Implementation expected November 5, 2026; new Critical Metals Corp shares expected to begin trading on Nasdaq November 6, 2026
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Critical Metals Corp
NEW YORK, Oct. 27, 2026 (GLOBE NEWSWIRE) -- Critical Metals Corp. (Nasdaq: CRML) (“Critical Metals Corp” or the “Company”), a leading critical minerals exploration and mining company, today announced that the schemes of arrangement for its proposed acquisition of European Lithium Limited (ASX: EUR, FRA: PF8, OTC: EULIF) (“European Lithium”) have become legally effective.
Under the proposed transaction, Critical Metals Corp would acquire 100% of the issued share capital of European Lithium and all of European Lithium’s listed options by way of Court-approved schemes of arrangement under Part 5.1 of the Australian Corporations Act 2001 (Cth), comprising a scheme between European Lithium and its shareholders (the “Share Scheme”) and a scheme between European Lithium and the holders of its listed options (ASX: EUROC) (the “Option Scheme”, and together with the Share Scheme, the “Schemes”). The consideration payable under each Scheme is to be satisfied by the issue of new ordinary shares in Critical Metals Corp.
Schemes Effective
European Lithium has announced that it has lodged with the Australian Securities and Investments Commission an office copy of the orders made by the Supreme Court of Western Australia (the “Court”) on October 26, 2026 approving the Schemes. Accordingly, the Share Scheme and the Option Scheme are now effective. European Lithium shares and options are expected to be suspended from trading on the ASX from the close of trading today.
Critical Metals Corp intends to rely on the Court’s approval of the Schemes as the basis for an exemption under section 3(a)(10) of the U.S. Securities Act of 1933, as amended, from the registration requirements of that Act in connection with the issue of new Critical Metals Corp shares under the Schemes.
Scheme Consideration
Under the Share Scheme, eligible European Lithium shareholders will receive 0.045 new Critical Metals Corp shares for each European Lithium share held at the record date, being the transaction ratio announced on October 21, 2026.
Under the Option Scheme, each European Lithium option on issue at the record date will be exercised on a cashless basis, and eligible optionholders will receive new Critical Metals Corp shares calculated in accordance with the formula set out in the scheme booklet dated September 15, 2026. European Lithium will announce the exchange rate and the final number of new Critical Metals Corp shares to be issued for each option on October 28, 2026.
Next Steps
The remaining key dates are expected to be:
October 28, 2026: Announcement of the exchange rate and the number of new Critical Metals Corp shares to be issued for each European Lithium optionOctober 29, 2026: Record date for entitlements to the scheme considerationNovember 5, 2026: Implementation date and provision of the scheme consideration to European Lithium securityholdersNovember 6, 2026: New Critical Metals Corp shares expected to begin trading on Nasdaq, and European Lithium removed from the ASX Official List Dates for events in Australia refer to Perth time. All dates are indicative only and subject to change. Any changes will be announced by European Lithium on the ASX.
About Critical Metals Corp.
Critical Metals Corp (Nasdaq: CRML) is a leading mining development company focused on critical metals and minerals, and producing strategic products essential to electrification and next-generation technologies for Europe and its Western world partners. Its flagship Project, Tanbreez, is one of the world's largest rare earth deposits and is located in Southern Greenland. The deposit is expected to have access to key transportation outlets as the area features year-round direct shipping access via deep water fjords that lead directly to the North Atlantic Ocean.
Another key asset is the Wolfsberg Lithium Project located in Carinthia, 270 km south of Vienna, Austria. The Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure and is expected to be the next major producer of key lithium products to support the European market. Wolfsberg is well positioned with offtake and downstream partners to become a unique and valuable asset in an expanding geostrategic critical metals portfolio.
With this strategic asset portfolio, Critical Metals Corp is positioned to become a reliable and sustainable supplier of critical minerals essential for defense applications, the clean energy transition, and next-generation technologies in the western world.
For more information, please visit https://www.criticalmetalscorp.com/.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements may include expectations of our business and the plans and objectives of management for future operations, including with respect to the proposed acquisition of European Lithium and the anticipated timetable for and implementation of the Schemes. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “designed to” or other similar expressions that predict or indicate future events or trends or that are not statements of historical facts. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors discussed under the “Risk Factors” section in the Company’s Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission. These forward-looking statements are based on information available as of the date of this news release, and expectations, forecasts and assumptions as of that date, involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Celestica stock is flying in the premarket today, as investors cheered its financial results, which showed that its growth accelerated amid the ongoing AI boom. It jumped by over 26%, making it one of the best-performing companies in Wall Street.
