock performance, stronger balance sheet and significantly better earnings trajectory. Its stronger fundamentals, positive estimate revisions, robust liquidity and favorable exposure to the expanding U.S. energy infrastructure cycle provide a more compelling risk-reward profile and greater upside potential than Primoris Services at the current stage.

Thus, with a Zacks Rank #1 (Strong Buy) compared with PRIM stock’s current Zacks Rank #5 (Strong Sell), AGX stock is clearly the better stock to buy now. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Harmony Biosciences is expanding pitolisant into idiopathic hypersomnia and rare disorders.HRMY is advancing Pitolisant GR and HD to improve dosing, tolerability and differentiation.HRMY is developing BP-205 and EPX-100 to broaden its neuroscience pipeline footprint. Harmony Biosciences Holdings, Inc. (HRMY - Free Report) is no longer only a Wakix revenue story. The company is using its sleep-wake franchise to fund a broader neuroscience strategy.

The central question is whether those emerging growth trends can turn pipeline investment into a more diversified business before competition and exclusivity risks pressure the core product.

Harmony Pushes Beyond One IndicationHarmony is working to extend pitolisant beyond its established narcolepsy base. Its late-stage clinical work includes idiopathic hypersomnia, Prader-Willi syndrome and myotonic dystrophy type 1.

That approach reflects a broader attempt to extract more value from an established mechanism across adjacent neurological settings. Rather than relying only on new patient starts in narcolepsy, HRMY is trying to build a wider clinical footprint around the same scientific foundation.

Why HRMY Is Chasing Better FormulationsPitolisant Gastro-Resistant and Pitolisant High-Dose are central to that lifecycle strategy. The gastro-resistant version is intended to allow patients to start at a therapeutic dose without titration, while potentially improving tolerability for patients prone to gastrointestinal symptoms.

The high-dose version targets a more differentiated label. Ongoing Phase III programs in narcolepsy and idiopathic hypersomnia are aimed at fatigue in narcolepsy and sleep inertia in idiopathic hypersomnia, with top-line data expected in 2027 and a target action date in 2028. For HRMY, formulation work is not just incremental. It is a way to defend the franchise and sharpen commercial positioning.

How Harmony Is Entering Orexin and Rare EpilepsyHarmony’s BP1.15205 program moves the company into orexin-2 receptor agonism, an emerging area in sleep-wake therapeutics. The candidate is being developed for narcolepsy and other potential indications, and Harmony has described BP-205 as a highly potent, selective orexin-2 receptor agonist with potential once-daily dosing.

The company is also moving deeper into rare epilepsy through EPX-100, or clemizole hydrochloride. EPX-100 is enrolling in two global Phase III registrational trials in Lennox-Gastaut syndrome and Dravet syndrome. Jazz Pharmaceuticals plc (JAZZ - Free Report) , which has exposure to rare sleep disorders and rare epilepsies, offers a useful comparison for how sleep and epilepsy franchises can sit within one neuroscience business.

Alkermes plc (ALKS - Free Report) , another neuroscience-focused peer, also highlights investor interest in central nervous system portfolios beyond single-product stories.

What Competition Means for HRMY’s FutureMore treatment development in narcolepsy and related disorders can help validate demand. A more active category may increase physician awareness, expand payer familiarity and reinforce the need for differentiated therapies.

The same trend also raises pressure. Multiple orexin-2 receptor agonists are moving toward approval or late-stage development, while Harmony’s BP-205 remains early. More choices could narrow the window for differentiation, increase payer scrutiny and make execution around access, positioning and persistence more important.

How Harmony’s Ratings Reflect These TrendsThe bottom line is that Harmony has credible growth trends, but the stock still needs proof that they can translate into broader revenue durability. Wakix remains the commercial engine, while pitolisant lifecycle programs, orexin science and rare epilepsy assets represent the next phase of the story.

HRMY carries a Zacks Rank #3 (Hold), which points to a more balanced short-term setup rather than a clear momentum call. Its Value Score of A and VGM Score of A suggest the stock screens well on valuation and combined style characteristics, while its Growth Score of B supports the view that fundamental expansion remains part of the case.

The Momentum Score of D tempers that message. Investors may need patience as the market waits for clearer evidence from Pitolisant GR, Pitolisant HD, BP-205 and EPX-100. The signals line up with a company investing into promising trends, but not yet with a stock that has fully earned a breakout narrative.

Critical minerals are crucial for modern technology. These materials are essential for everything from smartphones to clean energy systems to modern defense platforms. Research from The Motley Fool shows that China controls a significant share of the supply chain for mining and processing critical minerals, which could pose a national security threat due to supply disruptions or trade disputes.

Because of their importance, the U.S. is seeking to secure its supply of critical minerals and rare-earth elements, and MP Materials (MP +1.57%) is one company leading the way. Last year, the U.S. producer of rare-earth materials entered a historic deal with the government. For investors considering MP Materials, here are two reasons to buy the stock and one reason to sell.

Image source: Getty Images.

Reason No. 1 to buy: MP's Mountain Pass mine gives it a first-mover advantage MP Materials owns and operates the Mountain Pass mine in California, which is one of the world's richest rare-earth deposits and the only active rare-earth mine in the United States. The mine is a high-grade deposit with a total rare-earth element concentration of approximately 7% to 9%.

The company also leverages a vertically integrated business model, from upstream mining and raw material refining to downstream metallization and alloying. MP's processing capabilities enable it to produce large volumes of rare-earth oxide concentrate, as well as separated neodymium-praseodymium (NdPr) oxide and metal, which are essential raw materials for high-powered permanent magnets used in electric vehicle motors, military guidance systems, and artificial intelligence data centers.

With its mining operations and integrated business model, MP Materials has a first-mover advantage in the domestic "mine-to-magnet" supply chain.

Reason No. 2 to buy: MP has a historic deal with the U.S. government Last year, MP Materials entered into a landmark public-private partnership with the U.S. government. As part of the deal, the U.S. has become MP Materials' largest shareholder through a $400 million convertible preferred equity investment.

The deal includes a 10-year Price Protection Agreement (PPA) that establishes a guaranteed price floor of $110 per kilogram for the company's NdPr products produced at Mountain Pass. This price floor provides MP with predictable revenue while protecting it from predatory pricing strategies by state-subsidized foreign competitors who could flood the market with cheap material.

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Investors saw the effect of this arrangement first-hand in MP Materials' first-quarter earnings report, when its price protection agreement income boosted earnings by $42.3 million. In the quarter, MP achieved a record NdPr production of 917 metric tons, while sales increased 49% to $90.6 million. As a result, MP's adjusted EBITDA improved to $36.6 million, up from its $2.7 billion loss last year.

Reason to sell: Scaling up its domestic processing capabilities will take significant time and capital MP Materials has the infrastructure to mine and process critical minerals, but it must continue to expand to meet growing demand for domestically sourced materials. As part of this, the company will construct a "10X" rare-earth magnet manufacturing campus in Northlake, Texas. The 10X facility is designed to scale total production capacity to roughly 10,000 metric tons of finished NdFeB magnets annually, with commercial commissioning projected to commence in 2028.

MP Materials estimates that developing the 10X project will require roughly $1.25 billion. While the project is partially subsidized by government assistance, the company still has to borrow funds, and the capital intensity will likely strain cash flow during development. Any delays in the build-out could affect its projected growth. Not only that, but if trade relations with China materially improve, the need to develop domestically sourced critical minerals may be de-emphasized by regulators in the U.S.

In the months following MP Materials' deal with the U.S. government, the stock surged to $100 per share. However, enthusiasm for the stock has waned, and it is now 46% off its 52-week high. The stock is priced at around 54 times its projected 2027 earnings and could be vulnerable to any struggles in ramping up production or expanding margins.

Investors should be aware of the risks associated with owning MP Materials. That said, the company has a first-mover advantage in the domestic critical minerals space, and the agreement with the U.S. government provides it with a unique backstop that helps secure future revenue. If you're bullish on the build-out of the domestic mine-to-magnet supply chains, MP Materials is a top stock to own today.

Item 1 of 2 A man walks past an Apple iPhone hoarding on a street in Mumbai, India, June 29, 2026. REUTERS/Francis Mascarenhas

[1/2]A man walks past an Apple iPhone hoarding on a street in Mumbai, India, June 29, 2026. REUTERS/Francis Mascarenhas Purchase Licensing Rights, opens new tab

SummaryCompaniesApple counts Tata as key supplier as it diversifies beyond ChinaTata breach has seen files of Apple, Tesla posted on dark webApple has been investigating the matter, Reuters has reportedSupplier list, component names of iPhone 18 Pro in leakNEW DELHI/SAN FRANCISCO, June 29 (Reuters) - Sensitive lists of components and suppliers, ​and photos of Apple's upcoming iPhone 18 Pro models are part of files posted on the dark web by the ransomware group that stole ‌data from the U.S. firm's Indian supplier Tata Electronics, according to documents and a source.

The exposure threatens the carefully negotiated business of building the iPhone, which Apple assembles from a thicket of suppliers worldwide. It could also upset Apple and its relationship with Tata given most of the supplier arrangements are fiercely protected by Apple, and could also hand rivals, counterfeiters and its own vendors a ​view of who makes what.

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Tata, which both supplies parts and assembles iPhones as a contract manufacturer, is emerging as one of Apple's most important manufacturing partners ​outside China, an expansion that is a cornerstone of Prime Minister Narendra Modi's push to make India an electronics manufacturing powerhouse.

Apple ⁠is reportedly on track to release its iPhone 18 Pro and Pro Max in September. The leak comes at a difficult time for Apple, which last week raised iPad ​and MacBook prices due to soaring memory and storage chip costs, with analysts expecting Apple to increase iPhone prices in the coming months.

Reuters has previously reported the Tata Electronics leak ​of more than 200,000 files on the dark web by World Leaks had files with purported component design papers of older iPhones and some parts of Tesla - both Tata clients. They also included documents of Taiwan Semiconductor Manufacturing Co (2330.TW), opens new tab and Qualcomm (QCOM.O), opens new tab, both of which make parts used in iPhones.

New documents reviewed by Reuters show there are at least six files that map many components in the ​iPhone 18 Pro models to the specific company that supplies them. These include details of chips on its main circuit board and parts of the battery and cameras.

Apple ​considers this detail sensitive and is concerned about the documents being shared on the dark web as they relate to unreleased models, according to the person familiar with the matter. The data ‌maps suppliers ⁠to iPhone parts, which Apple does not disclose in its public database of suppliers, the person added.

In all, the documents detail hundreds of parts to be on the upcoming iPhone 18 Pro models.

The records also show where Apple draws a part from several suppliers and where it relies on just a few, laying bare both its bargaining leverage and its vulnerabilities.

