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June 29, 2026 02:00 ET  | Source: Verizon Communications, Inc.

BT Group and Verizon agree to combine their respective international operations in a 50:50 joint venture, creating a new company focused on multinational connectivity.The joint venture will serve more than 3,000 customers across more than 180 countries, representing approx. $4 billion in combined annual revenue.The combination of international networking businesses creates a future-ready, scaled organization underpinned by a new platform designed for the age of cloud and AI.Martijn Blanken is appointed Chief Executive Officer-designate of the new joint venture, conditional on completion of the transaction.The transaction is expected to complete in 2027, subject to regulatory clearances and other customary closing conditions. LONDON and NEW YORK, June 29, 2026 (GLOBE NEWSWIRE) -- BT Group (BT) and Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced the signing of an agreement to combine their respective international enterprise operations into a 50:50 joint venture – in a move that is set to transform international connectivity.

The new joint venture will focus on serving multinational organizations. It is expected to serve more than 3,000 customers across more than 180 countries, representing approximately $4 billion in combined annual revenue. This breadth of operations will unlock significant scale efficiencies across the combined global network and service operations following completion.

Designed specifically for a cloud-first world in the age of AI, the joint venture brings together BT International, which serves multinational customers with secure and resilient communication and network services around the world, with Verizon’s international enterprise wireline arm, which provides secure connectivity to enterprises worldwide. Both BT and Verizon will hold equal voting rights and Verizon has agreed to pay BT an equalization payment of $625 million.

By combining global scale with infrastructure designed and built to support local compliance and sovereignty needs, the joint venture will create a stronger platform for growth and accelerate the rollout of next-generation connectivity platforms. Customers will benefit from secure and resilient connectivity designed to meet data, operational and regulatory requirements.

At the same time, the parent companies will be better able to focus on their domestic markets, while providing support to the new joint venture as equal shareholders.

BT and Verizon have also today confirmed that Martijn Blanken has been appointed Chief Executive Officer-designate of the new joint venture, conditional on the completion of the transaction. Martijn has almost three decades in senior leadership positions across telecommunications, technology and digital infrastructure at Telstra, Openwave Systems, EXA Infrastructure and KPN, and a career spanning four continents. From September 1, 2026, he will join BT and will work with both parent companies, while observing relevant regulatory requirements, as they prepare for the launch of the proposed joint venture.

Clive Selley will continue to lead BT International as CEO, ensuring continuity of BT International’s ongoing transformation in readiness for the creation of the joint venture. Verizon’s leadership remains unchanged.

Allison Kirkby, Chief Executive of BT Group, said: “The world’s leading brands and international organizations trust BT International to connect them across the world. Bringing together this expertise and heritage with Verizon’s deep relationships with multinationals will create a stronger, scaled connectivity partner – one that has the reach, innovation and investment to succeed. Customers will benefit from new, secure and resilient connectivity platforms which are designed for the age of AI and sovereign where it matters. It will create new opportunities for our people and long-term value for our owners. Today’s announcement marks a major milestone for BT International, and an important step forward for BT as a whole, as we deliver on our U.K.-focused strategy.”

Dan Schulman, CEO of Verizon, said: "Our international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments. When we thought about how to best support them, this joint venture was the clear answer: a cutting-edge, AI-ready and secure platform run by a single global organization dedicated to their needs. At the same time, our relationship with those customers will stay equally strong as we continue to directly provide them with the connectivity they need in the U.S."

The transaction is subject to regulatory clearances and consultation with employee representations in countries where required. BT and Verizon’s international businesses will continue to operate independently until the transaction officially closes with a full commitment to their respective customers.

Additional information

The new joint venture will be incorporated in the Bailiwick of Jersey and headquartered and tax resident in the United Kingdom.On completion of the transaction, the new joint venture will establish commercial relationships with both BT and Verizon – providing a seamless, end-to-end service across borders including for our customers in the U.K. (BT) and the U.S. (Verizon).Goldman Sachs acted as lead financial advisor to BT, with Deloitte transaction services advisor and Freshfields LLP as legal counsel. Morgan Stanley & Co. LLC acted as financial advisors to Verizon and Kirkland & Ellis LLP acted as legal counsel. Verizon Forward-Looking Statements

This communication contains forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include those regarding our possible or assumed future results of operations and those regarding our ability to consummate the proposed transaction with BT Group plc and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all. Forward-looking statements also include those preceded or followed by the words "anticipates," "assumes," "believes," "estimates," "expects," "forecasts," "hopes," "intends," "plans," "targets," “will” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

This announcement was originally published by Verizon. Read the original press release.

About BT Group

BT Group is the U.K.’s leading provider of fixed and mobile telecommunications and related secure digital products, solutions and services.

BT Group consists of four customer-facing units:  Consumer serves individuals and families in the U.K.; Business covers companies and public services in the U.K.; International serves multinational organisations headquartered outside the U.K. and overseas public sector customers; Openreach is an independently governed, wholly owned subsidiary wholesaling fixed access infrastructure services to its customers – over 700 communications providers across the U.K.

British Telecommunications Limited is a wholly owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange.

For more information, visit www.bt.com/about

About Verizon

Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $138.2 billion in 2025. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores

VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.

Media contacts:
Sarah Heinz (Verizon)
[email protected]
347-931-6300

If approved, upadacitinib is expected to be the first systemic medication for patients with non-segmental vitiligo, addressing important treatment needs for those living with the chronic, unpredictable autoimmune disease Positive CHMP opinion is supported by data from the Phase 3 Viti-Up clinical studies, in which upadacitinib achieved both co-primary endpoints demonstrating at least a 50% improvement in total body repigmentation (T-VASI 50) and at least a 75% improvement in facial repigmentation (F-VASI 75) from baseline at week 481 , /PRNewswire/ -- AbbVie (NYSE: ABBV) today announced that the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has adopted a positive opinion recommending the approval of upadacitinib (RINVOQ®; 15 mg, once daily) for the treatment of adult and adolescent patients with non-segmental vitiligo (NSV). The final European Commission decision is expected in the coming months. If approved, upadacitinib is expected to be the first systemic medication for patients with non-segmental vitiligo.

"Vitiligo is an autoimmune skin disease with high stigma and significant burden to patients with limited treatment options available," said Roopal Thakkar, M.D., executive vice president, research and development, chief scientific officer, AbbVie. "A positive opinion for upadacitinib in non-segmental vitiligo is an important step forward in providing patients with a systemic treatment option."

The CHMP positive opinion is supported by data from the ongoing Phase 3 Viti-Up clinical program, including two replicate, randomized, placebo-controlled, double-blind studies evaluating the efficacy and safety of upadacitinib in adult and adolescent patients with NSV. Upadacitinib 15 mg met both co-primary endpoints and key secondary endpoints, with significant improvements in total body and facial repigmentation.1 The safety profile of upadacitinib 15 mg was consistent with that observed in approved indications, with no new safety signals.1

Upadacitinib is approved in the European Union (EU) for the treatment of adults and adolescents with atopic dermatitis, and adults with radiographic axial spondylarthritis, non-radiographic axial spondylarthritis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, Crohn's disease, and giant cell arteritis. Use of upadacitinib in NSV is not currently approved in the EU.

About Vitiligo
Vitiligo is a chronic, autoimmune disease characterized by the loss of pigment-producing cells (melanocytes), resulting in white patches of skin that can appear anywhere on the body and at any time.2 It imposes a significant psychosocial burden, profoundly affecting an individual's confidence, identity and daily life.3 Non-segmental vitiligo (NSV), the most common form of vitiligo afflicting approximately 84% of patients, is marked by symmetrical and bilateral depigmented white patches and is prone to unpredictable progression even after long periods of stability.2,4-6 While location varies, many patients report patches on critical areas such as the face, feet, hands and groin. Despite its immune-mediated nature, vitiligo is often considered primarily a cosmetic problem, which can lead to stigma and psychological impact on patients' lives.7-9 Vitiligo management is anchored in three primary treatment goals: disease stabilization, repigmentation, and maintaining repigmentation.10,11 There are currently no approved systemic medicines specifically indicated for these treatment goals in vitiligo.

About Viti-Up Clinical Trials
Upadacitinib M19-044 was conducted under a single protocol encompassing two replicate Phase 3 studies (Study 1 and Study 2) with independent randomization, investigative sites, data collection, analysis and reporting for each study. The trials were designed to evaluate the efficacy, safety and tolerability of upadacitinib in adult and adolescent patients (ages 12 and older) living with non-segmental vitiligo (NSV) who were eligible for systemic therapy. In Period A of both studies, participants were randomized in a 2:1 ratio to receive either upadacitinib 15 mg once daily or placebo for 48 weeks. Participants who completed Period A were eligible to enter Period B, a 112-week open-label extension in which all patients received upadacitinib 15 mg once daily. In total, Study 1 and Study 2 Periods A and B span 160 weeks. The two trials randomized 614 participants with NSV across 90 sites worldwide. More information on these trials can be found at www.clinicaltrials.gov (NCT06118411).

The co-primary endpoints were based on the achievement of Total Vitiligo Area Scoring Index (T-VASI) 50, defined as at least 50% reduction in T-VASI from baseline, at week 48, and the achievement of Facial Vitiligo Area Scoring Index (F-VASI) 75, defined as at least 75% reduction in F-VASI from baseline, at week 48 with the treatment of upadacitinib 15 mg compared with placebo in adults and adolescents with NSV.

The secondary endpoints include the achievement of F-VASI 50, defined as at least a 50% reduction in F-VASI from baseline, at week 48, and the achievement of F-VASI 75, defined as at least a 75% reduction in facial vitiligo area from baseline, at week 24. These endpoints were designed to assess the degree and timing of re-pigmentation on the face, an area among the most visible and psychosocially impactful for people living with NSV.

About RINVOQ® (upadacitinib)
Discovered and developed by AbbVie scientists, RINVOQ is a JAK inhibitor that is being studied in several immune-mediated inflammatory diseases. Based on enzymatic and cellular assays, RINVOQ demonstrated greater inhibitory potency for JAK-1 vs JAK-2, JAK-3, and TYK-2. The relevance of inhibition of specific JAK enzymes to therapeutic effectiveness and safety is not currently known.

Upadacitinib (RINVOQ) is being studied in Phase 3 clinical trials for alopecia areata, hidradenitis suppurativa, Takayasu arteritis, systemic lupus erythematosus, and vitiligo. The use of upadacitinib in non-segmental vitiligo is not approved; its safety and efficacy are under regulatory review by the U.S. FDA and the European Medicines Agency.

EU Indications and Important Safety Information about RINVOQ® (upadacitinib)12

Indications

Rheumatoid arthritis

RINVOQ is indicated for the treatment of moderate to severe active rheumatoid arthritis (RA) in adult patients who have responded inadequately to, or who are intolerant to one or more disease-modifying anti-rheumatic drugs (DMARDs). RINVOQ may be used as monotherapy or in combination with methotrexate.

Psoriatic arthritis

RINVOQ is indicated for the treatment of active psoriatic arthritis (PsA) in adult patients who have responded inadequately to, or who are intolerant to one or more DMARDs. RINVOQ may be used as monotherapy or in combination with methotrexate.

Axial spondyloarthritis

Non-radiographic axial spondyloarthritis (nr-axSpA)

RINVOQ is indicated for the treatment of active non-radiographic axial spondyloarthritis in adult patients with objective signs of inflammation as indicated by elevated C-reactive protein (CRP) and/or magnetic resonance imaging (MRI), who have responded inadequately to nonsteroidal anti-inflammatory drugs (NSAIDs).

Ankylosing spondylitis (AS, radiographic axial spondyloarthritis)

RINVOQ is indicated for the treatment of active ankylosing spondylitis in adult patients who have responded inadequately to conventional therapy.

Giant cell arteritis

RINVOQ is indicated for the treatment of giant cell arteritis (GCA) in adult patients.

Atopic dermatitis

RINVOQ is indicated for the treatment of moderate to severe atopic dermatitis (AD) in adults and adolescents 12 years and older who are candidates for systemic therapy.

Ulcerative colitis

RINVOQ is indicated for the treatment of adult patients with moderately to severely active ulcerative colitis (UC) who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent.

Crohn's disease

RINVOQ is indicated for the treatment of adult patients with moderately to severely active Crohn's disease who have had an inadequate response, lost response or were intolerant to either conventional therapy or a biologic agent.