Hourglass Capital LLC purchased a new position in shares of SpaceX (NASDAQ: SPCX) in the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 38,307 shares of the company's stock, valued at approximately $5,779,000. A number of other institutional investors and hedge funds
I'll admit it; I was a Space Exploration Technologies (SPCX +1.27%) skeptic when it first debuted on the public markets in June. While I wasn't skeptical of the business, I was skeptical of the $2 trillion valuation it went public at. However, my opinion has shifted a bit, especially after seeing its latest results.
The third-quarter report was incredible, and included several exciting developments for investors. All of this has me considering investing in SpaceX's stock, so I wanted to run some hypothetical calculations to see what kind of returns the stock could conceivably deliver through 2028.
I think there is a good chance SpaceX will be a far bigger company than it is right now in a couple of years, and that it could turn a $5,000 investment made today into a position worth $12,500 by the end of 2028.
Image source: The Motley Fool.
SpaceX is doing great in every area except the one you'd expect
SpaceX splits its business into three parts: space, connectivity, and "super intelligence" (its new name for what it previously called artificial intelligence). Space is the division you likely think of first when SpaceX comes to mind. It includes the impressive technology that launches rockets into space and lands them safely back on Earth for reuse on future missions. The reality is that this division doesn't hold a candle to the other two despite being the company's primary segment. The space division grew from $962 million in Q2 to $1.77 billion in Q3 -- strong, but still far less than what its other divisions delivered. However, its year-over-year growth was from $1.67 billion to $1.77 billion -- not much of an increase.
SPCX Space Exploration Technologies$148.77+$1.87 (+1.27%)
NASDAQ · As of 9:34 AM ET 10/27/26
Its connectivity division delivered another impressive quarter. This division is essentially the Starlink broadband service, which can provide satellite-based internet connectivity to customers in almost every part of the world. Its revenue increased from $3.1 billion last year to $5.3 billion this year. However, what's more notable about connectivity is that its operating income totaled $2.37 billion, which was a major factor in SpaceX delivering its first profitable quarter.
But the super intelligence segment stole the show in Q3, as it delivered 830% growth. With revenue totaling $7.56 billion (up from $813 million a year ago), it is now SpaceX's largest division. This rapid growth rate could persist for some time, as demand for AI products (like its Grok AI model or Grok Bots) is rapidly increasing.
SpaceX has a pretty broad range of businesses, but where will that lead the stock in a few years?
Projecting SpaceX's stock price is no easy task
SpaceX's wide-ranging businesses make it harder to estimate than most other businesses. Additionally, we don't have a full year's worth of public results to give us a clearer picture of the space segment's seasonality. However, CEO Elon Musk has asserted that the company's annual recurring revenue could reach $500 billion to $1 trillion by the end of 2027. Musk is known to make ambitious predictions for his companies and then miss those targets, but even then, they do sometimes come close. And SpaceX could undershoot Musk's forecast and still deliver impressive results.
But let's consider what SpaceX stock might look like if it ends up generating $500 billion in revenue by the end of 2028.
Depending on how it is valued and where its profit margin lands, there are a wide range of outcomes. Most big tech companies tend to trade for about 10 times sales, with some being higher or lower based on market sentiment. Should SpaceX trade at 10 times sales and reach $500 billion in revenue, that would value the stock at $5 trillion, or about 150% higher than it's priced today.
That would turn a $5,000 investment into about $12,500 in just a few years, making SpaceX a stock that investors should consider buying now.