Spokespeople for Apple and Tata did not respond to Reuters queries.

World Leaks has previously claimed responsibility for a Nike break-in. Reuters has not verified the authenticity of the ​data and could not immediately reach World ​Leaks for comment.

News website AppleInsider first ⁠reported last week that iPhone 18 Pro documents were part of the Tata leak.

Reuters has previously reported that Apple is investigating the matter and working with Tata on long-term measures. Tata has restricted internal access to sensitive systems as it investigates the leak, and ​hired a global consultant to conduct a forensic audit.

DROP-TEST IMAGESSeveral of the leaked files carried Apple "confidential" watermarks and internal Apple code-names ​consistent with the iPhone ⁠18 Pro generation, according to the source familiar with the matter.

Inside the folder for iPhone 18 Pro files are photographs of iPhones undergoing drop tests at one of Tata's plants, dated early 2026. They depicted a conventional slab-shaped, grey handset with a three-rear-camera setup and the Apple logo.

Reuters could not with certainty identify the model number of the phone, but ⁠the source said ​the photos are of iPhone 18 Pro models.

For Apple and Tata, the breach cuts at the trust ​underpinning their partnership. Apple's move into India rests on its newest major assembler Tata, just as the company increasingly diversifies beyond China.

The bet has fast paid off: India is on track to make 26% of ​the world's iPhones in 2026, up from 6% four years ago, according to Counterpoint, a research firm.

Reporting by Munsif Vengattil, Aditya Kalra, and Stephen Nellis; Editing by Nick Zieminski

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

Based in Bengaluru, Munsif Vengattil leads Reuters' technology news coverage in India. He tracks themes at the intersection of tech, business, and labor. A reporter for nine years, Munsif has written extensively on India's electronics manufacturing aspirations and its tech policy space, AI and election interference, satellite internet, streaming wars, and data breaches. His stories also focus on investigating corporate strategies and revealing India-specific initiatives and challenges of the biggest of tech firms - from Apple, Facebook, and Google, to Foxconn, Samsung, and Nvidia.

Aditya Kalra is the Company News Editor for Reuters in India, overseeing business coverage and reporting stories on some of the world's biggest companies. He joined Reuters in 2008 and has in recent years written stories on challenges and strategies of a wide array of companies -- from Amazon, Google and Walmart to Xiaomi, Starbucks and Reliance. He also extensively works on deeply-reported and investigative business stories.

© luchschenF / Shutterstock.com

Most of the Street holds more moderate views SanDisk (NASDAQ:SNDK | SNDK Price Prediction), with the consensus 12-month target sitting at $1,912.04. Then Citi’s Asiya Merchant raised her target to $2,500 from $2,025 on June 25, 2026, maintaining a Buy landed and reset the ceiling. Consensus implies roughly flat from here. Citi sees $500 more to go per SNDK share.

But can SNDK realistically reach $2,500 by the end of 2026? The setup is unusual: a memory company posting hyperscaler-grade growth, zero long-term debt after retiring $650 million in obligations, and a freshly authorized buyback running alongside Q4 guidance that implies sequential acceleration.

For long-term investors and retirement accounts, the question is whether the structural NAND cycle has truly changed, or whether this is another cyclical peak dressed up as secular growth.

Asiya Merchant’s $2,500 SNDK prediction Citi analyst Asiya Merchant’s call hinges on Micron’s blowout quarter signaling the NAND market stays tight through 2027. The fundamentals back it. SanDisk just posted revenue of $5.95 billion, a 25.68% beat, with datacenter revenue up 645% YoY and 233% sequentially. Gross margin expanded from 22.5% to 78.4% YoY. That is the mechanic Citi is pricing. Datacenter revenue surged 645% year-over-year to $1.47 billion, Edge climbed 295% to $3.66B, and even the Consumer segment grew 44% to $820 million. This is broad-based strength that distinguishes this cycle from prior NAND upturns driven by a single end market.

Furthermore, CEO David Goeckeler framed the quarter as “a fundamental inflection point for Sandisk — where our technology leadership is enabling a deliberate shift in our mix toward the highest-value end markets, led by Datacenter.” He also flagged the company’s “new business model built on multi-year customer engagements backed by firm financial commitments,” which he said is “driving structurally higher and more durable earnings power.” Five such New Business Model agreements have already been signed: three in Q3 and two in Q4. This gave Citi rare multi-year visibility into a name that historically traded on spot-pricing whims.

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Key drivers of SNDK stock performance Structural NAND shortage. Supply tightness is expected to persist through 2028. That tightness acts as a moat that protects pricing across the multi-year window retirement accounts depend on. Industry watchers expect the imbalance to persist through 2028, supported by disciplined capex from SanDisk, Kioxia, and the rest of the NAND oligopoly. AI datacenter demand. Hyperscaler capex plus KV-cache offload to SSDs put NAND at the center of inference infrastructure. Five multi-year customer agreements signed give rare earnings visibility for a memory name. The ramp of BiCS8 NAND and the rollout of High Bandwidth Flash (HBF) for AI inference further expand the addressable market beyond traditional storage. Cash generation. $2.99 billion of free cash flow last quarter, zero long-term debt, and a fresh buyback authorization fund the next phase without dilution. With zero long-term debt and a newly authorized share repurchase program, management has optionality on capital returns that few memory peers can match. What will it take for SNDK to reach $2,500? SanDisk’s implied market capitalization would be roughly 25% more than the current $300 billion market cap. For that to clear, three conditions matter.

NAND pricing has to hold into 2027 and beyond, which would validate the structural-shortage thesis. Q4 guidance of $7.75 billion to $8.25 billion in revenue and Non-GAAP EPS of $30 to $33 needs to land at or above the high end, with non-GAAP EPS of $30.00–$33.00 and gross margin of 79.0%–81.0% confirming that pricing power is sticking. The New Business Model contracts must scale toward the $42 billion in committed supply already cited by analysts, locking in multi-year revenue at premium margins. The primary risk is valuation. Trailing P/E sits near 70x, the stock has dropped about 13.6% in a single session during a Korea-led tech selloff, and insider selling has appeared at the highs. Other risks include reliance on the Kioxia strategic relationship, customer concentration among hyperscalers, evolving trade and tariff policy, and cybersecurity exposure inherent to large-scale semiconductor operations.

SanDisk only separated from Western Digital (NASDAQ:WDC) in February 2025, so the standalone operating track record is short. Therefore, investors are effectively underwriting a thesis based on a handful of quarters.

Still, if the shortage thesis holds and the New Business Model contracts deliver the visibility management has promised, Citi’s $2,500 is defensible. Moreover, the long-term setup remains intact for investors who can stomach the volatility.

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Key Takeaways Moderna outlined a three-horizon pipeline strategy to diversify beyond vaccines across new therapies.MRNA plans to advance its first in vivo CAR-T candidate into clinical studies by the end of 2027.Moderna highlighted AI integration to speed drug discovery and cited several upcoming clinical catalysts. Shares of Moderna (MRNA - Free Report) rose nearly 13% on Friday after the company unveiled a long-term strategy to transform itself from a vaccine-maker into a diversified biotechnology company.

Moderna Looks Beyond Its Vaccine BusinessAt its Science Day event, Moderna outlined plans to expand beyond its traditional vaccine business by leveraging its messenger RNA (mRNA) platform across multiple therapeutic areas.

To execute this strategy, the company has divided its pipeline into three horizons. Horizon 1 comprises its commercial products and late-stage pipeline assets, including the Merck (MRK - Free Report) -partnered personalized cancer therapy, intismeran autogene, and rare disease therapeutics.

Horizon 2 focuses on emerging clinical programs currently being evaluated in early-stage studies. These include cancer antigen therapies such as mRNA-4359, mRNA-4106 and mRNA-4200, along with T-cell engagers, cell therapy enhancers and an investigational therapy for multiple sclerosis.

In contrast, Horizon 3 or "future modalities," consists of earlier-stage research programs that have yet to enter the clinic. These include in vivo CAR-T and CAR-M cell therapies, which could become the company's next-generation growth platforms. As part of this horizon, Moderna unveiled mRNA-6007, its first in vivo CAR-T therapy, which it plans to develop for systemic lupus erythematosus (SLE) and other B-cell-mediated autoimmune diseases. The company expects to advance the candidate into clinical studies by the end of 2027.

MRNA Stock PerformanceThe broader pipeline strategy highlights Moderna's efforts to leverage its mRNA platform beyond vaccines and build multiple long-term growth franchises across oncology, rare diseases, autoimmune disorders and cell therapies. Investors appear to have welcomed this diversification strategy, helping lift the stock to a 52-week high of $69.29.

Year to date, the stock has skyrocketed 128% compared with the industry’s 5% growth.

Image Source: Zacks Investment Research

Moderna Explores AI to Accelerate Drug DiscoveryBeyond expanding its pipeline, Moderna also highlighted plans to expand its use of artificial intelligence (AI) to accelerate drug discovery and development. The company is integrating AI, machine learning and platform data to improve target identification, optimize molecule design and streamline clinical development.

Management believes these capabilities will help improve R&D productivity and support the development of future mRNA-based medicines across multiple therapeutic areas.

Upcoming Catalysts Drive MRNA StockSeveral near-term catalysts could support Moderna’s long-term growth strategy. These include a potential FDA approval of its seasonal influenza vaccine, which is expected early next month.

Investors will also be watching several important clinical milestones that could serve as catalysts for the stock over the coming quarters. These include phase III data on intismeran in melanoma, a readout from the company's late-stage norovirus vaccine program and data from the registrational study evaluating its propionic acidemia candidate.

MRNA’s Zacks RankModerna currently carries a Zacks Rank #3 (Hold).

Key Picks Among Biotech StocksSome better-ranked stocks from the sector are Immunocore (IMCR - Free Report) and Indivior Pharmaceuticals (INDV - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Immunocore’s 2026 bottom line have improved from a loss per share of 88 cents to earnings of 6 cents. Over the same period, estimates for 2027 EPS have risen from 24 cents to 87 cents. IMCR’s shares have lost nearly 11% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters but missed the mark on one occasion, delivering an average surprise of 46.66%.

Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 EPS have increased from $3.33 to $4.05. Over the same period, EPS estimates for 2027 have risen from $3.56 to $4.27. INDV’s shares are up nearly 17% year to date.

Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 65.44%.

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NextEra Energy (NYSE: NEE | NEE Price Prediction) and Enbridge (NYSE: ENB) both just reported, and the contrast matters. Big Tech wants uninterrupted power for AI training, and these two answer that demand from opposite ends of the energy system. NextEra builds the plants. Enbridge moves the fuel. The quarter shows why investors leaning on a pure renewables story may need to recalibrate.