Important Safety Information

Contraindications
RINVOQ is contraindicated in patients hypersensitive to the active substance or to any of the excipients, in patients with active tuberculosis (TB) or active serious infections, in patients with severe hepatic impairment, and during pregnancy.

Special warnings and precautions for use
RINVOQ should only be used if no suitable treatment alternatives are available in patients:
- 65 years of age and older;
 - patients with history of atherosclerotic cardiovascular (CV) disease or other CV risk factors (such as current or past long-time smokers);
 - patients with malignancy risk factors (e.g. current malignancy or history of malignancy)

Use in patients 65 years of age and older
Considering the increased risk of MACE, malignancies, serious infections, and all-cause mortality in patients ≥65 years of age, as observed in a large randomised study of tofacitinib (another Janus Kinase (JAK) inhibitor), RINVOQ should only be used in these patients if no suitable treatment alternatives are available. In patients ≥65 years of age, there is an increased risk of adverse reactions with RINVOQ 30 mg once daily. Consequently, the recommended dose for long-term use in this patient population is 15 mg once daily.

Immunosuppressive medicinal products
Use in combination with other potent immunosuppressants is not recommended.

Serious infections
Serious and sometimes fatal infections have been reported in patients receiving RINVOQ. The most frequent serious infections reported included pneumonia and cellulitis. Cases of bacterial meningitis and sepsis have been reported with RINVOQ. Among opportunistic infections, TB, multidermatomal herpes zoster, oral/esophageal candidiasis, and cryptococcosis have been reported. RINVOQ should not be initiated in patients with an active, serious infection, including localized infections. RINVOQ should be interrupted if a patient develops a serious or opportunistic infection until the infection is controlled. A higher rate of serious infections was observed with RINVOQ 30 mg compared to 15 mg. As there is a higher incidence of infections in the elderly and patients with diabetes in general, caution should be used when treating these populations. In patients ≥65 years of age, RINVOQ should only be used if no suitable treatment alternatives are available.

Tuberculosis
Patients should be screened for TB before starting RINVOQ. RINVOQ should not be given to patients with active TB. Anti-TB therapy may be appropriate for select patients in consultation with a physician with expertise in the treatment of TB. Patients should be monitored for the development of signs and symptoms of TB.

Viral reactivation
Viral reactivation, including cases of herpes zoster, was reported in clinical studies. The risk of herpes zoster appears to be higher in Japanese patients treated with RINVOQ. Consider interruption of RINVOQ if the patient develops herpes zoster until the episode resolves. Screening for viral hepatitis and monitoring for reactivation should occur before and during therapy. If hepatitis B virus DNA is detected, a liver specialist should be consulted.

Vaccination
The use of live, attenuated vaccines during or immediately prior to therapy is not recommended. It is recommended that patients be brought up to date with all immunizations, including prophylactic zoster vaccinations, prior to initiating RINVOQ, in agreement with current immunization guidelines.

Malignancy
Lymphoma and other malignancies have been reported in patients receiving JAK inhibitors, including RINVOQ. In a large randomised active-controlled study of tofacitinib (another JAK inhibitor) in RA patients ≥50 years of age with ≥1 additional CV risk factor, a higher rate of malignancies, particularly lung cancer, lymphoma, and non-melanoma skin cancer (NMSC), was observed with tofacitinib compared to tumour necrosis factor (TNF) inhibitors. A higher rate of malignancies, including NMSC, was observed with RINVOQ 30 mg compared to 15 mg. Periodic skin examination is recommended for all patients, particularly those with risk factors for skin cancer. In patients ≥65 years of age, patients who are current or past long-time smokers, or patients with other malignancy risk factors (e.g., current malignancy or history of malignancy), RINVOQ should only be used if no suitable treatment alternatives are available.

Hematological abnormalities
Treatment should not be initiated, or should be temporarily interrupted, in patients with hematological abnormalities observed during routine patient management.

Gastrointestinal perforations
Events of diverticulitis and gastrointestinal perforations have been reported in clinical trials and from post-marketing sources. RINVOQ should be used with caution in patients who may be at risk for gastrointestinal perforation (e.g., patients with diverticular disease, a history of diverticulitis, or who are taking non-steroidal anti-inflammatory drugs (NSAIDs), corticosteroids, or opioids. Patients with active Crohn's disease are at increased risk for developing intestinal perforation. Patients presenting with new onset abdominal signs and symptoms should be evaluated promptly for early identification of diverticulitis or gastrointestinal perforation.

Major adverse cardiovascular events
MACE were observed in clinical studies of RINVOQ. In a large randomised active-controlled study of tofacitinib (another JAK inhibitor) in RA patients ≥50 years of age with ≥1 additional CV risk factor, a higher rate of MACE, defined as CV death, non-fatal myocardial infarction and non-fatal stroke, was observed with tofacitinib compared to TNF inhibitors. Therefore, in patients ≥65 years of age, patients who are current or past long-time smokers, and patients with history of atherosclerotic CV disease or other CV risk factors, RINVOQ should only be used if no suitable treatment alternatives are available.

Lipids
RINVOQ treatment was associated with dose-dependent increases in lipid parameters, including total cholesterol, low-density lipoprotein cholesterol, and high-density lipoprotein cholesterol.

Hepatic transaminase elevations
Treatment with RINVOQ was associated with an increased incidence of liver enzyme elevation. Hepatic transaminases must be evaluated at baseline and thereafter according to routine patient management. If alanine transaminase (ALT) or aspartate transaminase (AST) increases are observed and drug-induced liver injury is suspected, RINVOQ should be interrupted until this diagnosis is excluded.

Venous thromboembolism
Events of deep venous thrombosis (DVT) and pulmonary embolism (PE) were observed in clinical trials for RINVOQ. In a large randomised active-controlled study of tofacitinib (another JAK inhibitor) in RA patients ≥50 years of age with ≥1 additional CV risk factor, a dose‑dependent higher rate of VTE including DVT and PE was observed with tofacitinib compared to TNF inhibitors. In patients with CV or malignancy risk factors, RINVOQ should only be used if no suitable treatment alternatives are available. In patients with known VTE risk factors other than CV or malignancy risk factors (e.g. previous VTE, patients undergoing major surgery, immobilisation, use of combined hormonal contraceptives or hormone replacement therapy, and inherited coagulation disorder), RINVOQ should be used with caution. Patients should be re-evaluated periodically to assess for changes in VTE risk. Promptly evaluate patients with signs and symptoms of VTE and discontinue RINVOQ in patients with suspected VTE.

Retinal vein occlusion
Retinal vein occlusion has been reported in patients treated with JAK inhibitors, including upadacitinib. Patients should be advised to promptly seek medical care in case they experience symptoms suggestive of retinal vein occlusion.

Hypersensitivity reactions
Serious hypersensitivity reactions such as anaphylaxis and angioedema have been reported in patients receiving RINVOQ. If a clinically significant hypersensitivity reaction occurs, discontinue RINVOQ and institute appropriate therapy.

Hypoglycemia in patients treated for diabetes
There have been reports of hypoglycemia following initiation of JAK inhibitors, including RINVOQ, in patients receiving medication for diabetes. Dose adjustment of anti-diabetic medication may be necessary in the event that hypoglycemia occurs.

Medication Residue in Stool
Reports of medication residue in stool or ostomy output have occurred in patients taking RINVOQ. Most reports described anatomic (e.g., ileostomy, colostomy, intestinal resection) or functional gastrointestinal conditions with shortened gastrointestinal transit times. Patients should be instructed to contact their healthcare professional if medication residue is observed repeatedly. Patients should be clinically monitored, and alternative treatment should be considered if there is an inadequate therapeutic response.

Giant Cell Arteritis
RINVOQ monotherapy should not be used for the treatment of acute relapses as efficacy in this setting has not been established. Corticosteroids should be given according to medical judgement and practice guidelines.

Adverse reactions
The most commonly reported adverse reactions in RA, PsA, and axSpA clinical trials (≥2% of patients in at least one of the indications) with RINVOQ 15 mg were upper respiratory tract infections, blood creatine phosphokinase (CPK) increased, ALT increased, bronchitis, nausea, neutropenia, cough, AST increased, and hypercholesterolemia. Overall, the safety profile observed in patients with psoriatic arthritis or active axial spondyloarthritis treated with RINVOQ 15 mg was consistent with the safety profile observed in patients with RA.

The most commonly reported adverse reactions in AD trials (≥2% of patients) with RINVOQ 15 mg or 30 mg were upper respiratory tract infection, acne, herpes simplex, headache, blood CPK increased, cough, folliculitis, abdominal pain, nausea, neutropenia, pyrexia, and influenza. Dose dependent increased risks of infection and herpes zoster were observed with RINVOQ. The safety profile for RINVOQ 15 mg and 30 mg in adolescents was similar to that in adults. With long-term exposure, skin papilloma was reported in adolescents in the RINVOQ 15 mg and 30 mg groups.

The most commonly reported adverse reactions in the UC and CD trials (≥3% of patients) with RINVOQ 45 mg, 30 mg or 15 mg were upper respiratory tract infection, pyrexia, blood CPK increased, anemia, headache, acne, herpes zoster, neutropenia, rash, pneumonia, hypercholesterolemia, bronchitis, AST increased, fatigue, folliculitis, ALT increased, herpes simplex, and influenza. The overall safety profile observed in patients with UC was generally consistent with that observed in patients with RA. Overall, the safety profile observed in patients with CD treated with RINVOQ was consistent with the known safety profile for RINVOQ.

Overall, the safety profile observed in patients with GCA treated with RINVOQ 15 mg was generally consistent with the known safety profile for RINVOQ.

The most common serious adverse reactions were serious infections.

The safety profile of RINVOQ with long-term treatment was generally similar to the safety profile during the placebo-controlled period across indications.

This is not a complete summary of all safety information.

See RINVOQ full Summary of Product Characteristics (SmPC) at www.ema.europa.eu

Globally, prescribing information varies; refer to the individual country product label for complete information.

About AbbVie in Immunology
AbbVie is relentless in our pursuit to redefine the standard of care for patients living with immune-mediated conditions, with the goal of helping them live a life free from the limitations of their disease. For more than 20 years, AbbVie has led and helped shape the field of immunology through groundbreaking science and trusted medicines. Building on deep expertise across gastroenterology, rheumatology and dermatology, and other areas of high unmet need, we continue to invest in a broad and differentiated pipeline – spanning innovative modalities, novel mechanisms of actions and next-generation approaches designed to conquer the complex biology underlying immune-mediated disease.

Today, more than 1 million patients worldwide are treated with AbbVie's immunology medicines, approved in more than 175 countries across 19 immune-mediated diseases that impact adult and pediatric populations. As we work to strengthen our legacy and drive the next wave of innovation, we remain focused on delivering meaningful progress for patients and expanding access to our medicines. For more information, please visit www.abbvie.com/immunology.

About AbbVie
AbbVie's mission is to discover and deliver innovative medicines and solutions that solve serious health issues today and address the medical challenges of tomorrow. We strive to have a remarkable impact on people's lives across several key therapeutic areas including immunology, neuroscience and oncology – and products and services in our Allergan Aesthetics portfolio. For more information about AbbVie, please visit us at www.abbvie.com. Follow @abbvie on LinkedIn, Facebook, Instagram, X and YouTube.