InvesTrust trimmed its stake in shares of Apple Inc. (NASDAQ: AAPL) by 17.2% during the third quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 21,040 shares of the iPhone maker's stock after selling 4,366 shares during the quarter. Apple accounts for about 2.6% of
First Pacific Financial reduced its position in shares of Apple Inc. (NASDAQ: AAPL) by 14.8% in the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 16,601 shares of the iPhone maker's stock after selling 2,883 shares during the period. First Pacific
Fort Washington Investment Advisors Inc. OH lifted its position in shares of Apple Inc. (NASDAQ: AAPL) by 10.6% in the third quarter, according to its most recent 13F filing with the SEC. The firm owned 2,818,642 shares of the iPhone maker's stock after purchasing an additional 269,347 shares during the quarter. Apple comprises
Howard Financial Services LTD. raised its position in shares of Apple Inc. (NASDAQ: AAPL) by 3.3% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 96,581 shares of the iPhone maker's stock after acquiring an additional 3,075 shares during the
HBW Advisory Services LLC lowered its stake in Apple Inc. (NASDAQ: AAPL) by 7.3% during the third quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 46,282 shares of the iPhone maker's stock after selling 3,661 shares during the quarter. Apple makes up about 1.5%
Apple Responds to Foldable iPhone Screen Failures as Repair Costs Hit $999
Summary
Apple is offering replacements for some foldable iPhone Duo devices after users reported bright lines and display damage around the hinge
Apple AAPL is offering replacements for a limited number of its first foldable iPhone Duo devices after owners reported damage to the inner display within days of launch.
Reports described cracked screens and bright lines appearing around the central hinge, where the device folds. Apple has not disclosed how many phones are affected or what caused the failures.
Customers experiencing display problems are being directed to AppleCare for replacement support. The phone starts at $1,999, while Apple's website lists an out-of-warranty inner-screen repair at $999.
Independent repair firm iFixit examined the handset and suggested a central support bar near the hinge could put pressure on the flexible display. That explanation remains unconfirmed, and Apple has not publicly attributed the damage to a specific component.
Early complaints come as Apple enters the foldable-phone market, where screen durability has been a challenge. Samsung faced a similar setback in 2019 after users reported display failures in its first Galaxy Fold. Apple's replacement policy offers affected buyers a remedy, but the scale and cause of the problem remain uncertain.
Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Apple's first foldable iPhone started cracking within days of launch, and the timing could not be worse for a company balancing a $5 trillion valuation on a razor-thin cushion.
Apple’s first foldable phone has just reached customers, and on October 26, 2026, the company admitted that some units are breaking at the fold.
Apple (NASDAQ:AAPL | AAPL Price Prediction) confirmed a defect in the inner folding display of the $1,999 iPhone Duo. The phone reached stores on October 23, after preorders sold out within minutes on October 16.
Shares fell 1.1%, or $3.81, to $343.91, then traded at $343.64 after hours. Part of that decline came from a bearish Jefferies note ahead of earnings and from a reaction to a pricier iPad mini, so the cracks add a new drag on pressure that was already there.
Apple is worth $5.019 trillion. That is roughly $19 billion above the $5 trillion mark it first closed above on October 14, 2026, at $342.96 a share.
A slide of about 0.4%, to near $342.60, would wipe out that buffer. Apple remains above that level, although routine headline risk is now likely enough to push it below.
What Apple Admitted, and What It Left Out
Apple’s statement read: “We are aware of an issue impacting the inner display on a small number of iPhone Duo units. If users experience issues with their iPhone Duo display, they should contact AppleCare for a replacement.”
Bloomberg confirmed the problem with more than half a dozen customers through photos and support records. Apple has not given a unit count, a cause, or a timeline for a fix.
Owners describe a crunching sound when they unfold the phone, a crack along the center crease, and a white patch on the right side of the screen. Some of the crack photos circulating online appear to be AI-generated, which makes any count harder to trust.
You do not need AppleCare+ to get a replacement. Stock is limited, though, and some owners are still waiting, so the fix could turn into a supply problem of its own.
A Precision Hinge With a Known Stress Point
iFixit gave the Duo a preliminary repairability score of 5 out of 10, its best for a foldable. The teardown also found a stress hotspot where the screen’s curved fold presses down on the hinge’s center support bar, near where breaks have been reported.
Kyle Wiens, who wrote the teardown, said that “a manufacturing variance or grain of sand can kill the fragile display panel” the hinge protects. That is a theory, and Apple has not confirmed it.
Out of warranty, Apple charges $999 to repair the inner screen. That price is why the free-replacement window matters so much to every owner.
Why a Thin Cushion Matters at This Valuation
Crossing below $5 trillion would leave Apple’s cash flow unchanged, although round numbers drive headlines, and headlines drive short-term trading.
Apple trades at about 45 times earnings, with a free cash flow yield of 1.97%. Free cash flow yield is the cash the business generates as a share of its market value. A price that high assumes Apple’s new product cycles keep succeeding.
iPhone revenue reached $54.25 billion in fiscal third-quarter 2026, up from $44.58 billion a year earlier. The Duo was supposed to extend that run, so a flaw in its first week hits the growth story investors are paying for.