Renewables Backlog Swells. Pipelines Stay Booked Solid. NextEra posted Q1 adjusted EPS of $1.09, up 10% YoY, on revenue of $6.701 billion. Energy Resources added 4 gigawatts to backlog, lifting the total to roughly 33 gigawatts including 1.3 gigawatts of battery storage. CEO John Ketchum said FPL is fielding “about 21 gigawatts of large load interest”, with around 12 gigawatts in advanced talks. The Department of Commerce tapped NextEra to build 9.5 gigawatts of new gas-fired generation in Texas and Pennsylvania.

Enbridge reported adjusted EPS of $0.98, down from $1.03, while distributable cash flow rose to $3.85 billion. Mainline volumes averaged 3.2 million barrels per day, with CEO Greg Ebel noting the system has been “apportioned all year.” Enbridge sanctioned the 300 MW Cone onshore wind project in Texas, extending its Meta partnership past 1 gigawatt of combined power generation.

Build the Power Plant vs. Move the Fuel Lens NextEra Enbridge Core bet Renewables, nuclear restart, new gas Gas pipelines, storage, select renewables AI hook Google nuclear PPA, 40 data center hubs 10 Bcf/d takeaway opportunity Dividend yield ~2.7% ~6.8% Forward P/E 22 27 The intermittency problem sits behind every NextEra bull case. AI training models and data center campuses require continuous, 100% stable, always-on baseline power, and wind and solar do not deliver that without cost-prohibitive utility-scale storage. Ketchum clearly knows it, which is why NextEra is restarting Duane Arnold’s 615 MW reactor under a 25-year Google PPA and accepting a federal mandate to build gas. Enbridge sidesteps that debate, earning take-or-pay fees on fuel that fires plants other companies build.

The AI Baseload Test Comes Next Watch whether NextEra converts that 21 GW of FPL large load interest into signed tariffs by year-end, and whether Duane Arnold stays on its Q4 2028 to Q1 2029 restart timeline. For Enbridge, the 50+ data center opportunities targeting new takeaway capacity are the swing factor. Ebel’s C$40 billion sanctioned backlog already supports the 31st consecutive annual dividend increase, so execution risk feels lower.

Why I Lean Toward Enbridge for AI-Era Income For a defensive way to play surging AI power demand, Enbridge looks more durable. The 6.8% yield is backed by contracted cash flows, leverage at 5.0x debt-to-EBITDA sits at the top of the target range but stays manageable, and the gas-as-baseload narrative strengthens as hyperscalers chase 24/7 reliability. NextEra remains the higher-growth story, with 8%+ EPS CAGR through 2032 and visible hyperscaler wins. Yet the premium valuation, the $24.6 billion 2025 capex pace, and the Q4 2025 EPS of $0.54 against a $0.92 consensus tell me the execution bar is high. For investors prioritizing capital preservation in an AI grid that punishes intermittency, ENB screens as the more defensive profile.

Key Takeaways Duke Energy plans to invest about $103B from 2026-2030 to expand and modernize regulated utilities.DUK reaffirmed 2026 EPS guidance and expects 5-7% adjusted EPS growth through 2030.Duke Energy sees rising demand from data centers, manufacturing and economic development projects. Duke Energy (DUK - Free Report) is entering one of the largest capital investment cycles in its history, positioning itself to benefit from rising electricity demand while maintaining relatively predictable cash flows.

Duke Energy plans to invest approximately $103 billion between 2026 and 2030 to modernize its regulated electric and gas utilities, expand generation capacity, strengthen grid reliability and meet accelerating electricity demand. Management reaffirmed its 2026 adjusted earnings per share (EPS) guidance of $6.55-$6.80 and a 5-7% adjusted EPS growth rate projection through 2030, with confidence to earn in the top half of the range beginning in 2028. The company reaffirmed its 2026 capital expenditure outlook of approximately $17.75 billion, with year-to-date spending totaling $4.19 billion as of March 31, 2026.

Duke Energy continues to see increasing demand from large commercial and industrial customers, particularly data centers, advanced manufacturing facilities and economic development projects across North Carolina, South Carolina, Florida, Indiana and other service territories. Management expects these trends to remain an important driver of load growth over the coming decade.

DUK is simultaneously executing a balanced energy transition strategy. Rather than relying on a single technology, the company is expanding renewable generation, investing in battery storage, upgrading natural gas assets and exploring advanced nuclear technologies.

Although regulatory approvals and interest rates remain important factors to monitor, Duke Energy's predominantly regulated business model provides unusually strong earnings visibility. As capital investments are placed into service and incorporated into the regulated asset base, they create opportunities for steady earnings growth while supporting the company's long-standing commitment to dividend increases.

Utilities With Multi-Billion-Dollar Capital Investment PlansAlong with Duke Energy, several other utilities are also pursuing similar long-term investment strategies, as discussed below:

NextEra Energy, Inc. (NEE - Free Report) aims to invest nearly $94.2 billion in the 2026-2030 period. Its unit, Florida Power & Light Company, plans to invest nearly $57.38 billion during 2026-2030 to develop new generation units, add new transmission and distribution units, and strengthen existing operations.

Dominion Energy, Inc. (D - Free Report) has a well-chalked-out long-term capital expenditure plan to strengthen and expand its infrastructure. The company plans to invest $11.4 billion in 2026 and nearly $65 billion during the 2026-2030 period to further strengthen its operations.

DUK’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 6.34% and 6.49%, respectively, year over year.

Image Source: Zacks Investment Research

DUK Stock Trading at a PremiumDUK is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 18.56X compared with the industry average of 16.29X.

Image Source: Zacks Investment Research

DUK Stock Price PerformanceIn the past six months, the company’s shares have risen 9.3% compared with the industry’s 10.7% growth.

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

Shares of Palantir Technologies PLTR rose on Monday as investors welcomed a new artificial intelligence partnership with Nvidia (NVDA), extending the stock's recovery after it snapped a seven-day losing streak last week.

Palantir stock advanced more than 3% to $116.45 after gaining 5.3% on Friday.

The rebound follows a difficult month for the software company, with shares down 25% in June and on track for their weakest monthly performance in five years.

The latest gains came after Palantir announced a new strategic initiative with Nvidia to build custom artificial intelligence models for the US government using the Nvidia AI ecosystem and Nvidia Nemotron AI models.

Under the partnership, Nvidia's AI platform and Palantir's critical infrastructure products will be integrated to provide US government agencies with a secure "intelligent engine" for training and deploying AI models.

The platform is designed for government agencies and critical US infrastructure operators that require secure, mission-critical AI deployments while maintaining operational control over sensitive data.

According to Palantir, the platform includes explicit data authorization, secure perimeter enforcement, customer-specific isolation, data portability, the right to erase data and full auditability.

The company said these capabilities are intended to help organizations meet stringent regulatory and security requirements.

"Combining Palantir infrastructure with Nvidia's AI and Nemotron models will allow the US government to unleash the full power of LLMs while removing the underlying security risks and rational concerns around proprietary insights migrating into the weights of closed models," Palantir CEO Karp said.

The announcement marks another collaboration between the two companies and comes after a sharp pullback in Palantir's share price during June.

Separately, Palantir and Surf Air Mobility (SRFM) announced an expansion of their commercial partnership to accelerate the rollout of SurfOS.

The companies said they are adding engineering and go-to-market resources to speed deployment of OperatorOS, OwnerOS and SurfOS Enterprise Solutions.

The expanded partnership follows the commercial launch of BrokerOS and Surf Air Mobility's recent multi-million-dollar Enterprise BrokerOS agreement with Wheels Up.

Powered by Palantir's Artificial Intelligence Platform (AIP) and Foundry, SurfOS is designed to modernize private aviation by helping operators, brokers, owners and manufacturers improve efficiency while lowering costs.

According to the companies, the expanded collaboration will accelerate product development, including deployment of AIP agents, while positioning SurfOS as a central operating system for the private aviation and air mobility industry.

Technical picture remains under pressureDespite Monday's rally, Palantir shares remain well below several important technical levels after a prolonged selloff.

The stock has fallen 30% in 2026 amid broader concerns that advances in artificial intelligence could disrupt software companies.

During its seven-day losing streak between June 16 and June 25, the shares broke below multiple technical support levels and slipped beneath both their 50-day and 200-day moving averages.

Palantir's 50-day moving average stands near $136, while its 200-day moving average is around $158.6.

The February "death cross," when the 50-day moving average fell below the 200-day moving average, continues to weigh on the technical outlook.

Momentum indicators also remain subdued, with the Moving Average Convergence Divergence (MACD) indicator below its signal line and the histogram remaining negative.

Even so, Monday's gains suggest investors are responding positively to Palantir's expanding AI initiatives.

The Nvidia partnership, coupled with the broader commercial expansion with Surf Air Mobility, provides fresh catalysts as the company seeks to regain momentum after one of its sharpest monthly declines in recent years.

Shares of Albemarle (ALB 3.34%) are flat so far this year, thanks to an oversupply of lithium and a flattened demand for electric vehicles (EVs) in the United States.

However, the long-term need for this critical metal is projected to increase 353% by the end of the decade, according to a report by the United Nations Conference on Trade and Development.

Albemarle, the largest lithium miner in the world in terms of production, is in a good position to benefit from that trend.

Image source: Getty Images.

The price of lithium is bouncing back After lithium prices collapsed from their 2022 peaks, the market finally found its floor in late 2024 and has staged a resilient year-to-date rebound. Chinese spot prices have climbed back into the $23 per kilogram (kg) range, up from their $10 kg low in the fall of 2024, thanks to a restocking cycle by battery manufacturers.

While EV demand is steady, a new catalyst has emerged: utility-scale battery energy storage systems (BESS). Driven by renewable energy mandates and surging power demands from artificial intelligence (AI) data centers, BESS output is projected to jump roughly 35% year over year.

Because major producers curtailed expansion plans during the downturn, analysts project a 4% global lithium supply deficit for 2026, which should act as a powerful tailwind for realized pricing.

Radical cost discipline and blowout earnings Albemarle has pivoted from a pure growth mindset to a stricter focus on operational efficiency. It slashed capital expenditures by 46% year over year in the first quarter, idled high-cost capacity, including its Kemerton Train 1 facility in Western Australia in February, and divested its Ketjen catalyst division in March, to become a lean, pure-play energy transition company.

The strategy is already paying off. In the first quarter, Albemarle reported sales of $1.4 billion, up 33% year over year, driven mainly by higher pricing and volume in energy storage. And adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $664 million, up 148% from the same period a year ago.

Even with disciplined spending, Albemarle remains on track to deliver a 15% volumetric compound annual growth rate (CAGR) in Energy Storage through 2027 by focusing strictly on high-return, tier-one assets such as its Greenbushes mine in Australia and the Salar de Atacama mine in Chile.