Forward-Looking Statements

Some statements in this news release are, or may be considered, forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project" and similar expressions and uses of future or conditional verbs, generally identify forward-looking statements. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such risks and uncertainties include, but are not limited to, challenges to intellectual property, competition from other products, difficulties inherent in the research and development process, adverse litigation or government action, changes to laws and regulations applicable to our industry, the impact of global macroeconomic factors, such as economic downturns or uncertainty, international conflict, trade disputes and tariffs, and other uncertainties and risks associated with global business operations. Additional information about the economic, competitive, governmental, technological and other factors that may affect AbbVie's operations is set forth in Item 1A, "Risk Factors," of AbbVie's 2025 Annual Report on Form 10-K, which has been filed with the Securities and Exchange Commission, as updated by its Quarterly Reports on Form 10-Q and in other documents that AbbVie subsequently files with the Securities and Exchange Commission that update, supplement or supersede such information. AbbVie undertakes no obligation, and specifically declines, to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

References

AbbVie. Data on file ABVRRTI82545 Ezzedine K, Eleftheriadou V, Whitton M, van Geel N. Vitiligo. Lancet. 2015;386(9988):74-84. doi:10.1016/S0140-6736(14)60763-7 Krüger C, Schallreuter KU. A review of the worldwide prevalence of vitiligo in children/adolescents and adults. Int J Dermatol. 2012;51(10):1206-1212. doi:10.1111/j.1365-4632.2011.05377.x Mazzei Weiss ME. Vitiligo: to biopsy or not to biopsy?. Cutis. 2020;105(4):189-190. Ezzedine K, Lim HW, Suzuki T, et al. Revised classification/nomenclature of vitiligo and related issues: the Vitiligo Global Issues Consensus Conference. Pigment Cell Melanoma Res. 2012;25(3):E1-13 Taneja N, Sreenivas V, Sahni K, Gupta V, Ramam M. Disease Stability in Segmental and Non-Segmental Vitiligo. Indian Dermatol Online J. 2021 Aug 2;13(1):60-63. doi: 10.4103/idoj.IDOJ_154_21. PMID: 35198469; PMCID: PMC8809159 Hlača N, Žagar T, Kaštelan M, Brajac l, Prpić-Massari L. Current concepts of vitiligo immunopathogenesis. Biomedicines. 2022;10(7):1639. doi:10.3390/biomedicines10071639 Abdel-Malek ZA, Jordan C, Ho T, Upadhyay PR, Fleischer A, Hamzavi l. The enigma and challenges of vitiligo pathophysiology and treatment. Pigment Cell Melanoma Res. 2020;33(6):778-787. doi:10.1111/pcmr.12878 Birlea SA, Goldstein NB, Norris DA. Repigmentation through melanocyte regeneration in vitiligo. Dermatol Clin. 2017;35(2):205-218. doi:10.1016/j.det.2016.11.015 van Geel N, Speeckaert R, Taïeb A, et al. Worldwide expert recommendations for the diagnosis and management of vitiligo: position statement from the International Vitiligo Task Force part 1: towards a new management algorithm. J Eur Acad Dermatol Venereol. 2023;37(11):2173-2184. doi:10.1111/jdv.19451 Seneschal J, Boniface K. Vitiligo: Current therapies and future treatments. Dermatol Pract Concept. 2023;13(4S2):e2023313S. doi:10.5826/dpc.1304S2a313 RINVOQ [Package Insert]. North Chicago, IL: AbbVie Inc.; 2026 SOURCE AbbVie

CompaniesJune 29 (Reuters) - Swedish care provider Ambea (AMBEA.ST), opens new tab said on Monday it had made a recommended public ​offer for peer Humana (HUMAN.ST), opens new tab, valuing the ‌company at about 2.96 billion Swedish crowns ($304.13 million).

Ambea is offering Humana shareholders SEK 20 in ​cash, 0.305 Ambea shares and ​one contingent value right for each Humana ⁠share.

The cash-and-share part of the offer ​corresponds to SEK 62.30 per Humana share, ​a 26.8% premium to Humana's closing price on June 26.

The combination would strengthen Ambea's position in ​the Nordic care market, where ageing ​populations and increasingly complex care needs are driving ‌structural ⁠demand.

Humana's board unanimously recommended shareholders accept the offer, while holders of about 41.9% of Humana's shares have undertaken to accept ​it.

The contingent ​value right ⁠could pay up to SEK 4.36 per Humana share, depending ​on Humana's appeal in a ​damages ⁠case against the Swedish state over its revoked personal-assistance licence.

Ambea said it plans to ⁠divest ​Humana's Personal Assistance Sweden ​business following completion of the offer.

($1 = 9.7326 Swedish crowns)

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Reporting ​by Jesus Calero; Editing by Jamie Freed

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

By PYMNTS  |  June 28, 2026

 | 

China’s Tencent is reportedly testing an app designed for overseas travelers to its country.

TenPayGo was created to function as a one-stop digital services platform that includes mobile payments, Bloomberg News reported Sunday (June 28), citing Jiemian News. The app, now being tested, lets users spend directly at millions of merchants in China that accept Weixin Pay, letting visitors send and explore China with no need for cash, the report added.

Bloomberg noted that China is seeing a steep increase in foreign visitors, with almost 7 billion cross-border trips logged last year, according to the National Immigration Administration. Overseas nationals made up more than 82 million entries and exits, a 26.4% increase compared to the prior year.

The report added that this increase is indicative of expanded visa-free arrangements and wider travel facilitation measures, which authorities say have made it easier for foreign visitors to come to China for both business and pleasure.

Tencent’s efforts come at a time when digital wallets are evolving from “a more convenient way to pay” to “something more consequential: a platform for managing permissions,” as PYMNTS wrote last week.

This evolution can be seen in two recent developments. Samsung’s launch of Samsung ID with CLEAR lets American passport holders store TSA-approved digital credentials inside Samsung Wallet. Meanwhile Visa and OpenAI announced plans to support payments initiated by artificial intelligence agents operating under consumer-defined rules and controls.

“Viewed separately, one initiative concerns identity and the other payments,” PYMNTS wrote. “Together, they point toward a broader development in digital commerce: identity verification and spending authorization are beginning to reside in the same place.”

The report cited data from PYMNTS Intelligence which suggests consumers, younger ones in particular, are already making digital wallets part of their regular shopping behavior, setting the stage for them to get comfortable using them for other things.

The traditional role of digital wallets, the report continued, was to offer users a place to store payment credentials and make checkout simpler. Today’s wallets, however, house boarding passes, loyalty cards, tickets, digital keys and government credentials.

“A wallet that can prove who a consumer is occupies a different position in the commerce ecosystem than one that simply stores a card number,” PYMNTS wrote. “Identity credentials are difficult to establish, heavily regulated and tied directly to fraud prevention and security requirements. Once consumers rely on a wallet for identity verification, the relationship becomes more durable.”

Abbott's milk powder products are displayed on a shelf at a supermarket in Beijing August 7, 2013. Abbott Laboratories has agreed to pay a fine amounting to around $12 million, a spokeswoman... Purchase Licensing Rights, opens new tab Read more

CompaniesJune 28 (Reuters) - The U.S. Justice Department closed a criminal probe into Abbott Laboratories (ABT.N), opens new tab over ​its handling of a baby formula plant linked to potentially deadly ‌bacteria and infant deaths, opting instead for civil penalties, the Wall Street Journal reported on Sunday.

Reuters could not immediately verify the report. The U.S. Department of Justice ​and Abbott Laboratories did not immediately respond to a request for ​comment outside business hours.

Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.

Abbott initiated a recall of its infant formula ⁠products and closed its Michigan plant in 2022 after investigators found traces ​of a potentially deadly bacteria at that plant. The recall and the ​plant closure worsened a national shortage of baby formula that had begun with pandemic supply chain issues.

Abbott had said at the time that there was no evidence linking ​its formulas to these illnesses. No unopened, distributed Abbott infant formulas have ​tested positive for the bacteria that sickened the babies, a company spokesman told the ‌WSJ.

Some ⁠prosecutors believed they had evidence to criminally charge the company, but top decision makers closed the probe, according to the WSJ report. Instead, they opted for the lighter option of clawing back money the company earned from ​selling formula through ​federally funded nutrition ⁠programs, the report added.

“Ensuring the safety of our nation’s food supply is a top priority for the Trump ​administration; however, this Department of Justice does not believe ​in regulation ⁠by prosecution,” a spokeswoman for the DOJ told WSJ.

Prosecutors had been considering a misdemeanor charge against Abbott for violating the federal Food, Drug and Cosmetic ⁠Act and ​a separate count for misleading the government ​before dropping the case, the report said, and added that prosecutors were also considering charging ​at least one individual.

Reporting by Akanksha Khushi in Bengaluru; Editing by Rashmi Aich

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Tesla (TSLA +1.38%) is set to report its second-quarter vehicle deliveries in the first days of July -- something that will draw attention away from its more aspirational ventures like robotaxis and humanoid robots. The most important figure from the production and delivery update will likely be the year-over-year growth rate in deliveries.

The update will be timely, as deliveries are the most direct measure of whether demand for Tesla's cars is recovering after a difficult 2025 -- and this quarter is the first meaningful test of whether that recovery has staying power.

In 2025, Tesla delivered 1,636,129 vehicles, down 8.6% from nearly 1.8 million in 2024. The first quarter of 2026 brought a return to growth, with deliveries rising 6.3% year over year to 358,023. But there was a complication: Tesla produced about 50,000 more vehicles than it delivered -- a larger-than-usual gap between supply and demand that likely worried some investors.

So, can Tesla report a strong enough year-over-year growth rate to convince investors that a sustainable rebound in the company's automotive business is underway?

Tesla Cybercab. Image source: Tesla.

Here's the threshold Tesla needs to cross Wall Street's consensus calls for about 406,000 deliveries in the second quarter. Some of the more bullish forecasts run higher, at about 420,000. Either would clear the comparison that matters most: the 384,122 vehicles Tesla delivered in the second quarter of 2025.

Climbing back above that year-ago level would mean Tesla has put together two straight quarters of growth.

So, here's a simple way to frame the report: A number around 406,000 or higher would arguably signal that a meaningful recovery is on track. A figure near or above 420,000 would suggest momentum is building faster than expected. But a result that slips back toward last year's 384,122 would support the bear case, showing that the first-quarter bounce was temporary and that demand still isn't keeping pace with Tesla's production.

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Where the number gets decided While Tesla doesn't break out regional deliveries in its quarterly production and deliveries update, regional performance will be key to the overall figure.

Europe has reportedly recently turned from a weak spot into a source of growth for the company; Tesla's new-car registrations there more than doubled year over year in May, a sharp reversal from the steep declines that weighed on 2025. China, Tesla's second-largest market, has also reportedly held up well, helped by the refreshed Model Y.

The drag, however, may be the United States. With the tax credit having expired at the end of the third quarter of 2025, U.S. demand has cooled, and registrations there have reportedly tracked down by the mid-teens so far this year. So the second-quarter number probably comes down to one question: Is the strength in Europe and China enough to more than offset any domestic softness?

Still, even though the reported year-over-year growth rate for Tesla's deliveries will be an important figure to watch, it's clear that investors buy the stock for far more than its automotive business. After all, that's the only thing that could explain its astronomical valuation. Tesla stock trades at about 345 times earnings -- a multiple that only makes sense if investors are paying for self-driving software and robots rather than for simply electric cars.

But the car business still generates the majority of Tesla's revenue, so a soft delivery number would be a reminder of how far the company is from growing into its wild valuation.

Tesla shares are down about 16% so far in 2026, trading well below their December high near $490. So you can bet investors are hoping for some good news. With that said, the more important update will probably come later in July, when the company reports its full second-quarter results, which will include financials like revenue and cash flow, as well as the company's progress on its important Robotaxi operation and its longer-term ambitions, such as humanoid robots.

Nvidia (NVDA 1.42%) has become almost synonymous with the words "artificial intelligence" (AI). When people think of AI, they automatically think of this company -- and for good reason. Nvidia has generated quarter after quarter of explosive earnings growth, with revenue and profit reaching record levels, thanks to its AI products.

The company is the world's leading designer of graphics processing units (GPUs), the powerful chips used to fuel AI tasks, and has expanded across other related products, such as networking tools and enterprise software, to build complete AI systems.

Investors recognized Nvidia's strength in AI and raced to get in on this exciting growth story. The result? Nvidia stock soared more than 1,100% over the past three calendar years.

Of course, investors are always on the lookout for another stock that may perform as well. They may not have to look very far. Micron Technology (MU 6.59%) has proven itself to be an AI heavyweight, providing the memory and storage crucial for AI use. Is Micron stock the new Nvidia? Let's find out.

Image source: Getty Images.

Increasing earnings over time Micron isn't new to the technology scene. The company got its start almost 50 years ago and has served computers and other devices with a portfolio of memory and storage options. This helped the company increase earnings over time, but at a much slower pace than what we're seeing today.

MU Net Income (Quarterly) data by YCharts

Though Micron has seen business ebb and flow in the past, as is normal in the cyclical semiconductor industry, the current surge is a whole new ball game. Needs linked to AI have supercharged growth, as we've seen in recent quarters. The latest is the perfect example, with revenue more than quadrupling to reach past $41 billion and net income jumping from $1.8 billion in the year-earlier period to an eye-popping $28 billion.