NVIDIA (NASDAQ:NVDA) rose 2.39% to $216.00, which puts its value at $5.215 trillion, about $196 billion ahead of Apple.
Apple also revealed a redesigned iPad mini with an 8.5-inch OLED display. It starts at $699, up from $599, and preorders open on October 28, the same day as Apple’s “Pro and tell” event in Los Angeles.
Apple reports fiscal fourth-quarter results after the close on November 2. Either date gives Apple a chance to name a cause and say how many units are affected.
What the Duo Defect Means for Apple Investors
Apple’s core business looks largely protected from the problem. As stated, the defect affects a small number of units of one new model. The iPhone 17 lineup that drove fiscal 2026 growth is not affected.
At $1,999, the Duo is a niche product inside a much larger iPhone business, so even a messy launch is unlikely to materially reduce earnings.
The bigger risk is if Apple stays quiet. If the company gets to the November 2 report without naming a cause or a fix, a small defect becomes a question about whether premium prices still buy premium reliability.
If Apple closes below $342.60, stays there through the November 2 report, and has still said nothing about the cause, the market is treating the defect as more than a minor problem, and this view would be wrong.
Contact [email protected] for any questions or corrections.
Sell AAPL. The company is already acknowledging inner-display faults on a “small number” of iPhone Duo units, with reports of issues within hours of purchase. That’s an early-failure signal that can force costly replacements, slow retail momentum, and keep investors focused on foldable durability risk instead of iPhone growth. Key catalyst: any follow-up that expands the affected-unit count or delays Duo ramp.
Key Risk: Apple proves the issue is limited and quickly fixable (root cause identified, no broader reliability problem), letting Duo demand re-accelerate and the stock re-rate.
Foldable supply-chain short
Sell Samsung Display (SDI) and/or short a foldable-display exposure ETF like SOXX. The news reinforces that foldable inner displays are failing early (cracks/lines near the hinge). That raises warranty/rework risk and pressures pricing for suppliers tied to foldable panels, not just Apple’s device.
Key Risk: Foldable display yields improve fast and the market concludes Apple’s issue is unique to Duo’s design/materials, not the broader supply chain.
Apple AAPL shares fell 0.40% in premarket trading on Tuesday as the company acknowledged display problems affecting some of its newly launched foldable iPhone Duo devices and offered replacements to customers with faulty units.
The decline extended Monday’s losses, when Apple shares fell despite a broader market rally led by technology stocks.
The weakness also diverged from the wider market on Tuesday, with futures linked to all three major US indexes trading higher ahead of the opening bell.
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Apple’s Duo display fix signals a fast response to early faults.
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Apple began shipping its first foldable smartphone last week amid reports of strong demand and limited supply.
However, early users have reported cracks and lines appearing on the inner display near the hinge, where the device folds. Some customers have also complained of a cracking sound when opening the phone.
NEW: iPhone Duo screen-cracking issue is real. Apple hasn’t given stores or customer service representatives guidance but the company is investigating. Several people have sent me images and stories of their new $2000 device breaking within hours. bloomberg.com/news/articles/…
Bloomberg reported that some users encountered display faults within hours of purchasing the device. Apple has acknowledged the problem but has not disclosed its cause or the number of units affected.
“We are aware of an issue impacting the inner display on a small number of iPhone Duo units,” Apple said in a statement. “If users experience issues with their iPhone Duo display, they should contact AppleCare for a replacement.”
The company has not provided further details about the reported defects or whether they are linked to the phone’s folding mechanism.
Screen durability has been a challenge for manufacturers entering the foldable smartphone market, with Samsung also encountering display-related problems during the early stages of its foldable-device launches.
Beyond hardware complaints, some iPhone Duo users have pointed out that several applications have yet to be optimised for the device’s folding screen. Apple has described app development for the new form factor as an ongoing process.
“The response to iPhone Duo from early users has been incredibly positive, and we are seeing exciting things from developers who are rapidly updating their apps to take advantage of its unique form factor,” an Apple representative said in a statement.
Separately, Apple’s latest iPhone sales have offered a more mixed picture than reports of lukewarm demand for the iPhone 18 Pro lineup might suggest.