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A repaired balance sheet and an underpriced stock The company has used its surging free cash flow to execute a dramatic debt-clearing program. In the first quarter, Albemarle used $248 million in free cash flow alongside strategic actions to pay down $1.3 billion in debt, bringing its debt-to-EBITDA ratio down to a more secure 1.0x. This debt reduction slashed its weighted average interest rate to 3.1%, permanently lowering annual interest expenses.

Despite strong fundamental momentum, the stock has recently experienced short-term technical weakness, pulling back to the $140 range, while analysts' average price target is $214.65. The company's shares are trading for less than 12 times forward earnings. This leaves the stock trading at a discount to its intrinsic value, offering an excellent entry point for long-term investors.

The company's dividend yields an above-average 1.15% at its current share price, and with a payout ratio of 46%, there's room to grow its dividend. That means investors can afford to ride the stock's swings until it rises.

Key Takeaways ISRG posted 23% revenue growth in Q1 2026, exceeding 17% procedure growth on pricing strength.ISRG cited SAGES data showing da Vinci Force Feedback lowered tissue force during surgery.ISRG is expanding AI and digital tools to strengthen workflow, automation and clinical value. Intuitive Surgical’s (ISRG - Free Report) long-term competitive advantage increasingly rests on its “Quintuple Aim” strategy, a framework centered on delivering better clinical outcomes, improved patient experience, enhanced care team efficiency, lower total cost of care, and broader access to treatment.

Management continues to position this strategy as the foundation behind the company’s premium pricing, particularly as the adoption of its newest da Vinci 5 platform accelerates. In the first quarter of 2026, management highlighted that revenue growth of 23% outpaced procedure growth of 17%, reflecting what executives described as “innovation-led revenue growth” driven by differentiated product capabilities and accretive pricing.

The pricing premium appears increasingly supported by measurable clinical evidence. Recent clinical abstracts presented at the SAGES conference demonstrated lower tissue force during procedures using da Vinci Force Feedback instrumentation, reinforcing management’s belief that greater precision can improve surgical outcomes. Similarly, the company emphasized emerging clinical evidence showing improved appendectomy outcomes compared with traditional laparoscopy, supporting broader procedural adoption.

The Quintuple Aim strategy is also deeply tied to Intuitive Surgical’s expanding digital and AI ecosystem. By leveraging surgical video, force data, kinematics and connected EMR integration, the company aims to improve workflow optimization, anatomy identification and future automation capabilities, creating a differentiated ecosystem that competitors may struggle to replicate.

However, long-term pricing power ultimately depends on maintaining superior clinical value. As robotic surgery competition intensifies globally, particularly from lower-cost entrants in China and Europe, Intuitive Surgical faces the risk that competitors could narrow the outcome gap while offering more affordable alternatives. For now, ISRG’s extensive clinical evidence, technology leadership and integrated ecosystem continue to justify its premium positioning.

Peer UpdatesEdwards Lifesciences (EW - Free Report) continues to support premium pricing through its strong clinical differentiation, long-term evidence generation, and technological leadership in structural heart therapies. In the first quarter of 2026, Edwards reported 12.7% sales growth, driven largely by robust demand for its SAPIEN TAVR platform, where average selling prices remained stable despite competitive pressure.

A major factor supporting premium pricing is the company’s unmatched clinical evidence base, including 7-year PARTNER 3 and 10-year PARTNER II durability data, which management said continues to reinforce physician confidence in SAPIEN’s long-term valve performance.

Premium pricing benefits from Edwards Lifesciences’ differentiated portfolio across TAVR, EVOQUE, PASCAL, and SAPIEN M3, supported by continued innovation, expanding indications, and strong physician adoption. The company’s ability to deliver superior clinical outcomes and maintain leadership in structural heart therapies continues to justify its pricing power globally.

Glaukos (GKOS - Free Report) is maintaining premium pricing through innovative ophthalmology therapies, backed by differentiated clinical outcomes, expanding reimbursement coverage, and first-mover advantage in new treatment categories. In the first quarter, Glaukos posted record sales growth of 41%, supported by strong adoption of iDose TR, which generated approximately $54 million in quarterly sales.

Premium pricing strength is primarily driven by 22 peer-reviewed clinical publications demonstrating strong efficacy, safety, and durability, giving physicians confidence in the product’s long-term therapeutic value. The company is further strengthening pricing power through Epioxa, a novel incision-free keratoconus treatment designed to improve patient experience, reduce procedural pain, and deliver meaningful clinical outcomes.

Expanding payer coverage, including access to more than 100 million covered commercial lives and new CMS reimbursement pathways, reinforces Glaukos’ ability to command premium pricing while building long-term market leadership in interventional ophthalmology.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 28.5% so far this year compared with a 14.1% decline of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 36.64X, above the industry average. But, it is still lower than its five-year median of 69.93X. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 16.6% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

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

Key Takeaways BlackBerry posted stronger first-quarter results with higher margins, cash flow and raised guidance.BB continues expanding QNX across software-defined vehicles, embedded markets and Secure Communications.BlackBerry's richer valuation means future gains hinge on sustained execution and profitable growth. BlackBerry Limited (BB - Free Report) has been one of the market's biggest turnaround stories in 2026, with its shares surging as investors increasingly recognize the company's successful transformation into a software and cybersecurity business. Strong execution across QNX and Secure Communications, improving profitability and higher financial guidance have fundamentally changed sentiment surrounding the stock.

BB’s shares have gained 148.9% in the past year, significantly outpacing the Internet Software industry’s fall of 23.6%. The broader Zacks Computer & Technology sector and the S&P 500 composite have registered gains of 33.2% and 21.8%, respectively.

Image Source: Zacks Investment Research

However, after such a dramatic rally, the investment question has shifted. Rather than asking whether BlackBerry's business is improving, investors must determine whether those operational gains are sufficient to justify today's valuation. While the company continues to benefit from several long-term growth catalysts, expectations have also risen considerably, making execution increasingly important.

BlackBerry Delivers Better ResultsBlackBerry's latest quarterly results demonstrated that its turnaround is translating into stronger financial performance.

Fiscal first-quarter 2027 revenue increased 26% year over year to approximately $153 million, exceeding the high end of management's guidance. Adjusted earnings per share came in at 4 cents, while adjusted EBITDA more than doubled from the prior-year period to approximately $36 million, representing a 24% margin. Gross margin expanded four percentage points year over year to roughly 79%, highlighting improving operating leverage as higher-margin software revenue becomes a larger portion of the business.

Cash generation also improved meaningfully. BlackBerry produced approximately $5 million in operating cash flow during what management described as a seasonally weaker quarter and generated positive free cash flow while reporting its fifth consecutive quarter of positive GAAP net income. The company also raised its full-year operating cash flow expectation to approximately $100 million, reinforcing management's confidence that revenue growth is increasingly translating into sustainable profitability.

Image Source: Zacks Investment Research

Why BB Still Has Growth CatalystsDespite the stock's sharp advance, BlackBerry still has several long-term growth drivers.

QNX remains the company's primary growth engine as automakers continue adopting software-defined vehicle architectures that require increasingly sophisticated operating systems. Development license revenue reached its highest level in eight quarters, an encouraging indicator because these licenses are typically purchased years before production royalties begin. Management also continues to expand QNX's footprint across advanced driver assistance systems, centralized vehicle computing and commercial vehicles.

Beyond automotive, General Embedded Markets (GEM) represent another attractive opportunity. Robotics, industrial automation, medical devices and semiconductor equipment all require safety-certified embedded operating systems; while emerging Physical AI applications could significantly expand BlackBerry's addressable market over time. Alloy Core also offers the potential to increase software content per vehicle, raising average selling prices and expanding future royalty revenue if customer adoption accelerates.

Licensing has also improved, with fiscal first-quarter revenue exceeding expectations due to stronger licensing agreements and one-time deals. Meanwhile, Secure Communications continues benefiting from digital sovereignty initiatives, cybersecurity modernization and increasing government demand for encrypted communications. Stable recurring revenue, healthy customer retention and opportunities for additional large government contracts provide another avenue for long-term growth.

What Could Slow BlackBerryWhile the long-term outlook has improved, several risks remain.

Macroeconomic uncertainty continues to affect automotive customers, with some manufacturers delaying development programs because of supply chain challenges, tariff concerns and broader economic caution. Since QNX royalties ultimately depend on vehicle production, prolonged delays could slow revenue realization even if design wins remain healthy.

Secure Communications also faces inherent variability because government procurement cycles are unpredictable. Large contracts often require lengthy approval processes, meaning quarterly revenue can fluctuate significantly depending on the timing of major awards. Geopolitical changes across the United States, Canada, Germany and other key markets could also delay procurement decisions or alter government spending priorities.

Competition remains another important consideration. BlackBerry operates in rapidly evolving markets where continuous investment in research and development is necessary to maintain technological leadership. The company competes against well-capitalized software and cybersecurity providers, including CrowdStrike (CRWD - Free Report) and Palo Alto Networks (PANW - Free Report) , requiring ongoing innovation to preserve its competitive position.

BB Trades at a Premium ValuationBlackBerry's improving fundamentals have been accompanied by a significantly richer valuation following the stock's powerful 2026 rally.

The stock currently trades at a forward 12-month P/E of 76.62, compared with the sub-industry average of 24.93. Those multiples represent a substantial premium compared with where the company traded before investors began pricing in its improving growth outlook.

Image Source: Zacks Investment Research

The current Zacks price target of $13 implies additional upside from recent trading levels but suggests a more measured return potential than earlier in the turnaround. While BlackBerry's operational progress clearly supports a higher valuation than in prior years, investors are now paying for anticipated future growth rather than simply a restructuring story.

As a result, future share appreciation will likely depend more on sustained execution across QNX, Secure Communications and cash generation than on multiple expansion alone.

How BB's Ratings Fit Investor DecisionsBlackBerry currently carries a Zacks Rank #2 (Buy), reflecting improving earnings expectations and constructive near-term sentiment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock also earns a Growth Score of A, supported by accelerating revenue growth, expanding margins and improving operating cash flow. However, its Value Score of F indicates that shares no longer appear inexpensive after the rally, while its Momentum Score of F suggests recent price action already reflects much of the improving outlook. Together, these produce an overall VGM Score of D.

Taken together, the ratings reinforce a balanced investment case. BlackBerry continues to benefit from strong execution, expanding QNX opportunities and improving financial performance that support a favorable near-term outlook. At the same time, richer valuation metrics mean investors should expect future returns to depend increasingly on the company's ability to sustain profitable growth rather than simply improving sentiment.