On top of this, Micron says that demand is surpassing supply, and the company expects this to continue beyond this calendar year. This supply situation is due to strong AI demand as well as general supply constraints that are impacting the entire memory industry. These include various factors, including the time it takes to ramp up manufacturing facilities and obtain permits, and a complex regulatory framework.

While this is a challenge for Micron, it also means that competition isn't a major problem: There is more than enough business for each of the top players to generate growth.

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How Micron resembles Nvidia Now, let's consider how Micron may resemble Nvidia. Like Nvidia, it plays a key role in the AI growth story. The company offers the DRAM, NAND, and HBM memory products that are crucial to the functioning of the technology. And we can imagine that, as the use of AI agents increases, the need for memory power may become even greater. Agentic AI, seen as the next AI growth driver, involves AI taking action, often through several steps, to solve problems.

Also like Nvidia, Micron has been around for decades, perfecting its products, and today, both companies have achieved extremely high profitability on sales. In fact, Micron's gross margin just surpassed that of Nvidia. Micron's reached more than 84% in the recent quarter, while Nvidia's gross margin tops 74%. So not only are these players benefiting from revenue growth in the AI boom, but they are translating that into significant profit.

One area that separates the two is the following: Nvidia is the AI chip leader and has expanded into related products, as mentioned above. Micron remains a memory and storage specialist -- and in AI, though Micron is growing fast and is among the leaders, South Korea's SK Hynix often is seen as the AI memory giant.

This doesn't necessarily mean Micron won't take the path of Nvidia, from an earnings and stock performance perspective. It does mean the company might come with a bit more risk, though.

Now, let's consider stock performance. Micron is already well on its way along an Nvidia-like path. The stock has soared more than 800% over the past year. So I think Micron might already be the next Nvidia -- and the demand and revenue growth Micron has seen in recent months suggest the stock still may have plenty of room to run over the long term.

Nvidia invested $2 billion in neocloud infrastructure provider CoreWeave (CRWV 2.27%) in January this year to help the latter build artificial intelligence (AI) factories powered by its chips. That investment has appreciated 11% since then despite bouts of volatility.

However, it won't be surprising to see this AI stock jump higher in the future, as it plays an important role in the AI infrastructure ecosystem by building dedicated AI data centers. Let's look at the reasons why this fast-growing company could be an ideal addition to your portfolio right now.

Image source: The Motley Fool.

CoreWeave's enormous backlog is going to fuel years of terrific growth Cloud computing giants such as Meta Platforms and Microsoft have been spending heavily on building AI data centers. Microsoft reported remaining performance obligations (RPO) of $627 billion in the previous quarter, nearly doubling year over year due to increasing demand for its AI services. Meta, on the other hand, is spending big on data center infrastructure to build AI products for customers and advertisers.

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CoreWeave has been the beneficiary of their aggressive capital spending, landing massive contracts to provide data center capacity for these companies. However, CoreWeave's customer base extends beyond these hyperscalers, as the likes of OpenAI and Anthropic have also turned to CoreWeave to build data centers.

In fact, CoreWeave noted in its May earnings call that it has 10 customers who have committed to spending at least $1 billion each to rent data center capacity from the company. Moreover, CoreWeave is diversifying its customer base by adding financial services clients, such as Jane Street and Hudson River Trading. It has also added other pure-play AI companies, such as Perplexity AI, to its client list.

Goldman Sachs predicts that data center power demand in the U.S. is going to double by next year, rising to 66 gigawatts (GW) from 31 GW in 2025. Not surprisingly, AI companies and hyperscalers have been quickly buying the available data center power capacity from the likes of CoreWeave.

This explains why CoreWeave's revenue backlog sits at a remarkable $99.4 billion, with the metric growing by 284% year over year in Q1. For comparison, the company's quarterly revenue rose 112% to $2.1 billion. That revenue growth rate will accelerate sharply as CoreWeave builds more data centers.

The company's active data center power capacity crossed the 1 GW mark in Q1. Importantly, it increased its contracted power capacity to 3.5 GW. The contracted capacity is the electrical power that CoreWeave has secured from utility providers to build AI data centers. This suggests CoreWeave can more than triple its active capacity in the future. What's worth noting is that CoreWeave aims to build 8 GW of active data center capacity by the end of the decade.

Of course, building AI data centers is a capital-intensive endeavor, which explains why CoreWeave has been taking on significant debt to fund its expansion. As a result, its interest expense doubled year over year in Q1 to $536 million. CoreWeave has raised $20 billion this year through debt and equity financing, suggesting that interest expenses will continue to weigh on its bottom line.

However, the company is trying to lower financing costs, with management pointing out that it is "broadening access to capital at lower blended cost will continue to be an important lever for CoreWeave as we convert backlog to revenue and operating cash flow." CoreWeave estimates that it will convert 36% of its backlog into revenue over the next two years, while 75% of the backlog is likely to be recognized as revenue over the next four years.

As a result, CoreWeave expects its annualized run rate revenue to jump from $18 billion at the end of 2026 to $30 billion at the end of 2027. The aggressive conversion of CoreWeave's backlog into revenue will also boost its bottom line.

Data by YCharts

Here's why this stock looks like a potential multibagger CoreWeave stock has jumped by 22% in 2026, which helps explain why it can still be bought at just under 8 times sales, which isn't very expensive considering that the tech-focused Nasdaq Composite index has a price-to-sales ratio of 5.2. The slight premium it trades at can be justified by its ballooning backlog, triple-digit revenue growth, and the ability to sustain solid growth in the future.

Data by YCharts

If CoreWeave's top line indeed jumps to $40 billion by the end of 2028 and it trades at the Nasdaq Composite's sales multiple, its market cap could increase to $208 billion. That's significantly higher than its current market cap of $53 billion, indicating that this growth stock could become a multibagger. That's why buying CoreWeave seems like a no-brainer right now, as it is pulling the right strings to capitalize on the booming demand for AI data centers.

LOS ANGELES--(BUSINESS WIRE)--The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of DXC Technology Company (“DXC” or “the Company”) (NYSE: DXC) for violations of the securities laws.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. DXC reported its Q4 and full year 2026 financial results on May 7, 2026. The Company reported a decline in revenue for Q4 and bookings down 13.5% year-over-year. The Company blamed this shortfall in part on execution issues. Based on this news, shares of DXC fell by almost 21.5% on the next day.

If you are a shareholder who suffered a loss, click here to participate.

We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.

One of the biggest bottlenecks for artificial intelligence (AI) data centers right now is power supply. Power grids cannot keep up with the capacity of data centers coming online, and hyperscalers are having to get creative with their power solutions.

Ford Motor Company (F +0.14%) is entering this market by repurposing its electric vehicle (EV) manufacturing footprint to produce battery energy storage systems. The move helps Ford put its battery-making capacity to work as EV support wanes while data center power demand surges. Here's why this trend could supercharge Ford stock in the coming years.

Image source: Getty Images.

Ford's pivot from EV batteries to AI power solutions After over $200 million in manufacturing investments and federal incentives, recent policy rollbacks and shifting consumer preferences have turned the tide for EV manufacturers. With federal tax credits expiring and regulators relaxing emissions standards, automakers that made massive investments in EV infrastructure are now having to pivot.

The build-out of AI data centers presents an opportunity for companies like Ford. That's because these data centers are straining the electricity grid, forcing hyperscalers to seek a variety of energy solutions to meet this growing demand. And because AI workloads require continuous, high-density power, hyperscalers need power solutions that can smooth out sudden load ramp-ups and provide reliable, baseload power 24/7.

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In May, Ford announced the launch of Ford Energy, a wholly owned subsidiary focused on manufacturing utility-scale battery energy storage systems (BESS). This comes amid slowing consumer adoption of EVs and the company's $19.5 billion write-down of its EV programs last year.

As part of this, Ford will spend $2 billion to repurpose its Glendale, Kentucky, facility, originally a multibillion-dollar EV battery joint venture with SK On, a South Korean EV battery and energy storage systems (ESS) manufacturer. Along with making batteries for EVs, the company will manufacture the Ford Energy DC Block, a 5.45-megawatt-hour containerized grid storage system using stable lithium iron phosphate (LFP) chemistry.

Ford Energy aims to position itself as a domestically based, multi-gigawatt manufacturer of these energy solutions. The company entered a deal with EDF Power Solutions, a five-year framework that could be worth up to $4 billion if all options are exercised. Ford will supply its DC Block system, which EDF will use to power data centers and mitigate renewable intermittency on the U.S. power grid.

Is Ford stock a buy? Looking ahead, the company will retool its manufacturing infrastructure over the next couple of years and expects to begin shipping its BESS systems starting as soon as 2027. The company aims to manufacture and deploy 20 GWh (gigawatt-hours) of energy storage capacity annually. If it succeeds, Ford would add a high-growth energy and infrastructure business that could provide a steady revenue stream for assembling, managing, and servicing its BESS systems.

Automakers have historically commanded low to mid-single-digit price-to-earnings multiples due to cyclical consumer demand, low margins, and heavy capital expenditure. If Ford Energy succeeds in securing deals and scaling its energy business, the stock could warrant a valuation rerating. Given the robust demand for power solutions and the recent 20% decline from its recent high, I think Ford is a compelling stock to consider.

About two weeks ago, Advanced Micro Devices announced the acquisition of MEXT, a start-up that has built artificial intelligence (AI)-driven software designed to make NAND flash behave like dynamic random-access memory (DRAM).

The technology uses predictive algorithms to identify frequently accessed data and move it between flash storage and high-speed memory in real time, reducing the amount of expensive DRAM a data center needs to run AI workloads at scale. According to MEXT's own press release, the software can cut memory costs by nearly half while expanding usable memory capacity by two to four times.

For investors in Micron Technology (MU 6.59%) and Sandisk (SNDK 10.45%), the knee-jerk read is obvious: If AMD can teach flash to behave like DRAM, demand for high-bandwidth memory contracts declines. The knee-jerk read is terribly wrong.

What MEXT actually does (and doesn't do) MEXT's technology operates in the software tier between existing storage and compute. It doesn't replace DRAM or HBM. Instead, it reduces the amount of high-speed memory certain workloads require by optimizing what lives in it at any given moment. That's a meaningful efficiency gain for enterprise customers running general-purpose AI workloads, where memory is a cost constraint.

What it cannot touch is the physics of training large AI models and running inference at the performance levels that hyperscalers require. An Nvidia Blackwell graphics processing unit (GPU) demands HBM4 not because no one has tried to work around it, but because the bandwidth requirements of training trillion-parameter models are architectural constraints, not software problems. No predictive tiering algorithm changes what the silicon needs.

MEXT is a tool for enterprises trying to stretch existing infrastructure. It is not a substitute for the memory products that Micron and Sandisk sell to massive tech companies.

Image source: Getty Images.

Micron's position is structurally insulated Micron Technology's entire 2026 HBM4 production is sold out under binding multi-year contracts. At COMPUTEX 2026 in May, the company laid out an end-to-end AI memory portfolio spanning data center to intelligent edge, all in high-volume production. Fiscal first-quarter 2026 revenue hit $13.64 billion, up 57% year over year, with gross margins around 56%, driven by HBM pricing power that comes from contracted scarcity.

The reason Micron's HBM business is immune to MEXT is the same reason it's immune to most software-layer interventions: The customers buying it aren't as price-sensitive as enterprise IT buyers. Hyperscalers building AI training clusters are optimizing for bandwidth and compute density, not TCO reduction. That's a different buyer with different priorities.

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Sandisk is benefiting from the same trend AMD is targeting Here's the counterintuitive part: MEXT's technology, which moves data between flash and DRAM, depends on high-performance NAND flash to function. The better and faster the flash tier, the more effective the tiering software becomes. Sandisk is the company building the flash tier.

In third-quarter fiscal 2026, Sandisk's data center segment revenue surged 233% sequentially to $1.47 billion, driven by enterprise SSDs built specifically for AI workloads. Full-year revenue jumped 61% to $3.03 billion, beating Wall Street consensus by 12%.

Sandisk's stock is up roughly 750% year to date at the time of this writing, the best-performing large-cap technology stock in the S&P 500 so far in 2026. AMD's bet on memory optimization software is, at its core, a bet that NAND flash will absorb more of the workloads traditionally handled by DRAM. That's a thesis that requires better, faster NAND -- which is exactly what Sandisk makes.