For investors with a long-term horizon, BlackBerry's transformation appears increasingly credible. However, after its massive 2026 rally, the stock now offers a more balanced risk-reward profile, where continued operational execution will be essential to justify further upside.

Key Takeaways Globus Medical outpaced Medtronic in share gains and analyst price target upside over the past year. GMED posted strong Spine and Trauma growth, stayed debt-free and continued investing in R&D and new product. MDT expanded robotics and digital surgery, increased its dividend and returned $4.2 billion to shareholders. Over the past year, shares of Globus Medical (GMED - Free Report) and Medtronic (MDT - Free Report) have gained 46.1% and 7.6%, respectively, significantly outperforming the industry’s 9.6% decline. U.S. medical stocks offer strong structural growth prospects driven by an aging global population, rising chronic disease prevalence and rapid technological integration. 

Given these positives, Globus Medical posted revenue growth of 27% year over year in the first quarter. Medtronic experienced 9.9% year-over-year revenue growth in the fiscal fourth quarter. 

It is time for investors to assess whether this momentum can extend through 2026. Let’s find out.

Image Source: Zacks Investment Research

The Case for GMEDGlobus Medical is taking share in Musculoskeletal Solutions, supported by broad-based growth across its core categories. In the first quarter of 2026, U.S. Spine marked its third straight quarter of 10% growth, with double-digit growth cited across standard fixation, minimally invasive surgery pedicle screws, expandable transforaminal lumbar interbody fusion, anteriorlumbar interbody fusion, posterior cervical and cervical plating. 

International Spine also grew 16.4% in the first quarter. Trauma revenues increased 30.4%, aided by continued adoption of the core trauma line and the Precice limb lengthening portfolio, with ANTHEM Elbow continuing to exceed expectations. 

The company continues to invest in R&D and product cadence as core part of its competitive positioning. In the first quarter of 2026, R&D expenses were 4.8% of sales, with management expecting it to be 5-6% of net sales for the full year, with spend ramping methodically through the year as product efforts progress. 

Its early FDA 510(k) clearances for patient-specific lumbar spacers and rods reinforced its roadmap of linking planning software, enabling technologies and implants into one workflow. This launch activity complements the broader post-merger strategy of compressing development timelines and keeping the portfolio fresh across spine and orthopedics.

Globus Medical ended the first quarter of 2026 with $560.9 million of cash and cash equivalents and $68.9 million of short-term marketable securities. The company remains debt-free, which preserves the capacity to fund R&D, sales-force investments and manufacturing expansion without relying on external financing. Liquidity is also being replenished internally, with $202.4 million of operating cash flow generated in the quarter. This supports continued capital spending and buybacks alongside ongoing integration work.

The Case for MDTWithin Medtronic’s Medical Surgical portfolio, growth is supported by Hugo robotic-assisted surgery, Touch Surgery, Endoscopy and Acute Care & Monitoring. Surgical & Endoscopy rose 3.5% organically in the fourth quarter, with Hugo contributing as procedure volumes expanded globally. 

Acute Care & Monitoring grew 10.5% organically in the fourth quarter, driven by Nellcor pulse oximetry, respiratory and airway products, and perioperative offerings. Management expects MedSurg growth to normalize in fiscal 2027, but the portfolio enters the year with broader robotics and digital capabilities.

Also, the company submitted Hugo to the FDA for general surgery and gynecologic indications, as well as for the LigaSure RAS vessel sealer. It received FDA clearance for ProGrip Advanced, a mesh optimized for robotic-assisted ventral hernia repair. Touch Surgery installations exceeded 1,400 and increased more than 30% sequentially, adding a digital layer to the robotics ecosystem.

Medtronic exited fiscal 2026 with $9.2 billion in cash and investments compared with $8.38 billion at the end of the fiscal third quarter. On the debt side, the company issued $1.75 billion of long-term debt and repaid $2.93 billion during fiscal 2026, while current debt obligations increased $9 million on a net basis.

Medtronic returned $4.2 billion to shareholders in fiscal 2026 and raised its quarterly dividend to $0.72 per share for the first quarter of fiscal 2027, marking the 49th consecutive year of dividend increases. The balance sheet position gives the company room to support tuck-in deals in coronary, neurovascular, neuromodulation and EP imaging while maintaining shareholder returns.

Valuation: GMED vs. MDTGlobus Medical currently trades at a forward, one-year, price-to-sales (P/S) of 3.55X, higher than its median. Medtronic’s 2.67X P/S sits below its median. Additionally, Globus Medical trades expensive than Medtronic. 

Image Source: Zacks Investment Research

Short Term Price Target Favors GMED Over MDTGMED: Based on short-term price targets offered by 12 analysts, the average price target of $109.83 represents an increase of 29.75% from the last closing price.

Image Source: Zacks Investment Research

MDT: Based on short-term price targets offered by 25 analysts, the average price target of $96.96 represents an increase of 20.42% from the last closing price.

Image Source: Zacks Investment Research

End NoteBoth Globus Medical and Medtronic are well positioned to benefit from long-term growth trends in musculoskeletal and medical technology markets, but they offer different investment profiles.

Globus Medical stands out for its strong execution in Spine and Trauma, robust product innovation pipeline, debt-free balance sheet and disciplined investment in R&D, positioning it as a higher-growth company. Meanwhile, Medtronic benefits from greater scale and a diversified portfolio, supported by expanding robotic-assisted surgery capabilities, digital surgery platforms and a long track record of shareholder returns through dividends and capital allocation. 

For investors, Globus Medical, currently carrying a Zacks Rank #2 (Buy), appears to be the stronger choice, given that it has outperformed Medtronic over the past year. However, for investors seeking a more discounted entry, Medtronic, carrying a Zacks Rank #4 (Sell) at present, may offer deeper value but with meaningfully higher risk. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways PLUG is gaining from electrolyzer demand, while FLUX faces order delays and weak sales.Plug Power's electrolyzer pipeline exceeds $8B, but cash fell 39% in Q1 2026.Flux Power posted a 60.5% revenue drop in Q3 FY26 amid tariffs and lower volumes. Plug Power Inc. (PLUG - Free Report) and Flux Power Holdings, Inc. (FLUX - Free Report) are well-known names in the clean energy space. Both companies are engaged in developing advanced energy solutions for commercial and industrial equipment worldwide.

Plug Power continues to capitalize on opportunities in the expanding green hydrogen market, while Flux Power is benefiting from robust demand for sustainable energy storage solutions in the material handling industry. Which of these companies has the stronger upside potential? Let us take a detailed look at their fundamentals, growth drivers and challenges to find out.

The Case for PLUGPlug Power's first-quarter 2026 results continued to show signs of improvement. After growing12.9% in 2025, PLUG’s revenues surged 22% year over year in the quarter. Revenues were driven by an increase in demand for its electrolyzer product line and a volume increase in hydrogen fuel sales. In the quarter, revenues from the electrolyzer product line rose steeply approximately 345% on a year-over-year basis.

The robust growth was fueled by rising demand for the company's GenEco proton exchange membrane (PEM) electrolyzers in the industrial and energy markets. The company has more than 320 MW of electrolyzer capacity deployed worldwide and more than $8 billion in project pipeline across industrial and energy applications. With strong expertise in providing and installing electrolyzers, Plug Power is well-positioned to capitalize on the increasing demand for renewable fuels and green ammonia globally.

Also, last month, PLUG secured a contract for supplying 30 MW of GenEco PEM electrolyzers for the industrial hydrogen production plant located in Barrow-in-Furness, Cumbria. The project will deploy PLUG’s six 5 MW GenEco PEM electrolyzers for the production of green hydrogen.

Also, in April, Plug Power finalized one of the largest electrolyzer project deals in its history. The company received the Front-End Engineering Design (FEED) contract from Hy2gen Canada to deliver a 275 MW GenEco PEM electrolyzer system for the latter’s “Courant” decarbonized ammonium nitrate project.

PLUG’s Project Quantum Leap is also enabling it to boost its cash flow and reduce its cash burn rate. As part of the project, it is benefiting from sales growth, pricing actions, inventory and capex management, and increased leverage of its hydrogen production platform.

However, a key challenge facing Plug Power is its continued inability to generate positive gross margins and cash flows. In the first quarter, the company reported a negative gross margin of 13%, while operating cash outflow amounted to $150 million.

Plug Power's liquidity position also remains a concern. The company ended the first quarter of 2026 with cash equivalents of $223.2 million, down 39% from the level at 2025-end.

The Case for Flux PowerFlux Power has been witnessing a decline in customer orders due to delays in new orders for its energy storage solutions, reflecting deferrals of new forklift purchases by certain large customer fleet amid lower capital spending and global tariff uncertainties. Tariffs have also negatively impacted the company’s revenues, profitability and cash flows. These factors hurt the company’s performance in the third quarter of fiscal 2026 (ended March 31, 2026), with revenues declining 60.5% year over year. Lower volumes in the material handling and airport ground support equipment markets further weighed on results.

Flux Power has been dealing with the adverse impacts of lower volumes and pricing pressures. In the third quarter of fiscal 2026 (ended March 2026), cost of sales declined 58.2% year over year, but gross profit fell 66%. Although the company lowered expenses through labor and overhead cost reductions, it continued to face profitability challenges. It reported an operating loss of $3 million in the quarter, wider than the prior-year quarter's operating loss of $1.6 million.

Also, given its weak liquidity position, the company has continued to rely on debt and equity financing to fund operations. As of March 31, 2026, Flux Power had an accumulated deficit of $111.5 million and cash and cash equivalents of only $0.4 million. During the first nine months of fiscal 2026, the company used $5.7 million in operating activities and incurred a net loss of $5.1 million.

Despite these headwinds, the company remains focused on improving profitability through cost-reduction, sourcing and pricing recovery initiatives. Flux Power also continues to invest in research and development and expand its portfolio of advanced lithium-ion energy storage solutions. With increasing electrification trends across industrial and commercial sectors, demand for lithium-ion and environmentally friendly energy storage solutions should support FLUX’s long-term growth prospects.

How Does the Zacks Consensus Estimate Compare for PLUG & FLUX?The Zacks Consensus Estimate for PLUG’s 2026 sales is $812.5 million, implying year-over-year growth of 14.5%. The consensus estimate for its bottom line is pegged at a loss of 35 cents per share.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for FLUX’s fiscal 2026 (ending June 2026) sales is approximately $41.8 million, indicating a decline of 37.1% year over year. The consensus estimate for its bottom line is pegged at a loss of 34 cents per share.

Image Source: Zacks Investment Research

Price Performance and Valuation of PLUG & FLUXIn the past six months, shares of Plug Power have soared 30.9%, while Flux Power stock has declined 39.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, both PLUG and FLUX are trading at a negative forward price-to-earnings ratio.

Image Source: Zacks Investment Research

ConclusionDespite PLUG's ongoing challenges related to negative gross margins, cash burn and a weakening liquidity position, its strong presence in the green hydrogen market, expanding electrolyzer business, robust project pipeline and cost-saving initiatives under Project Quantum Leap are expected to support its long-term growth prospects. On the other hand, Flux Power continues to grapple with weak customer demand, lower sales volumes, pricing pressures, persistent operating losses and a fragile liquidity position, which are likely to weigh on its near-term performance.

Considering the long-term growth prospects, expanding market opportunities and recent revenue momentum, PLUG appears to be a better investment choice than FLUX at present. While PLUG currently carries a Zacks Rank #3 (Hold), FLUX has a Zacks Rank #5 (Strong Sell).

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

Key Takeaways Worldpay acquisition expands Global Payments' reach to 6M merchants worldwide.Digital payment trends and recurring revenues continue supporting long-term growth.Rising earnings estimates and strong cash flow reinforce the long-term investment case. Global Payments Inc. (GPN - Free Report) is well-poised to grow on the back of highly recurring, transaction-based revenues, strong free cash flow generation and secular digital payment tailwinds. However, increasing costs and intensifying competition remain concerns.

Global Payments — with a market cap of $19.1 billion — is a global payment solutions provider based in Atlanta, GA. Courtesy of solid prospects, this Zacks Rank #3 (Hold) stock is worth holding on to at the moment.

Where Do GPN’s Estimates Stand?The Zacks Consensus Estimate for Global Payments’ 2026 earnings is pegged at $13.86 per share, indicating a 13.4% year-over-year increase. The estimate has witnessed 12 upward revisions and one downward movement over the past 60 days. Furthermore, the consensus mark for revenues is pegged at $12.44 billion for 2026, indicating a 33.6% year-over-year jump.

It beat earnings estimates thrice in the past four quarters and met once, with the average surprise being 2.1%.

GPN’s Growth DriversGlobal Payments has entered a new phase with the completion of its Worldpay acquisition, creating one of the world's largest merchant acquirers. The combined company now serves more than six million merchants across 175 countries, processing about 94 billion transactions and $3.7 trillion in annual payment volume. The larger scale strengthens its position in enterprise payments while expanding its e-commerce and omnichannel offerings.

The business also benefits from a highly recurring revenue model. Once merchants integrate Global Payments' software and payment solutions into their operations, switching providers becomes costly and disruptive. That helps the company retain customers, generate steady transaction revenues and produce consistent cash flows.

Long-term industry trends remain another major advantage. Consumers and businesses continue shifting from cash to digital payments, supported by rising ecommerce activity, contactless transactions, embedded payments, software-integrated solutions, digital wallets and cross-border commerce. These trends should continue driving payment volumes over time.

Global Payments ended the first quarter of 2026 with about $5.9 billion in cash and generated $544 million in adjusted free cash flow, equal to nearly 70% of adjusted net income. Management expects free cash flow conversion above 90% for the full year and plans to return more than $2 billion to shareholders in 2026 while maintaining an investment-grade balance sheet.

Price Target for GPNBased on short-term price targets offered by 26 analysts, the Wall Street average price target for Global Payments is at $92.62 per share, suggesting a 32.7% upside from current levels.

Key ConcernsThere are a few factors that can hinder the stock’s growth.

Despite implementing various cost-control measures, the company's operating expenses are on the rise. Adjusted operating margin fell to 39.9% in the first quarter from 42.4% a year ago. Additionally, intensifying competition in the payments industry presents a challenge. Emerging fintech companies with strong growth potential are rapidly gaining market share, increasing the need for innovation and differentiation.

Nevertheless, GPN’s strategic approach — focusing on partnerships, technology investments and maintaining financial flexibility — positions it for long-term success despite these headwinds.

Better-Ranked PlayersSome better-ranked stocks from the broader payments space are Klarna Group plc (KLAR - Free Report) , Paymentus Holdings, Inc. (PAY - Free Report) and Remitly Global, Inc. (RELY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Klarna’s current-year earnings indicates a 105.1% year-over-year improvement. KLAR has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. The consensus estimate for current-year revenues is pegged at $4.44 billion, indicating 26.5% year-over-year growth.

The Zacks Consensus Estimate for Paymentus’ current-year earnings indicates a 19.7% year-over-year jump. PAY beat earnings estimates in each of the trailing four quarters, with the average surprise being 12%. The consensus estimate for current-year revenues implies 19.9% year-over-year growth.

The consensus estimate for Remitly Global’s current-year earnings indicates a 331.3% year-over-year surge to $1.38 per share. It has witnessed one upward estimate revision and no downward movement over the past 60 days. The consensus estimate for RELY’s current-year revenues is pegged at $1.97 billion, implying 20.4% year-over-year growth.

Key Takeaways VEEV acquired Copli and launched Falcon MLR to automate life sciences content reviews.Falcon MLR integrates with PromoMats to check content against labels and country rules.VEEV says Falcon MLR could eliminate over 70% of manual MLR labor in five years. Veeva Systems (VEEV - Free Report) has strengthened its artificial intelligence (AI)-driven commercial content capabilities with the acquisition of Copli, a pioneer in agentic medical, legal and regulatory (MLR) solutions for the life sciences industry. Alongside the acquisition, the company launched Veeva Falcon MLR, an AI-powered solution designed to accelerate content review and approval processes.

From an investor's standpoint, the acquisition expands Veeva's AI portfolio and enhances the value proposition of its commercial cloud offerings. By embedding agentic automation into the MLR workflow, the company is likely to drive stronger customer adoption, deepen platform stickiness and create additional cross-selling opportunities, which could support long-term revenue growth and strengthen its competitive position in the life sciences software market.

Likely Trend of VEEV Stock Following the NewsShares of VEEV have traded flat since the announcement on June 23. In the year-to-date period, shares of the company lost 23.3% compared with the industry’s 10.9% decline.  The S&P 500 increased 7.1% in the same time frame.

The launch of Veeva Falcon MLR is expected to strengthen Veeva's long-term growth prospects by expanding its AI-driven product portfolio and increasing the strategic value of its Commercial Cloud platform. As pharmaceutical and biotechnology companies seek to accelerate content approvals while maintaining regulatory compliance, Falcon MLR can help streamline one of the industry's most time-consuming workflows through agentic automation.

Its seamless integration with Veeva PromoMats is likely to drive broader customer adoption, improve client retention and create cross-selling opportunities across Veeva's installed base, reinforcing recurring subscription revenues and the company's leadership in life sciences software.

VEEV currently has a market capitalization of $27.84 billion.

Image Source: Zacks Investment Research

More on the NewsVeeva Falcon MLR is an agentic MLR solution that automates the review of promotional and medical content for life sciences companies. Built on Copli's technology and integrated with Veeva PromoMats, the solution conducts compliance checks against approved product labels and country-specific regulations, enabling marketing teams, MLR reviewers and agencies to streamline the review and approval process. According to Veeva, Falcon MLR has the potential to eliminate more than 70% of manual MLR labor over the next five years, significantly shortening review cycles while improving operational efficiency.

The launch is expected to primarily strengthen Veeva's Commercial Cloud business, particularly its Content Management portfolio led by PromoMats. PromoMats is widely used by pharmaceutical and biotechnology companies to manage the creation, review, approval and distribution of compliant promotional content. By embedding agentic AI directly into this workflow, Veeva enhances the functionality of an already mission-critical application, increasing customer value while making its commercial content ecosystem more intelligent and difficult to replace. The addition of Falcon MLR also complements Veeva's broader Falcon AI portfolio, reinforcing the company's strategy of integrating AI capabilities across its cloud applications.

The acquisition of Copli further expands Veeva's AI expertise and accelerates the commercialization of agentic automation across the life sciences industry. As demand for AI-powered compliance and content management solutions continues to rise, Falcon MLR positions Veeva to capture incremental growth opportunities while strengthening its competitive moat in life sciences software.

Favorable Industry Prospect for VEEVPer a report by Grand View Research, the global agentic AI in healthcare market size was estimated at $538.51 million in 2024 and is projected to reach $4.96 billion by 2030, expanding at a CAGR of 45.56%.

The rising automation of repetitive tasks, growing focus on cost and resource optimization, and increasing adoption of enhanced patient care solutions are factors contributing to market growth. 

A Recent Development by VEEVRecently, VEEV announced the launch of Veeva EHS, a new environmental, health and safety application within its Veeva Quality Cloud. The solution is designed to help manufacturing and testing sites proactively identify, manage and mitigate operational and environmental risks while strengthening global compliance readiness.

Management stated that Veeva EHS delivers an advanced and automated approach to environmental, health and safety processes. It enables EHS teams to free up time and ensures quick and accurate execution.

VEEV’s Zacks Rank & Key PicksCurrently, VEEV carries a Zacks Rank #3 (Hold).

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

Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, currently flaunting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Key Takeaways Microchip introduced DSA504RT, a radiation-tolerant clock generator for aerospace and defense systems. DSA504RT generates six phase-aligned outputs from one source, reducing oscillators and component count. The device lowers the bill of materials and screening costs while reducing program risk. Microchip Technology (MCHP - Free Report)  has introduced the DSA504RT, a space-grade, radiation-tolerant programmable clock generator with six outputs, developed to meet the demanding timing requirements of aerospace and defense applications.

The DSA504RT simplifies timing architecture by generating multiple clean, phase-aligned frequencies from a single master source. The device minimizes the need for multiple discrete oscillators, reduces the overall component count and enhances system failure in time rate. It also lowers power consumption and mass while simplifying distribution networks to keep subsystems synchronized, even in harsh operating environments and during GNSS outages or disruptions.

The clock generator incorporates an Analog Phase-Locked Loop (“APLL”) with spread spectrum capability, two fractional dividers, two integer dividers and six highly configurable output buffers. Each output buffer can function either as a differential driver supporting LVPECL, LVDS or HCSL standards or as a pair of single-ended CMOS outputs. The DSA504RT delivers ultra-low jitter performance of as little as 200 femtoseconds (12 kHz–20 MHz) and complies with PCIe Gen 1-7 standards. Its high level of integration enables engineers to replace multiple crystals, oscillators and buffers with a single device, thereby improving design reliability while reducing both bill of materials costs and overall design complexity.

Available in QFN28 and CQFP32 packages, the DSA504RT is designed as a companion device for complex aerospace and defense systems. It enables highly integrated clock architectures on a single chip while distributing precise timing references to subsystems based on radiation-tolerant or radiation-hardened FPGAs and MCUs.

By adding a cost-effective, space-grade device to its established clock product family, Microchip aims to deliver premium timing performance while lowering overall bill of materials and screening costs. The company also noted that customers can remain within its radiation-qualified ecosystem, benefiting from its space heritage, documentation and global technical support to accelerate development and reduce program risk.