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So no, neither Micron nor Sandisk is under meaningful threat from the MEXT acquisition. The market made that clear today, with both stocks flirting with 20% gains this week on June 25. The real risk for both has always been the same one that defines memory investing: If AI infrastructure spending slows faster than new capacity comes online, pricing power compresses, and margins follow.

Both companies are going to be just fine. AMD's MEXT acquisition is a smart move for its data center business, but it doesn't change the fundamental thesis for Micron or Sandisk. If anything, it might be a tailwind.

Big banks are always among the first companies to report earnings every quarter. As banks are seen as bellwethers for the economy, investors can get a sense of what to expect from other sectors of the economy based on bank earnings. But there is one stock that might be considered a bellwether for the bellwethers -- Jefferies Financial (JEF 6.72%).

Jefferies is a leading investment bank, and it reports earnings weeks before other big investment banks like Goldman Sachs (GS 4.27%), Morgan Stanley (MS 4.08%), and JPMorgan Chase (JPM 1.81%). That's because its quarter ends one month earlier than those other banks -- in this case, May 31.

Image source: Getty Images.

So while it might not be a total apples-to-apples comparison to the other banks, Jefferies results can certainly give investors a sense of how the quarter went for the other major banks, perhaps providing intel on whether they should buy leading up to earnings season.

So how did Jefferies do? Here are some takeaways.

Earnings miss and a mixed bag Jefferies' fiscal second-quarter earnings, released June 24, were a mixed bag. Net earnings grew a solid 5% year over year to $226 million, or $1.02 per share, but it was short of estimates of $1.16 per share. Revenue also missed estimates, despite rising 37% year over year to $2.21 billion. Analysts anticipated $2.22 billion.

The miss was the primary reason that Jefferies stock dropped about 8% the next day, June 25.

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The earnings and revenue, while strong, missed estimates due to weak asset management numbers. Asset management revenue tumbled 46% to $188 million in the quarter due to a difficult stock market environment from March through May. Also, it took a hit from losses by its subsidiary, Point Bonita, which had significant exposure to First Brands Group, a company that went bankrupt last fall.

But on the plus side, Jefferies had blowout investment banking results.

Blowout investment banking revenue Investment banking, Jefferies' bread and butter, had a record quarter. This should get the attention of investors looking at earnings for Goldman Sachs and Morgan Stanley next month.

Investment banking revenue surged to $1.2 billion, a 58% increase year over year. It was a record quarter for Jefferies, led by advisory and equity underwriting. It also had a strong quarter in capital markets as revenue rose 13% to $799 million. Combined, capital markets and investment banking revenue increased 37% year over year to a record $2 billion.

While the quarter may have been a mixed bag for Jefferies, it was good news for other investment bank stocks and their investors. Obviously, the record investment banking and capital markets hauls indicate that this will be a strong quarter for the large investment banks.

Additionally, the downside of this report for Jefferies, asset management, won't translate to the other competitors. That's because Jefferies' asset management results include March, a terrible month for stocks. Goldman Sachs', Morgan Stanley's, and JPM's quarters won't include March and will start with the recovery rally in April.

Also, a big part of Jefferies' asset management hit was from its Point Bonita exposure to First Brands. The other companies won't have that drag. So Q2 should be a good one for the investment banks.

Prime Day generates billions of dollars in sales and dominates headlines every summer. It just generated a record $26.4 billion in sales across the four-day event last week. Yet focusing only on Amazon‘s (NASDAQ:AMZN | AMZN Price Prediction) annual shopping event misses the much bigger story. 

The company has quietly transformed itself into one of the world’s most integrated technology platforms, combining cloud computing, artificial intelligence, logistics, advertising, satellite communications, and digital commerce under one roof. Few companies possess that breadth. Even fewer have managed to make each business strengthen the others.

 For long-term investors, those connections — not discounted electronics — may ultimately prove to be Amazon’s greatest competitive advantage.

Amazon’s Competitive Moat Keeps Getting Wider Amazon’s biggest strength isn’t any single business. It’s how all of its businesses reinforce one another.

The company’s retail operations introduced more than 260 million Prime members worldwide, creating one of the largest recurring subscription ecosystems anywhere. Those members spend more, shop more frequently, stream Prime Video, use Amazon Music, and increasingly interact with Amazon’s growing advertising platform.

Meanwhile, Amazon Web Services (AWS) continues serving as one of the foundations of the global cloud industry. AWS generated approximately $37.6 billion in quarterly revenue as enterprises accelerate AI deployments. Every new AI model requires computing power, storage, networking, and security — services AWS already provides at enormous scale.

Company Primary Strength Strategic Advantage Amazon Cloud, AI, commerce, logistics, advertising Vertically integrated ecosystem Microsoft (NASDAQ:MSFT) Enterprise software and Azure Deep enterprise relationships Alphabet (NASDAQ:GOOG) Search, cloud, AI Data and advertising leadership Nvidia (NASDAQ:NVDA) AI chips Dominant AI accelerator hardware Amazon stands apart because it controls nearly every layer — from fulfillment centers and warehouses to cloud infrastructure and AI chips.

AI Infrastructure Could Be the Next Growth Engine The AI boom is expanding Amazon’s opportunity well beyond online shopping.

One area attracting growing attention is Project Kuiper, Amazon’s low-Earth-orbit satellite network. Much like Starlink transformed SpaceX (NASDAQ:SPCX) into a communications infrastructure company, Kuiper gives Amazon the ability to design its own satellites, customer terminals, and networking systems while extending AWS closer to customers through edge computing. Over time, that vertical integration could create powerful synergies between cloud services and global connectivity.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Amazon didn't make the cut. Grab the names FREE today.

Amazon is also reducing its dependence on outside chip suppliers. Its Trainium2 processors are ramping faster than any previous AWS custom silicon platform while delivering roughly 30% to 40% better price-performance than many traditional GPU alternatives for AI workloads. Management also disclosed approximately $225 billion in customer commitments supporting future infrastructure demand, with much of today’s Trainium capacity already reserved. It may soon start selling the chips to third-party customers.

Advertising is quietly becoming another major earnings driver. Amazon says Prime Video advertisements now reach approximately 315 million viewers worldwide, creating another recurring revenue stream layered on top of its commerce ecosystem.

Cash Burn Looks Scary — Until You Look Deeper Granted, Amazon isn’t a textbook value stock. The company continues spending enormous sums building AI data centers, expanding logistics infrastructure, and launching Kuiper satellites. Free cash flow has turned negative as capital expenditures surged, Amazon pays no dividend, repurchases virtually no shares, and stock-based compensation continues creating shareholder dilution.

Those concerns deserve attention, but context matters. The company generated approximately $148.5 billion in trailing operating cash flow while holding more than $153 billion in cash and short-term investments — more than double its 2022 balance. Those figures give Amazon flexibility that many competitors simply don’t possess.

Investors are right to question whether today’s AI spending can continue indefinitely. However, companies like Amazon, Alphabet, and Nvidia currently have the balance sheets necessary to fund that investment without placing meaningful financial stress on their businesses.

Key Takeaway In short, Amazon has become much more than the world’s largest online retailer. It now operates one of the most interconnected technology ecosystems ever assembled, spanning cloud computing, AI infrastructure, satellite communications, logistics, advertising, and digital commerce.

The stock may not be deeply undervalued, and heavy capital spending will likely pressure free cash flow for some time. Regardless, Amazon has followed this playbook for decades — reinvesting aggressively today to widen its competitive moat tomorrow. With $148 billion in operating cash flow, more than $153 billion in liquidity, and multiple AI-driven growth engines still in their early stages, the company appears well positioned to turn today’s spending into tomorrow’s earnings power. For patient investors, that’s a trade-off worth understanding.

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The stock of Aehr Test Systems (AEHR 7.07%) got a lot of attention after rallying almost 681% over the past year. A little over half of that gain came in 2026 alone. Sounds like a stock worth a closer look, right?

Let's take a look at what it does before making any commitment to buy shares. Here's an overview of Aehr Test Systems' involvement with the artificial intelligence (AI) boom and whether it presents a good buying opportunity.

Image source: Getty Images.

What does Aehr Test Systems do? AI chipmakers like Nvidia and Broadcom sell millions of chips per year, but not all of them actually work; a small percentage fail shortly after use. Tech companies accept it as a cost of doing business, but if the failure rate were very high, it might make hyperscalers more wary.

Companies like Aehr Test Systems address this issue by stress-testing microchip batch samples under extreme conditions to catch defects early. This reduces the number of defective chips that leave factories.

The company has been testing its technology through deals with hyperscalers for multiple years and has finally started landing lucrative deals. It reported over $37 million in quarterly bookings in its fiscal 2026 third quarter (ended Feb. 27, 2026) and said that it anticipated a "near-term follow-on production order" from its top hyperscale customer.

Less than two weeks later, that big booking arrived. A record $41 million production order from that hyperscale customer resulted in second-half bookings exceeding $92 million. Aehr Test Systems also announced "a strong pipeline of forecasted customer orders in place."

Earlier this month, management announced another big win: a follow-on production order from what it described as "a global leader in networking products and solutions," a major supplier to the data center optical transceiver market.

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Can Aehr Test Systems rally continue? Aehr Test Systems is gaining more attention for its stress-testing technology, and revenue growth could accelerate significantly. The $92 million in second-half bookings is sizable when compared to the $10.3 million in third-quarter revenue.

The $41 million production order from the lead hyperscaler shows how quickly the backlog and overall revenue can grow. Each order of that caliber will have a seismic impact on revenue, and management is positioning itself to woo multiple hyperscalers.

Investors should try to ignore current revenue growth when assessing the stock. The company's 44% year-over-year revenue decline in the third quarter is related to the prolonged slump in the electric vehicle (EV) market. Chips for EVs won't play as much of a role in Aehr's future results. In its third-quarter press release, the company touts itself as a leading provider of test and burn-in solutions for several industries. That press release lists AI and data centers before mentioning automotive chips.

Aehr Test Systems has an easy path to meaningful revenue increases, but it is a risky stock. A 61 price-to-sales ratio is quite excessive, which has resulted in significant volatility. 10% and 20% dips are quite common for Aehr Test Systems.

However, the steady stream of orders can set the stage for meaningful revenue acceleration, which would result in a more reasonable valuation. Its ability to retain a top hyperscaler and get that customer to raise its order size is a good sign for the future. Investors who are strictly focused on valuation may want to ignore this one, but long-term investors who are excited about the recent surge in AI-related orders may want to give it a closer look.

On Tuesday, June 23, a SpaceX Falcon 9 lifted off from Cape Canaveral carrying a vehicle most people had never heard of. The payload was called Starfall -- a disc-shaped reentry pod, 10.2 feet wide and 2.5 feet tall, designed to carry up to 1 metric ton of cargo from low-Earth orbit back to Earth's surface.

Space Exploration Technologies (SPCX +0.13%) described it publicly as a "microgravity lab" for scientific research and in-space manufacturing. What the Federal Aviation Administration's environmental assessment called it was more specific: a vehicle to "enable point-to-point delivery of critical cargo through space on rapid timelines." 

Image source: Getty Images.

Those two descriptions are both accurate, and the gap between them is where the investor story lives.

The vehicle is not capable of de-orbiting itself. It relies on its launch vehicle -- a Falcon 9 today, potentially Starship later -- to guide it back toward the atmosphere, after which it orients its heat shield using compressed nitrogen gas and descends by parachute to a splashdown zone. It's smaller than SpaceX's Crew Dragon, built exclusively for cargo, and recoverable -- SpaceX intends to retrieve the vehicle and its parachutes for reuse.

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Two markets to pay attention to Two markets emerge immediately from that design profile. The first is military logistics. The Pentagon has been working toward a space-based point-to-point cargo delivery capability for years. In 2022, the Air Force Research Laboratory awarded SpaceX a $102 million contract to demonstrate the concept using Starship -- the ability to deliver roughly a C-17 Globemaster's worth of supplies anywhere on the planet in under 90 minutes. Starfall, smaller and deployable on the existing Falcon 9, is a complementary tool for lighter, more targeted deliveries that don't require Starship's enormous footprint or a prepared landing site. The Pentagon has signed similar early-stage agreements with Rocket Lab (RKLB +4.67%), Blue Origin, and Anduril for reentry vehicle development. SpaceX is the only company flying a working vehicle today.