Taking a Look at Launches by Other Tech CompaniesIn 2025, SiTime Corporation (SITM - Free Report) , a provider of precision timing solutions, announced the launch of its TimeFabric software suite. When combined with SiTime’s oscillators and clocks, the software delivers up to nine times greater time-synchronization accuracy than conventional quartz-based solutions, helping improve system performance and resource utilization in AI data centers.

The TimeFabric software suite, launched by SiTime, comprises two key modules: synchronization software that complies with IEEE 1588 standards and proprietary technology that extends critical holdover performance to up to 24 hours. Together, these capabilities support highly accurate and resilient timing across advanced computing and networking environments.

In 2024, Adtran (ADTN - Free Report) launched its Oscilloquartz Time Scale System, developed to meet the precise timekeeping requirements of national metrology institutes, scientific research facilities and other applications demanding the highest levels of accuracy and traceability. Adtran’s Oscilloquartz Time Scale System delivers exceptional timekeeping by integrating up to eight different clock types, including optical cesium atomic clocks, hydrogen maser clocks and GNSS receivers, into a single, stable time scale. Similar to Microchip’s recently launched TimePictra 12 platform, Adtran’s launch focuses on helping operators manage increasingly complex synchronization environments while improving resilience and timing accuracy.

MCHP’s Price Performance, Valuation & EstimatesShares of MCHP have gained in double digits (% wise) over the past six months, but lagged the Zacks Semiconductor-Analog-and-Mixed industry’s return.

6-Month Price ComparisonImage Source: Zacks Investment Research

In terms of forward 12-month Price/Sales (P/S), Microchip is trading at a discount compared with its industry.

Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for MCHP’s earnings has been revised over the past 90 days.

Image Source: Zacks Investment Research

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

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SpaceX Stock Will Join The Nasdaq-100 Index On July 7

This Unlikely Growth Stock Is Breaking Out. It Has Nothing To Do With AI — Yet

Stock Market Week Ahead: Rotating, For Now, Away From The AI Boom FuelCell Energy (FCEL) announced it secured key government financing on Monday and received a massive price-target hike. Meanwhile, Bloom Energy (BE) graduated to a large-cap Russell index. Intraday, FuelCell Energy stock flashed a bullish signal as it broke out. Bloom Energy stock rebounded sharply from Friday's slide. The Export-Import Bank of the United States approved a $49 million financing package…

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Key Takeaways EVRG plans to invest $21.6B from 2026 to 2030 to modernize and expand its grid infrastructure. Commercial sales rose 3.8%, industrial sales grew 10.1% and residential sales advanced 3.3%.EVRG signed five ESA projects totaling 2.5 GW and sees more peak-load demand opportunities. Evergy, Inc. (EVRG - Free Report) benefits from its extensive transmission and distribution network, which supports reliable electricity delivery across its service territories. The company plans to invest $21.6 billion between 2026 and 2030 to modernize and expand its grid infrastructure, helping meet rising electricity demand across its Kansas and Missouri service areas.

Evergy delivered strong first-quarter 2026 results as commercial sales increased 3.8%, industrial sales rose 10.1% and residential sales advanced 3.3%, highlighting healthy underlying electricity demand and continued customer growth across its service territory.

EVRG’s extensive transmission and distribution network positions the company to reliably serve rising power demand from data centers and advanced manufacturing facilities. In first-quarter 2026, the company signed Electric Service Agreements (“ESA”) for five projects totaling 2.5 gigawatt (GW) of peak load. The company also expects 1-1.5 GW of expansion opportunities with current ESA customers and is in advanced discussions with prospective customers representing an additional 1.5-3 GW of peak demand.

Evergy’s long-term capital investment strategy focuses on strengthening its transmission and distribution networks. These investments are expected to drive rate-base growth of 11.5% through 2030, while the company continues to project its long-term adjusted earnings per share growth target to 6-8% through 2030.

A widespread transmission and distribution network enables EVRG to deliver reliable electricity service to customers and support large-load projects, such as EV battery manufacturing units and semiconductor plants. Strong electric infrastructure improves operational reliability and provides a foundation for sustainable earnings and long-term growth.

Strategic Expenditure Plan Boosts Grid NetworkA strategic capital expenditure plan strengthens the overall network through investments in transmission, distribution and grid modernization. These investments improve reliability, replace aging infrastructure, expand system capacity, support rising electricity demand, grow the regulated rate base and drive sustainable long-term earnings growth.

Exelon Corporation (EXC - Free Report) plans to invest $41.7 billion during 2026-2029 to strengthen its distribution, transmission and gas delivery infrastructure, enhance grid reliability, expand its regulated asset base and support sustainable long-term earnings growth.

Entergy Corporation (ETR - Free Report) aims to invest $57 billion in 2026-2029 to serve rising customer needs and expand the generation, transmission and distribution network.

EVRG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 10.97% and 7.01%, respectively, year over year.

Image Source: Zacks Investment Research

EVRG’s Stock Trading at a PremiumEVRG is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 19.83X compared with the industry average of 16.03X.

Image Source: Zacks Investment Research

EVRG’s Stock Price PerformanceIn the past month, the company’s shares have risen 5.9% compared with the industry’s 4.8% growth.

Image Source: Zacks Investment Research

EVRG’s Zacks Rank

Key Takeaways KLA is positioned to outgrow the WFE market as AI boosts foundry, logic and memory investments.KLA projects WFE spending to reach about $140B in 2026 and roughly $215B, plus or minus $20B, by 2030.KLA lifted its process-control share to 58% in 2025, gaining 360 basis points since 2021. KLA Corporation (KLAC - Free Report) is benefiting from a new wave of artificial intelligence (AI)-driven semiconductor investment and appears well positioned to continue outperforming the broader wafer fabrication equipment (WFE) market as the current investment cycle matures. While semiconductor equipment demand remains supported by AI infrastructure spending, the company also has structural growth drivers that could allow it to grow faster than the overall WFE market through 2027 and beyond.

The investment cycle is becoming broader than previous upcycles. AI deployment is driving spending across leading-edge foundry and logic capacity, while high-bandwidth memory and advanced DRAM are supporting memory investments. Rather than depending on a single end market, KLA is gaining from demand across foundry, logic and memory, all of which require increasingly sophisticated inspection and metrology solutions. The company expects these trends to support continued expansion in WFE spending. KLA projects the WFE market to reach approximately $140 billion in calendar 2026. Looking further ahead, it expects the market to expand to roughly $215 billion, plus or minus $20 billion, by 2030, representing growth that outpaces the broader semiconductor industry.

KLA’s ability to outgrow WFE rests on its stronger exposure to process control, not just higher industry spending. As chip designs become more complex, customers need more inspection, metrology and yield-management tools across development, ramp and high-volume manufacturing. KLA’s updated 2030 framework assumes the process-control market will grow faster than overall WFE, supported by advanced packaging, services growth of 13-15% annually and more than 150 basis points of additional WFE share gains over time.

KLA already enters this cycle from a position of strength. According to third-party industry data highlighted during Investor Day, the company increased its semiconductor process-control market share to 58% in 2025, up 360 basis points since 2021. The gains were driven by leadership in optical inspection, e-beam inspection, mask inspection and advanced wafer-level packaging process control, where KLA also achieved the industry’s top market position.

KLA’s expanding process-control intensity, rising market share, growing advanced packaging exposure and resilient services business provide multiple avenues for growth beyond industry averages. If AI-driven semiconductor complexity continues increasing as expected, the company's differentiated technology portfolio could allow it to keep outgrowing the WFE market through 2027 and remain one of the industry's strongest long-term beneficiaries.

How Do Competitors Compare With KLA's WFE Growth Opportunity?KLA's closest process-control peers, Onto Innovation (ONTO - Free Report) and Nova Ltd. (NVMI - Free Report) , are also benefiting from the AI-driven semiconductor investment cycle and expect to outgrow the broader wafer fabrication equipment (WFE) market. However, their growth strategies remain more focused on specific technology niches, while KLA benefits from a broader process-control franchise spanning inspection, metrology, advanced packaging and services.

Onto Innovation is capitalizing on rising demand for advanced packaging and advanced-node process control, supported by growing adoption of its Dragonfly G5 inspection platform and Atlas G6 metrology systems. ONTO expects advanced packaging revenue to grow more than 50% in 2026 and anticipates its advanced-node business will expand faster than the overall WFE market, driven by AI-related investments in logic, DRAM and high-bandwidth memory. Management also expects to continue outgrowing WFE into 2027 as new products and customer wins gain traction.

Nova is similarly benefiting from rising AI-driven investments across logic, memory and advanced packaging. The company reported record demand for advanced DRAM, gate-all-around applications and advanced packaging, while highlighting that growing manufacturing complexity is increasing process-control and metrology intensity. Nova expects to outperform mid-teen WFE growth, supported by market-share gains, broader customer adoption and expanding exposure to advanced packaging and hybrid bonding technologies.

KLA’s Stock Price Performance, Valuation & EstimatesShares of KLA have surged 177.6% over the past year, outperforming the industry, as shown below.

KLAC One-Year Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, KLA trades at a forward price-to-earnings (P/E) multiple of 50.18, significantly above the industry’s average, as shown below.

KLAC’s P/E Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KLA’s fiscal 2026 and 2027 earnings per share (EPS) implies a year-over-year increase of 11.4% and 34.3%, respectively. The EPS estimates for fiscal 2026 and 2027 have risen in the past 60 days, respectively.

EPS Trend of KLAC Stock

Image Source: Zacks Investment Research

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

Wendy's (WEN +4.10%) stock has been rallying of late, prompting some to wonder if another meme-fueled rally could be underway. The fast-food giant hasn't been taken seriously in recent years as a top investment option; in five years, its valuation has crashed by a whopping 65%.

Amid its decline this year, its dividend yield has shot up to a mouthwatering 7.1%, which is well above the S&P 500 average of only 1.1%. If the payout is safe, that could provide investors with some incentive to buy and hold. But is the dividend really sustainable, and if it is, should you buy Wendy's stock?

Image source: Getty Images.

What do the company's recent financials say? Wendy's has a payout ratio of around 73%, but it's always a good idea to look at the most recent results to get a good indication of its financial strength. Earnings, after all, can get distorted due to one-time gains or losses. Taking a closer look can be imperative to see what's really going on with the business.

During the first three months of the year, the restaurant company's revenue rose by a modest 3% to $540.6 million. While the growth was a good sign, what was problematic was the company's worsening bottom line, with net income of $22.7 million declining by a staggering 42%, as costs rose at a faster pace than revenue.