The second market is commercial in-space manufacturing, and it's further along than most people realize. Varda Space Industries signed a partnership with United Therapeutics in May 2026 to manufacture drugs in microgravity -- specifically targeting small-molecule crystallization processes that Earth's gravity renders structurally imperfect. Varda CEO Will Bruey put the economics plainly at the 2026 Upfront Summit: A launch capable of processing space-manufactured drugs and returning them to Earth now costs roughly $2.2 million -- a number that makes pharmaceutical microgravity viable at commercial scale for the first time. Starfall, with its 1-metric-ton payload capacity and reusable design, is positioned as the return infrastructure that makes that supply chain possible at volume.

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This is where SpaceX's structural advantage over every competitor in this space becomes relevant to investors. Rocket Lab is targeting a 2026 demonstration of reentry capability on its Neutron rocket -- which has not yet flown. Blue Origin is earlier in the development process. Inversion Space received a $71 million contract for its Arc reentry vehicle, which remains in development. SpaceX flew Starfall on Tuesday. That lead time matters in a market where government procurement decisions follow demonstrated capability, not road maps.

The military's REGAL program -- Rocket Experimentation for Global Agile Logistics -- has explicitly framed point-to-point space cargo as a pathway to becoming a program of record, meaning recurring annual defense budget line items rather than one-time research and development (R&D) grants. SpaceX's $102 million AFRL contract was the first significant step in that direction. Starfall's successful demonstration puts the company in a position to substantially expand that relationship.

What this means for SPCX shareholders -- or those interested in investing Here is where the honest qualification belongs. Starfall's commercial potential is real, but the timelines are long, and the revenue is not yet material on SpaceX's financials. The company's near-term revenue story is Starlink, which generated $4.42 billion in operating income in 2025 and remains the only profitable segment. Even in an optimistic scenario where it wins military contracts and becomes the backbone of orbital pharmaceutical manufacturing, Starfall adds revenue on a multiyear timeline.

For investors looking at SpaceX in a week when the stock has already fallen nearly 30% from its peak due to valuation and float concerns, Starfall is the kind of development that validates the long-term thesis without changing the short-term math.

It is also worth saying plainly: None of this is new. SpaceX has been demonstrating breakthrough capability for years, and investors who needed Tuesday's test to feel confident in the underlying technology were perhaps not paying close enough attention. SpaceX is building real technology that solves real problems.

The question that was true before Tuesday and remains true after it is whether the current price -- which sits 53% above Morningstar's base-case intrinsic value -- gives investors enough room for execution risk on programs that haven't yet generated meaningful revenue.

The technology is not what's in question. The valuation still is.

Companies try to highlight the best news when they report earnings. That's to be expected, but you need to go into earnings season knowing you have read beyond the headlines. Canopy Growth (CGC +2.31%) reported huge growth in its medical marijuana business, which saw revenues increase 27% in the fourth quarter of fiscal 2026 and 17% for the full fiscal year. The rest of the business was a bit more mixed.

The good news and the less-than-good news There's no question that Canopy Growth's medical marijuana business is doing well right now. It is also worth noting that the company recently bought MTL Cannabis, a move that should solidify its already strong position in the Canadian medical marijuana market. The strong growth in medical marijuana revenues highlights why the company is leaning into this division.

Image source: Getty Images.

The problem is that this isn't the company's only business. Its recreational marijuana business increased revenue by 20% in fiscal 2026, but the fourth quarter saw only a 1% increase. While the company attributes the full-year growth to "growth in infused PRJ offerings and new All-In-One vaporizers launched early in the fiscal year," the fourth quarter's 1% revenue growth suggests it ended the year on a weak note. That hints this division's outlook may not be as robust as the full-year growth suggests.

Meanwhile, the company's international cannabis sales rose 68% in the quarter, but fell 7% year over year. Supply chain issues were highlighted as a problem earlier in the year. Once again, the outlook is less clear than investors may like. And then there's the Storz & Bickel vaporizer business, which saw sales decline 14% for both the full fiscal year and in the fourth quarter.

Not enough good news to make Canopy Growth a buy It is likely to require more than one strong division for Wall Street to get excited about Canopy Growth again. But there's still some more bad news to consider. Notably, the company's gross margin fell four percentage points in the fourth quarter and six percentage points for the full fiscal year.

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Not surprisingly, Canopy Growth reported negative earnings again in fiscal 2026. In fact, it hasn't reported positive earnings since it went public, more than a decade ago. Now add in the fact that it recapitalized its balance sheet in fiscal 2026, exchanging shares for debt, and most investors should probably watch from the sidelines.

Could Canopy Growth's stock rally from here? Sure. But with only one business clearly performing well, only the most aggressive investors should probably bet on this penny stock having a sustained rally.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Like virtually all software stocks, enterprise software-as-a-service (SaaS) giant Salesforce (CRM +5.41%) has been hit hard this year. Shares are down a stunning 42% on the year and now trade just slightly higher than 10 times this year's adjusted (non-GAAP) earnings per share guidance.

The decline is not unique to Salesforce, though; the entire software sector has been decimated due to fears over artificial intelligence's new ability to code as well as the best human engineers.

Software bulls would say that artificial intelligence (AI) could actually benefit certain software companies as long as they can pivot from a subscription model to a usage- or outcome-based model.

On that note, Salesforce just made an acquisition that has actually already made this transition and is now growing at triple-digit rates. Given that Salesforce needs to do the same, this acquisition isn't just about the acquiree's revenue and profits but also about the capabilities it could bring to the whole organization.

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What is Fin, and why did Salesforce buy it? On June 15, Salesforce announced it was buying customer service software company Fin, formerly known as Intercom, for $3.6 billion.

Some may think that Salesforce just acquired another "me too" customer service software suite. But Fin has proven itself to be more than that. When OpenAI released ChatGPT back in late 2022, Intercom founders Eoghan McCabe and Des Traynor went all in on artificial intelligence.

McCabe had a relationship with OpenAI even before ChatGPT debuted, and he was quick to introduce its new AI-powered software in early 2023. At first, the software was dedicated to helping customer service agents via automated summaries and inbox improvements. But when GPT-4 came out, Intercom decided to develop a fully customer-facing autonomous customer service agent called Fin and even renamed the company after it.

Fin has evolved to model-building and outcome pricing With years of expertise in customer service software and a strong focus in this area, Fin appears to have married its proprietary knowledge with the capabilities of new language models, making it a true, fully autonomous customer service agent.

At first, Fin used either OpenAI's ChatGPT or Anthropic's Claude as the underlying intelligence, then incorporated Fin's proprietary data and expertise to understand the complexities of a customer service call. When Fin launched, it resolved about 25% of customer service interactions. By May 2025, that had increased to 56%. Today, Fin's average resolution rate without human intervention averages 76%.

Image source: Getty Images.

What's really exciting about Fin is that in March, it unveiled its own proprietary model called Apex 1.0. So, whereas Fin was previously dependent on external large language models, it now has its own proprietary one built by Fin's 60-person AI technology team. Using its own vertical model specifically developed for customer service, Fin claims it's the highest-performing customer service model on the market, with faster time to first token and lower hallucinations than the large general models.

Just as important is that Fin has already transitioned to an outcome-based pricing model, where the customer pays only for fully automated customer service resolutions. That has resulted in reaccelerating growth for Fin, which saw its agentic annual recurring revenue (ARR) reach around $100 million and grow at 350% at the time of the transaction. Fin also had some legacy software ARR of around $300 million, bringing the total to $400 million. So, Salesforce is paying about 9 times sales.

But Salesforce is buying a lot more than that Of course, Salesforce isn't just buying Fin's growing ARR. Rather, it's buying a team of AI technologists who have already made the exact transition Salesforce needs to make -- from a recurring, subscription-based, human-driven software business to an outcome- or usage-based agentic AI software business powered by its own internally developed models.

The trepidation around that transition is why Salesforce has fallen to an extremely low valuation of just 10 times this year's earnings guidance. However, if Fin and Fin's team can help successfully deploy AI agentic capabilities across Salesforce's vast, far-reaching enterprise, that could very well ensure Salesforce's pivot is a success.

And if that happens, the stock has tremendous recovery potential from its current depressed valuation.

Anthony J. Kuczinski, a member of the Board of Directors of Ryan Specialty Holdings (RYAN +8.15%), reported the purchase of 3,000 shares of Common Stock in multiple open-market transactions on June 11 and June 12, 2026, according to the SEC Form 4 filing.

Transaction summaryMetricValueShares traded3,000Transaction value~$105KPost-transaction shares (direct)13,072Post-transaction value (direct ownership)~$466KTransaction value based on SEC Form 4 weighted average purchase price ($34.99); post-transaction value based on June 12, 2026 market close.

Key questionsWhat is the magnitude of this transaction relative to Kuczinski's prior activity?
This purchase of 3,000 shares is the largest single transaction by share count for Kuczinski over the past two years, significantly exceeding the previous purchase of 300 shares in May of 2025.How does this acquisition affect current direct ownership?
The transaction increased direct Common Stock holdings by 29.79%, bringing the post-trade total to 13,072 shares.Was the transaction executed at a discount or premium to recent market prices?
The weighted average purchase price was $34.99 per share, which is less than the June 12, 2026 closing price of $35.64, following a -46.93% one-year total decline in the stock as of the transaction date.What does the transaction imply about available capacity and ongoing accumulation?
With no shares sold in the past year and overall direct holdings rising, the activity signals ongoing accumulation capacity, supported by a direct and unleveraged position without derivative mechanics.Company overviewMetricValueMarket capitalization$10.3 billionRevenue (TTM)$3.16 billionNet income (TTM)$108.69 million1-year price change-46.93%* 1-year price change calculated using June 12, 2026 as the reference date.

Company snapshotRyan Specialty Holdings offers specialized insurance products and solutions, including wholesale brokerage, underwriting, product development, administration, and risk management services.It operates as a wholesale broker and managing underwriter, generating revenue through distribution and underwriting fees from insurance brokers, agents, and carriers.The company serves insurance intermediaries and carriers seeking tailored risk solutions in the specialty insurance market.Ryan Specialty Holdings is a leading provider of specialty insurance solutions with a focus on wholesale brokerage and managing underwriting services. The company leverages its scale and expertise to deliver comprehensive products and risk management to insurance intermediaries and carriers. Its business model emphasizes fee-based revenue streams and strategic positioning within the specialty insurance sector.

What this transaction means for investorsDirector Anthony Kuczinski’s June 11 and 12 purchase of Ryan Specialty Holdings stock suggests he has a bullish outlook towards the company. This is reinforced by the substantial size of his buy, which increased holdings nearly 30%.

It seems Kuczinski was capitalizing on the the fall in Ryan Specialty shares, which hit a 52-week low $29.28 in May. The drop was due to the company lowering its 2026 guidance from year-over-year organic revenue growth in the high single digits to the mid-single digits. The insurance industry is seeing softness, which contributed to the lower forecast.

That said, Ryan Specialty’s 2026 is off to a strong start. Revenue in the first quarter rose 15% year over year to $795.2 million, while net income came in at $40.6 million, a dramatic reversal from the $4.4 million net loss in the prior year.

Ryan Specialty’s success and its share price drop may have been catalysts for Kuczinski’s buy. Moreover, the stock’s price-to-sales ratio of 1.7 is near a low point for the past year, indicating its valuation is at an appealing level, and suggesting now is a good time to buy.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Last week, in an exclusive interview with the Wall Street Journal, outgoing Apple CEO Tim Cook warned that the memory chip crunch made price increases "unavoidable." He also made what seemed like a promise: "We're willing to use our balance sheet to help be a part of the solution." 

So much for that. On Thursday, Apple rammed through hefty price increases for many of its popular devices. Macs, iPads, the Vision Pro, HomePods and Apple TV products all saw price hikes ranging from 15% to over 30%. Even budget-friendly models, like the MacBook Neo and refurbished devices, weren't exempt, though iPhones and AirPods were spared for now.

Surging memory costs and tight supplies have shattered any belief that one of the most successful tech giants would shield its customers from the wrath of RAMageddon. It's a pattern that's becoming increasingly common across the consumer electronics industry.

Microsoft, Motorola, Samsung and now Apple have all blamed higher component costs -- driven largely by artificial intelligence data centers hogging all the available RAM -- to jack up price tags for everyday people. 

That's not to say that chipflation isn't real. Smartphones rely on DRAM for short-term memory and NAND flash for short-term storage, both of which are also needed for data centers. As these power-hungry AI warehouses face bottlenecks processing larger, high-bandwidth workloads, chipmakers are racing to increase supply, driving prices higher across the industry.

"The unprecedented AI infrastructure growth has changed the semiconductor supply chain, driving insatiable demand," said Neil Shah, vice president of research at the global technology research firm Counterpoint. "The situation is not bound to be better, at least for the next two years."

Are Big Tech profits a mirage?     After months of absorbing higher costs for memory and storage chips, which have quadrupled in price since 2025, Apple says it can no longer absorb the costs. "We have never seen a component price increase this much, this quickly," a company representative told CNET via email. 

But with Big Tech sitting on some of the largest cash piles in history while reporting consistently strong profit margins, many loyal customers are pissed they're being made to foot the bill. Or maybe millions of Americans don't even notice because they're too busy scraping their paychecks to cover groceries, rent, insurance and utility bills, after years of tariffs and inflation. 

On the surface, there's rarely been a better time to be a major technology company. The Magnificent Seven, a moniker for the most dominant companies in the stock market, includes Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Meta and Tesla. Their massive market capitalizations have masked the otherwise decrepit state of the "regular" economy outside of Wall Street, which feels to most of us like it's running on fumes.

Chipmaker Nvidia has become the world's most valuable company, with a record-breaking valuation of $4.7 trillion. SpaceX's initial public offering, which included AI developer xAI, made Elon Musk the world's first trillionaire (for a week or so, at least). AI developers such as OpenAI, Anthropic and Google have raised millions of dollars in investor funding on the promise that their products will change the world.

Despite not being a major player in the AI gold rush (or perhaps because the company took a more cautious approach to AI spending), Apple maintains industry-leading margins, reporting $112 billion in net income in 2025. For the second quarter of 2026, the company reported 17% revenue growth, beating investor expectations.

Except the financial narrative around AI is starting to shift. As Big Tech sheds trillions to finance ever-larger AI server farms -- and turns to debt markets to get the cash -- it's facing new skepticism. Consumers aren't seeing a clear payoff, and investors want tangible returns. AI is increasingly looking like a gigantic money pit. 

Are price hikes really 'unavoidable'?Even though the silicon crunch is real, shifting the burden to consumers is a choice. If any company had the resources to ride out the chip shortage and absorb higher component costs, it's Apple. The Cupertino company's healthy profit margins have helped it weather supply chain disruptions and rocky economic waves better than others, even during the COVID downturn and the subsequent period of peak inflation. 

Anshel Sag of Moor Insights told CNET that Apple is simply not impervious to global market forces. Sag said he believes the tech giant held off on price hikes as long as it could, thereby gaining a short-term competitive advantage. But now things have changed. 

"We are now so deep (almost a year) into the memory shortage that all attempts to stockpile inventory or anticipate price increases have likely been exhausted, and Apple now has to raise prices," Sag said via email. 

The question, then, is whether Apple could have chosen to absorb lower profit margins rather than pass those higher costs on to consumers. Within Silicon Valley, Apple is hardly struggling -- its net profit margin stands at 27%, according to Macrotrends data. That would make these price hikes more of a calculated business decision rather than an economic inevitability. 

In a post on X, US Senator Bernie Sanders accused Cook of corporate greed, noting that the company spent $310 billion on stock buybacks, which artificially boost stock prices and benefit company execs and highly invested shareholders.

 "These price hikes aren't unavoidable. They're unacceptable," Sanders said.

Corporate greed is Tim Cook, the billionaire Apple CEO, claiming that hiking prices on Apple products by over $200 is "unavoidable" after it made $112 billion in profits last year & spent $310 billion on stock buybacks.

These price hikes aren't unavoidable. They're…

— Sen. Bernie Sanders (@SenSanders) June 25, 2026 Are we subsidizing the AI gold rush?  Over the last year, we've seen major tech conglomerates like Google, Microsoft, Meta and Amazon spend huge sums to build massive computer systems for AI. These hyperscalers paid top dollar to secure the available supply of components for their generative AI and large language models, or LLMs -- which then drove up prices across the rest of the tech industry.

Apple, in the meantime, deliberately sat out the massive AI infrastructure spending race. Instead of burning cash on its own AI data centers and cloud warehouses, the company is now integrating Google Gemini models to power its AI-upgraded Siri, while continuing to rely on its own Private Cloud Compute services. At its annual WWDC event earlier this month, Apple made a renewed push into AI, unveiling its overhauled Apple Intelligence offerings.

But Apple's initial restraint didn't protect it from the supply chain fallout. In last week's exclusive interview with Cook, the Wall Street Journal reported that Apple had lost some of its historic buying leverage with suppliers as AI companies secured market share. Now it has to catch up. 

Cook, who is set to step down as CEO on Sept. 1, had also implied during the interview that the company could lean on its own cash reserves to secure memory supply, which could have shielded customers from price hikes. CNET asked Apple why it didn't end up tapping its own cash reserves, but did not get a response.

"Apple is between a rock and a hard place with this situation," Sag said. "The memory suppliers have all the leverage, and Apple's investors wouldn't let them eat the cost difference." 

That leaves us, the regular folk, subsidizing soaring AI costs, even if we don't use the technology and never asked for it. For years, Apple did fine with a subpar AI virtual assistant while Google pulled ahead. And Siri's shortcomings, long a source of criticism for responses like "I'm sorry, I didn't get that," did little to dent demand for Apple products.

In fact, despite the tech industry's continued push for ubiquitous AI, the tech just isn't enough to entice consumers to switch: Only 11% of smartphone owners would upgrade for new AI features, according to a CNET survey. 

Will tech ever be affordable?  Even if higher input costs justified some of Apple's recent price increases, the markups go well beyond simply covering expenses. Take the entry-level MacBook Neo, marketed as an affordable option for students, which saw a $100 price jump just months after its launch, despite no meaningful improvements in hardware features or functionality.

As my colleague Matt Elliot pointed out, Apple seems to be using the widely reported memory shortage as a convenient cover to raise the Neo's price. In reality, the company exhausted its initial supply of surplus smartphone processors for its budget laptop and now faces higher production costs for new A18 Pro chips. 

While the chip shortage explains some of the pressure on Apple, the company treated it like a blank check. And those massive price hikes could have consequences, including dampening buyer demand, since fewer of us can afford Apple products. Apple could also take a hit to its public image, since rising costs are likely to cement the brand's reputation as "elitist" -- though critics have made that point for years. 

Plus, the unprecedented price spike could also freak out investors -- in fact, it already has. After Thursday's price increases, Apple's stock price plunged by over 6%, its worst single-day drop in over a year. 

Still, the tech giant is likely to conquer these hurdles without taking a major sales hit, according to Francisco Jeronimo, vice president of client devices at IDC. "Where a price rise can push a budget Android buyer in an emerging market to delay a purchase or drop to a cheaper brand," Jeronimo said, "the typical Apple customer tends to absorb it."

In large part, that's because Apple has unique market power stemming from its loyal customer base. It's developed financial resilience from that retention and a tightly integrated ecosystem. When you own an iPhone, Apple Watch, AirPods and a MacBook, abandoning one of them means disrupting your entire digital lifestyle. 

And Apple knows it. 

CNET's Katelyn Chedraoui and Blake Stimac contributed to this story. 

AGNC Investment (AGNC +2.59%) pays a very lucrative monthly dividend. The real estate investment trust (REIT) yields over 13.5%. That's more than 10 times higher than the S&P 500's 1.1% yield.

The mortgage REIT has maintained its monthly dividend since resetting the level in 2020. However, that could be harder to do after the Federal Reserve recently hinted that it might start raising rates instead of lowering them. Here is how this potential headwind could impact its dividend.

Image source: Getty Images.

A potential policy shift The Federal Reserve has been slowly reducing the Federal Funds Rate since September 2024. It had lowered that key borrowing rate by 175 basis points by the end of last year to a range of 3.5% to 3.75%. Most Fed watchers anticipated that it would continue lowering rates this year, likely moving the rate closer to 3% by year's end.

However, the Fed has stood pat so far this year amid the war in Iran, which has put upward pressure on inflation. Core inflation, the Fed's preferred measurement, reached 3.4% last month, its highest reading since October 2023. As a result, the Fed has removed key language from its policy statement that indicated a bias toward future rate cuts, while hinting at the possibility of hikes.

This sentiment shift has impacted the Agency MBS market (AGNC Investment's sole focus). CEO Peter Federico stated on the first-quarter conference call that, heading into the year, the market assumption was that there would be about $250 billion of Agency MBS supply, with mortgage rates just below 6%. However, with mortgage rates now in the 6.5% range, MBS supply could be $50 billion to $70 billion lower this year. The higher yields on new MBS put downward pressure on the value of legacy MBS with lower yields. If the Fed does raise rates, mortgage rates would likely rise more, further pressuring MBS values.

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Still commanding a premium This year started positively for the MBS market as the Trump administration focused on reducing interest rate volatility and improving housing affordability. However, the war with Iran turned sentiment negative in March amid increased volatility. This impacted the value of AGNC's MBS portfolio, as its tangible book value declined by 5.6% to $8.38 per share.

However, while its book value declined, the REIT's stock price continued to trade at a premium to book, which it capitalized on by issuing $400 million in new shares during the period. It was able to deploy that capital at a levered return of around 16%, making these new investments accretive compared to its 13.5% dividend yield at the time. With its share price currently above $10.50 apiece, the REIT can continue to sell stock at a premium to its book value to make accretive new investments.

A higher risk, high-yielding dividend stock Changes in interest rates impact the value of AGNC Investment's MBS portfolio. The REIT, like most Fed watchers, expected that rates would fall this year, increasing the supply of lower-rate MBS. However, the Fed recently hinted that it might resume rate hikes amid the war-driven inflationary uptick. While that would put more downward pressure on the value of its portfolio, the REIT can still issue stock at a premium to buy higher-yielding MBS, which could enable it to continue maintaining its dividend. Even still, it's a higher risk, high-yielding income stream that income investors might not always be able to bank on in the future.

Pfizer's (PFE +2.62%) shares have lost more than 50% of their value since late 2021 due to poor financial results. The company has tried to bounce back. Notably, it has expanded its pipeline through acquisitions, the most expensive one of which was its $43 billion buyout of Seagen, a cancer-focused drugmaker, in 2023. However, recent developments may suggest to some that Pfizer's efforts to turn things around are not going to work, and the stock may continue moving south.

Image source: The Motley Fool.

A clinical trial flop and a leadership shake-up One of the promising candidates Pfizer got access to through its acquisition of Seagen was sigvotatug vedotin, an investigational medicine for non-small cell lung cancer (NSCLC), one of the leading causes of cancer death in the world. This is a large market that could help Pfizer generate billions of dollars annually, provided it can gain a foothold in it with this therapy. Unfortunately, that now seems unlikely to happen.

Pfizer recently reported that in a phase 3 clinical trial in previously treated NSCLC patients, sigvotatug vedotin failed to show a statistically significant improvement in overall survival, a key endpoint in cancer clinical studies. In the trial, the medicine was pitted against docetaxel, a chemotherapy medication. These results make it unlikely that sigvotatug vedotin will make significant headway in this narrow indication.

Further, there was more negative news for Pfizer recently. On June 18, the pharmaceutical giant announced that its CFO, Dave Denton, would leave the company on Aug. 15. The market is sometimes wary of leadership changes, especially for a company that has been struggling as much as Pfizer has in recent years. It's also worth noting that the drugmaker will face even more challenges ahead. Pfizer's anticoagulant, Eliquis, one of its best-selling drugs, will lose patent exclusivity by the end of the decade. With all that going on, is it time to give up on Pfizer?

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Focus on the long-term It's a bit premature to definitively say that Pfizer's blockbuster acquisition of Seagen was a waste of money. After all, the company is already benefiting from some of the products the buyout added to its portfolio. For instance, Padcev, a medicine for bladder cancer, is currently an important growth driver for Pfizer. In the first quarter, sales from this therapy totaled $591 million, up 39% year over year. There are also other clinical trial candidates that Pfizer inherited from Seagen that could make significant headway in the next few years.