The key number to focus on is the per-share profit, which totaled $0.12. That's slightly below the $0.14 that the company pays in dividends per share. Last year, the company slashed its dividend, previously paying $0.25 per quarter. If its financials don't improve significantly, there could be another cut around the corner.

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Why I don't expect the dividend to remain this high Wendy's may offer a high yield, but I wouldn't rely on it remaining intact. Not only are its earnings per share less than what the company is paying in dividends right now, but it's also in the midst of a turnaround. The company may need to use cash flow to strengthen its business and fund expansion efforts, including opening up to 1,000 restaurants in China. Maintaining this high of a payout, or any payout at all for that matter, may not be sustainable over the long haul.

Although the yield may be tempting, minimizing risk is key for dividend investors because if that dividend income disappears, there may not be much of a reason for holding onto the stock anymore, and it could fall sharply. With falling profits and an ambitious long-term strategy ahead, staying on the sidelines and taking a wait-and-see approach with Wendy's stock may be the best move right now.

Key Takeaways Humana's CenterWell posted $6.1B in Q1 2026 revenues, up 19.7%, with growth across all business lines.HUM added patients and centers via MaxHealth and expanded pharmacy services through the Cost Plus partnership.HUM expects CenterWell to generate at least $25B in 2026 revenues as it grows beyond insurance. CenterWell is playing a growing role in Humana Inc.'s (HUM - Free Report) strategy to evolve beyond its traditional health insurance business. By combining primary care, home health and pharmacy services under one platform, CenterWell helps HUM deliver more coordinated care while supporting better health outcomes and improving the overall patient experience.

The segment is also emerging as a meaningful growth driver. In the first quarter of 2026, CenterWell generated $6.1 billion in revenues, up 19.7% year over year, reflecting growth across all three business lines. Higher Medicare enrollment and continued expansion of its payor-agnostic client base contributed to the increase. HUM expects the segment’s total revenues to generate at least $25 billion in 2026.

Humana is further strengthening CenterWell's platform through strategic investments and acquisitions. During the first quarter, CenterWell Senior Primary Care recorded sequential patient growth of 110,500, including approximately 59,000 patients and 54 centers from the recent MaxHealth acquisition. The expansion broadens the company's primary care network while creating additional opportunities to deliver coordinated, value-based care. HUM is also broadening its pharmacy capabilities through its Cost Plus partnership, which aims to develop end-to-end prescription drug solutions for employers.

HUM is also improving operational efficiency by increasing automation and using AI-enabled analytics to identify care gaps, accelerate chronic disease detection and support more proactive care management. These initiatives can improve clinical outcomes while enhancing productivity across the platform. As CenterWell continues to expand its care delivery network and technology capabilities, it is evolving into a key long-term growth engine that diversifies Humana's business beyond health insurance while supporting sustainable earnings growth.

How Are Competitors Faring?Some of HUM’s major competitors in the value-based care space are UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) .

UnitedHealth, through its Optum segment, is scaling AI-driven care management, pharmacy and provider solutions to improve care coordination and operational efficiency. Its integrated care model supports value-based reimbursement while diversifying revenues beyond its insurance business. UnitedHealth’s total revenues rose 2% year over year in the first quarter of 2026.

Elevance Health is pursuing a similar strategy through Carelon, its healthcare services platform. Carelon combines pharmacy, care delivery and care management capabilities to diversify revenues beyond health insurance. Elevance Health’s total operating revenues rose 1.5% year over year in the first quarter of 2026.

Humana’s Price Performance, Valuation & EstimatesShares of HUM have rallied 49.9% in the year-to-date period compared with the industry’s rise of 8.2%.

Image Source: Zacks Investment Research

From a valuation standpoint, Humana trades at a forward price-to-earnings ratio of 32.09, significantly above the industry average of 16.80. HUM carries a Value Score of B.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.01 per share, implying a 47.4% drop from the year-ago period.

Image Source: Zacks Investment Research

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

Key Takeaways ARM introduced the AGI CPU to improve efficiency and performance for AI data center workloads.Arm said demand has exceeded launch expectations from cloud, telecom, and enterprise AI customers.ARM noted that Arm-based processors now account for about half of CPU deployments at major hyperscalers. Arm Holdings (ARM - Free Report) is stepping up its ambitions in AI infrastructure with the Arm AGI CPU, a processor purpose-built for the emerging era of agentic AI workloads. The company believes the shift from traditional AI queries to continuously operating AI agents will significantly increase computing demand inside data centers, creating a substantial long-term growth opportunity.

The Arm AGI CPU is designed as a high-efficiency alternative to conventional x86 processors. The company says the new chip delivers meaningfully higher rack-level performance while improving overall infrastructure economics. It also believes its architecture can help customers reduce capital expenditures while scaling AI workloads more efficiently across cloud and enterprise environments.

The launch reflects Arm Holdings' broader strategy to extend beyond its traditional licensing business and strengthen its position within the AI hardware ecosystem. The company is increasingly positioning its architecture not only as a foundational technology layer but also as a scalable platform powering the next generation of AI infrastructure.

Cloud Giants Deepen Arm AdoptionMomentum behind the ARM platform continues to build among hyperscalers and AI infrastructure providers. NVIDIA (NVDA - Free Report) highlighted deeper integration of Arm-based CPUs across its next-generation AI systems and introduced its Vera CPU platform to enhance utilization and performance in AI environments. NVIDIA's expanding collaboration with Arm reinforces the growing importance of Arm-based computing within large-scale AI clusters.

Alphabet's (GOOGL - Free Report) Google is also advancing its Arm strategy by integrating custom Axion CPUs into future TPU systems. The company stated that its next-generation TPU infrastructure will replace legacy x86 host processors with Arm-based designs to improve efficiency and training economics. Google's continued commitment further reinforces confidence in Arm Holdings' expanding role within the future of cloud AI infrastructure.

Demand Pipeline Continues to StrengthenArm Holdings stated that customer demand for the AGI CPU has already exceeded its initial launch expectations, driven by interest from cloud service providers, telecom infrastructure companies, and enterprise AI customers. The company also noted that Arm-based processors now account for approximately half of CPU deployments among major hyperscale cloud providers.

Beyond Google and NVIDIA, industry leaders including AWS, Microsoft, Oracle, Samsung, Micron and SK Hynix continue expanding support for the broader Arm ecosystem. As global investment in AI infrastructure accelerates, Arm Holdings is positioning itself as a core architecture provider for the next generation of intelligent data centers.

ARM’s Price Performance, Valuation, EstimatesThe stock has gained 107% over the past year compared with the industry’s 80% growth.

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From a valuation standpoint, ARM trades at a forward price-to-sales ratio of 54.78X, well above the industry’s 9.61X. It carries a Value Score of F.

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The Zacks Consensus Estimate for the company’s fiscal 2027 earnings has remained unchanged over the past 30 days.

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

Key Takeaways CoreWeave signed a colocation deal with Conapto covering two renewable-powered Stockholm campuses. CRWV will deploy NVIDIA Blackwell and Vera Rubin platforms with Quantum-X800 InfiniBand networking.CoreWeave now operates eight European sites, expanding AI cloud capacity for regional customers. CoreWeave, Inc. (CRWV - Free Report) has announced a new colocation agreement with Conapto, a provider of scalable, secure and sustainable data center solutions. The partnership covers two data center campuses in Stockholm, Sweden, with initial capacity already operational at the Stockholm 4 South facility. Both campuses will be powered by renewable energy, supporting CoreWeave's efforts to expand its AI cloud infrastructure in Europe while maintaining a focus on sustainability.

The Stockholm deployment will provide AI companies and developers with access to CoreWeave's AI cloud platform, which is designed to support the growing demands of modern AI applications. The platform integrates high-performance computing, networking, storage and software orchestration, enabling customers to efficiently scale AI development and deployment. The agreement strengthens CoreWeave's ability to support customers across Europe and aligns with its measured approach to boosting its international infrastructure footprint.

The new capacity will be powered by NVIDIA Blackwell Architecture and NVIDIA Vera Rubin Platforms connected through NVIDIA Quantum-X800 InfiniBand networking. This deployment further expands CoreWeave's presence across Europe as demand from AI research labs, enterprises and developers continues to increase. With AI workloads increasingly transitioning from experimentation to production, organizations across the region require readily available, high-performance infrastructure capable of supporting large-scale deployments. The expansion also continues CoreWeave's practice of providing European customers with access to its latest available technologies.

CoreWeave also stated that nine of the world's 10 leading foundation model providers currently use its AI cloud platform. As of March 31, 2026, the company operated 49 data centers worldwide, supported by more than one gigawatt of active power and over 3.5 gigawatts of contracted power dedicated to AI workloads. With the addition of the Conapto facilities, CoreWeave now has eight operational sites across Europe.

The company highlighted the performance of its AI cloud platform, citing record MLPerf benchmark results for AI training and inference, its Platinum ranking in both SemiAnalysis ClusterMAX 1.0 and 2.0, and its top ranking for inference speed and price-performance for Moonshot AI's Kimi K2.6 and Kimi K2.7 Code models in independent benchmarking conducted by Artificial Analysis.

Taking a Look at CRWV’s CompetitorsNebius Group N.V. (NBIS - Free Report) is gaining momentum through its expanding partnership with NVIDIA, which has strengthened its position in the fast-growing AI infrastructure market. The company recently achieved NVIDIA Exemplar Cloud status for GB300 training workloads and deepened its collaboration across multiple GPU generations, enhancing its AI cloud capabilities. Strategic acquisitions, including Tavily, Eigen AI and Clarifai, have further expanded its inference, search and agentic AI offerings. Backed by strong customer demand and rapid capacity expansion to a targeted 4 GW of contracted power, Nebius is well-positioned to deliver its ambitious 2026 revenue goals while reinforcing its leadership in AI-native cloud infrastructure.

Amazon.com Inc. (AMZN - Free Report) is gaining from its aggressive international expansion, diversified business model and growing AI capabilities. The company continues expanding its logistics network across Asia, Europe and Latin America, driving higher international sales and profitability. AWS remains a major growth engine, supported by rising enterprise demand for AI services, while the advertising business continues delivering strong revenue growth. Amazon is also benefiting from partnerships with OpenAI and Anthropic, which have committed to using AWS Trainium capacity, reinforcing its AI infrastructure business. Together with AI-powered improvements across e-commerce and logistics, these initiatives strengthen Amazon's long-term growth prospects and competitive position.

CRWV Price Performance, Valuation and EstimatesShares of CoreWeave have gained 30.7% in the past six months against the Internet Software industry’s fall of 17.3%.

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In terms of Price/Book, CRWV’s shares are trading at 8.99X, higher than the Internet Software Services industry’s 4.29X.

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The Zacks Consensus Estimate for CRWV’s earnings for the current year has been revised downward over the past 60 days.

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