Elsewhere, Pfizer has other attractive pipeline products that may also help it rebound. The company's work in the weight-loss market finally got a boost -- also thanks to an acquisition -- after several internally developed products went nowhere. Pfizer's GLP-1, MET-097i, showed strong results in phase 2 studies and could eventually become an important medicine in this category. The drugmaker boasts other candidates in areas such as immunology, vaccines, and more.

And some of its newer approvals, such as Abrysvo, a respiratory syncytial virus vaccine, are also performing well. Lastly, Pfizer is a solid dividend stock, with a juicy forward yield of 7.3%. All these factors make the stock attractive, and the CFO change shouldn't alter its prospects much. Pfizer may not bounce back immediately, but the stock could eventually do so as it advances through clinical and regulatory milestones over the next five years. That's why its shares are still a buy.

Is Alphabet's (GOOG 2.19%) (GOOGL 1.73%) run finally over? The company's shares had been performing very well, but over the past month, Alphabet has lost momentum, with its stock price declining 13%. There are several factors behind Alphabet's recent dip, but the company's prospects remain intact, making it an excellent stock to buy right now. Here's why.

Image source: The Motley Fool.

The spending is justified Alphabet has recently lost some key employees, including John Jumper, a leading artificial intelligence (AI) expert and Nobel laureate, who left the company to join Anthropic. On top of that, investors are increasingly worried about Alphabet's AI-related spending. The company recently announced an $80 billion equity capital raise to fund its AI ambitions. The tech leader expects capex spending -- which should be in the $180 billion to $190 billion range this year -- to rise significantly in 2027.

If Alphabet's spending doesn't pay off, we could see decreased revenue growth as profits and margins compress. However, the data we have suggests that Alphabet is right to invest heavily to fuel its AI business. In the first quarter, the company's revenue from its cloud segment, Google Cloud, was about $20 billion, up 63% year over year. It grew much faster than the rest of the business. Alphabet's total revenue came in at $109.9 billion, 22% higher than the year-ago period. Google Cloud's sales growth also accelerated significantly from the already impressive 48% it posted in Q4 2025.

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One of the key drivers of this performance was Alphabet's AI business. The company reported that sales from products built on its generative AI models grew by almost 800% year over year in the first quarter. Further, Alphabet ended the period with a cloud backlog of $462 billion, which almost doubled from the previous quarter. This highlights sustained -- and even accelerating -- demand for its cloud services, especially its AI products, which are helping drive incredible growth. So, it makes sense that Alphabet continues to spend, as there may still be lucrative opportunities to tap into.

Multiple other growth drivers One of the great things about Alphabet's business is its relative diversification. Cloud computing and AI may be driving much of the growth right now, but the advertising business is also performing well. Alphabet has a nearly insurmountable lead, with the undisputed top search engine in the world, a strong brand name associated with it, and network effects that allow it to grow search queries and improve results, thanks to the massive data at its disposal.

That's to say nothing of the company's strong position in video sharing and streaming through YouTube, which also generates substantial ad sales and recurring subscription revenue. The best part is that the digital advertising market is still on a growth path and will continue contributing massively to Alphabet's results for a long time, and the streaming market should also expand over the next decade.

Beyond that, Alphabet has potential opportunities that aren't currently contributing to sales growth but might eventually do so, such as its work in the autonomous vehicle market through Waymo. All of these initiatives highlight Alphabet's attractive long-term prospects. And after the company's recent slump, it is a great opportunity to buy its shares on the dip and hold them for the long term.

Intel (INTC 3.20%) was once at the top of the semiconductor industry. But after arriving late to the AI boom, losing its technological edge to rivals like Advanced Micro Devices and Taiwan Semiconductor Manufacturing, and stumbling out of the gate in the competitive foundry business, its dominance turned into a sobering lesson in how quickly even the best chip companies can fall.

Image source: Getty Images.

Lately, though, a string of wins suggests Intel's AI bet is finally starting to pay off, raising a fair question: Is it time to reconsider this stock? The fact is, revenue is improving, foundry partnerships are stacking up, and investor confidence is clearly back.

Still, headlines don't tell the whole story. To see whether Intel's momentum is real, investors need to look at where the company actually stands in AI and what's driving this move.

From $40 to $130 in half a year? How? Intel's stock price action has been hard to ignore. Shares are up more than 230% year to date and 484% over the last 52 weeks, and the stock recently pushed through $140 to a new all-time high.

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That kind of rally doesn't happen for just one reason. Intel's cost-cutting is starting to show up in the numbers, and its renewed focus on AI is catching investors' attention.

But the biggest contributors have been partnerships with major AI players. In April, Intel announced a deeper collaboration with Alphabet to expand the use of its Xeon CPUs and custom IPUs for AI workloads.

Around the same time, Intel joined the Terafab project as a strategic partner alongside Space Exploration Technologies and Tesla, contributing design, fabrication, and advanced packaging capabilities. Intel is set to serve as a key manufacturing partner.

Is it ambitious, like perhaps one of Elon Musk's projects? Absolutely. But SpaceX and Tesla are willing to spend real money to try, and that's exactly the kind of business and validation Intel has lacked in recent years.

That brings us to the biggest catalyst behind the stock's move: the foundry business.

Foundry generated $5.4 billion in revenue in Q1 For years, Intel Foundry was viewed as a giant money pit.

Intel poured tens of billions into advanced manufacturing capacity, process technology, and fab expansions, while the segment reported multibillion-dollar operating losses. Investors were asked to be patient, even as the losses kept piling up.

Now, the narrative is shifting.

As mentioned earlier, Foundry's latest quarterly revenue is becoming a meaningful part of the business. It suggests Intel no longer has to rely solely on selling its own processors. It can also manufacture chips for other companies. And with the AI boom still in full swing, hyperscalers are spending billions to secure leading-edge silicon. That gives Intel a chance to capture a piece of a market it entered late.

Operating losses are also in the billions To be clear, Foundry is still unprofitable. In the first quarter of FY 2026, the segment reported an operating loss of about $2.44 billion , with Intel remaining in the red on a GAAP basis. Net loss also ballooned more than 350% year over year.

Nobody expected Foundry to flip to profitability overnight, though. The more important point is that revenue is moving in the right direction. Partnerships with hyperscalers and AI leaders add credibility, which could translate into a real advantage in contract manufacturing.

If Intel keeps executing on its roadmap, improves yields, and wins a few more high-profile clients, its original Foundry vision could eventually materialize.

Is Intel a buy today? Intel stock currently carries a buy rating from Wall Street. Still, more analysts are leaning toward a hold as the stock approaches its price target, and that hesitation makes sense.

It's one thing to reinforce the story with partnerships and improve revenue. It's another to turn that good news into steady, durable profits. Investors will need more validation. But at this point, it does look fair to say Intel's foundry bet is no longer just a costly experiment. It's a legitimate path to future growth, and a big reason some investors are taking a fresh look at the stock.

Walter Field McLallen, a director of OneSpaWorld Holdings Limited (OSW +3.38%), reported the sale of 10,500 shares of Common Stock in an open-market transaction on June 11, 2026, according to a SEC Form 4 filing.

Transaction summaryMetricValueShares sold (direct)10,500Transaction value$259,035Post-transaction shares (direct)137,382Post-transaction value (direct ownership)~$3.41 millionTransaction value based on SEC Form 4 weighted average purchase price ($24.67).

Key questionsHow does this transaction compare to McLallen's historical sale patterns?
Since July 2023, McLallen has executed sell transactions averaging approximately 13,524 shares each.What is the impact of this sale on McLallen's ownership position in OneSpaWorld?
The sale reduced McLallen's direct Common Stock holdings by 7%, leaving a post-transaction balance of 137,382 shares.Were any shares disposed of through indirect entities or derivatives in this filing?
No; all 10,500 shares were sold from direct holdings, with no indirect transactions (such as those involving trusts or LLCs) or derivative exercises involved in this event.Company overviewMetricValuePrice (as of market close 6/11/26)$24.67Revenue (TTM)$989.00 millionNet income (TTM)$77.68 million1-year price change37.14%* 1-year performance calculated using June 11th, 2026 as the reference date.

Company snapshotOneSpaWorld offers a comprehensive suite of spa, wellness, fitness, and beauty services, including traditional therapies, medi-spa treatments, and branded retail products, primarily on cruise ships and at premium destination resorts.The firm operates under a service-based business model, generating revenue through direct provision of health and wellness services, product sales, and exclusive brand partnerships within its facilities.It targets cruise line passengers and resort guests seeking premium wellness experiences, with a focus on high-value leisure travelers and vacationers.OneSpaWorld Holdings Limited is a leading global provider of health and wellness services, operating an extensive network across cruise ships and destination resorts. The company leverages exclusive brand partnerships and a broad service portfolio to address the growing demand for premium wellness experiences among leisure travelers. Its scale and integrated offering underpin a strong competitive position within the leisure and hospitality sector.

What this transaction means for investorsMcLallen has been a consistent seller over the past several years, and this transaction falls below his average sale size while leaving him with a sizable stake in the company.

More importantly for long-term investors, OneSpaWorld reported record first-quarter revenue of $247.6 million, up 13% year over year, while net income climbed 40% to $21.3 million and adjusted EBITDA increased 21% to a record $32.2 million. CEO Leonard Fluxman said the company has now delivered 20 consecutive quarters of record revenue and adjusted EBITDA, citing strong execution and continued demand across its cruise ship and resort network. Management also raised its full-year outlook, now expecting as much as $1.034 billion in revenue and up to $139 million in adjusted EBITDA, while highlighting plans to launch operations on six new cruise ships this year.

With shares up 37% over the past year, it's not surprising to see some insiders lock in gains. Still, McLallen retained more than 137,000 shares after the sale, suggesting his interests remain aligned with shareholders. Investors should focus less on this relatively modest disposition and more on whether the hospitality provider can continue translating strong cruise demand into higher earnings, cash flow, and shareholder returns.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The SoFi Technologies (SOFI +3.35%) stock price has been climbing over the past month, which is welcome news for shareholders. That's because, as of June 24, shares are down more than 30% on the year.

SoFi will likely report its 2026 second-quarter earnings results in late July or early August, which could help decide the next direction for the stock price. In the report, there will be a few updates that investors will want to follow.

Image source: Getty Images.

Will forward guidance be maintained? In its 2026 first-quarter earnings report, SoFi maintained its adjusted full-year revenue and adjusted full-year net income guidance of $4.6 billion and $825 million, respectively. Even without boosted guidance, that would still be a 30% increase in net revenue and a 72% increase in net income from its 2025 totals. That said, expectations are still high.

If forward guidance is strengthened, it could fuel a stock price rally. If guidance is maintained and the rest of the results underwhelm, the stock price would likely dip lower.

Member growth and cross-selling For Q1 2026, SoFi added 1.1 million new members, setting a record. That also marked the third straight quarter of 35% growth in its member totals, which reached 14.7 million.

As SoFi adds new members, it's also focusing on cross-selling products. In what SoFi calls its financial services productivity loop, it includes everything from home loans to student loans to an investing platform to credit cards. SoFi is seeing more existing customers signing up for more products in that productivity loop.

That should help it rely less on new members for long-term revenue growth, and it is a sign that the company has an opportunity to generate more revenue from current members. This next earnings report will offer a look into whether that momentum is continuing or has stalled.

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Updates on a slumping division In the first quarter, SoFi reported disappointing results for its Technology Platform, which basically powers the infrastructure for banks and other financial entities to build and run apps. That division's revenue fell 27%, with SoFi mentioning the loss of a major client.

SoFi is rebranding that platform to SoFi Technology Solutions for enterprise clients, offering them products and services across processing, banking, core ledgers and services, payment hubs, and risk and fraud. The second quarter will offer insight into whether that part of SoFi's business is returning to growth or is still experiencing declining revenue.

Investment considerations After climbing 70% in 2025, SoFi stock has struggled to find its footing in 2026. Its upcoming Q2 2026 earnings report can help establish the direction that shares move next, but long-term investors can view it more as a progress report.

The fintech operator will need to show that the loss of that client, mentioned in Q1 2026, was a one-time issue and that revenue is growing again in its SoFi Technology Solutions division. It will also need to show it's continuing to add new members at a steady pace, and that it's connecting current members with more of its products and is effectively creating cross-selling opportunities.