Counterpoint Research said global sales of the iPhone 18 series were 3.1% higher than those of the iPhone 17 Pro series. China led the increase, with year-over-year sales growth of 29%.
However, sales declined 4% in the US and 27% in Japan, highlighting differences in demand across major markets.
Counterpoint said US consumers were not willing to upgrade from previous models with the new ones priced higher. In Japan, demand shrank as exchange rates amplified the price increases.
The latest figures provide some support for Apple’s broader smartphone business, but the launch of its first foldable device introduces a new test for the company.
Apple just logged its ninth straight earnings beat while Siri AI sits at the center of a battle between surging services growth and mounting memory costs that could push the stock in opposite directions.
The 24/7 Wall St. price target for Apple (NASDAQ:AAPL | AAPL Price Prediction) is $398.25 over the next 12 months. That means 15.77% upside from the $343.99 October 21 close. Shares traded at $345.36 late this morning. Our rating is buy, and the model’s confidence is high.
Metric
Value
Current Price
$345.36
Price Target from 24/7 Wall St.
$398.25
Upside/Downside
15.77%
Recommendation
BUY
Confidence Level
90%
Our high confidence comes from how broad Apple’s growth has become. iPhone, Mac and Services all grew by double digits last quarter. The new Siri AI also gives Apple’s installed base of more than 2.5 billion active devices a reason to upgrade their hardware and pay for more services.
Nine Straight Beats Keep Apple Near Its 52-Week High
Apple is up 27.39% year to date and 31.92% over the past year. It has gained 1.88% over the past month. Shares sit about 6% below the 52-week high of $348.15 and well above the low of $242.76.
For fiscal Q3, Apple reported revenue of $109.42 billion (+16.4% YoY). EPS came in at $2.02 against a $1.89 estimate, the company’s 9th straight EPS beat. This week, Bloomberg called Apple investors’ favorite AI hedge because of its cash flow.
CNBC reported that the iPhone Duo is in short supply. The July call was also Tim Cook’s last, and John Ternus was named to lead future calls.
Why Bulls See Siri AI Pushing Apple Past $450
Cook described Siri AI as “a completely reimagined version of Siri that is profoundly capable, deeply personal, and integrated seamlessly across our platforms.” Apple can also make money from it through iCloud+ upgrades, where users “can buy up the stack.”
Services already brought in $30.7 billion (+12%), with more than one and a half billion paid subscriptions. Mac revenue rose 29% as customers use it for on-device AI work. A new $100 billion buyback and a dividend raised to $0.27 also support the stock.
Among analysts, 6 rate it Strong Buy and 19 rate it Buy. The bull case hits $452.19, a 31.46% gain.
Memory Costs and Supply Limits Could Stall the Rally
Cook called memory pricing “a 100-year flood,” and Apple has reluctantly raised prices. Guidance calls for a September-quarter gross margin of 47%-48%, which includes one-time tariff refunds.
Last quarter, those refunds added 2pp to margin and $0.11 to EPS. Siri AI’s launch in the EU and China still needs regulatory work, and 6 analysts rate the stock Sell or Strong Sell.
Operating expenses rose 23% because of R&D spending that funds AI. Cook also said the supply crunch is “a demand forecast issue.” The bear case hits $337.78, a modest 1.8% decline.
Is Apple Pricier Than Microsoft and Alphabet?
Company
P/E
FCF Yield
Net Margin
Apple
45x
1.97%
26.9%
Microsoft
30x
1.69%
40.3%
Alphabet
15x
1.76%
32.8%
The closest megacap AI platform to compare with Apple is Microsoft (NASDAQ:MSFT). Its Azure business grew 43%, but Q4 free cash flow fell 23.19% as capex rose 109.63%.
Direct competition with Apple comes from Alphabet (NASDAQ:GOOGL) through Android and Gemini. Its low P/E is inflated by a $99.03 billion gain on equity securities. Alphabet’s Q2 free cash flow was negative $5.855 billion, and it suspended buybacks.
Apple has the highest multiple of the three. It is also the only one funding AI without giving up shareholder returns. Next to these peers, the 24/7 Wall St. price target looks reasonable.
Bottom Line: Siri AI Tips the Scale Toward Upside
The 24/7 Wall St. price target remains at $398.25, with a buy rating and high confidence. The key driver is earnings growth that is still outpacing Apple’s multiple.
The outlook improves if Siri AI drives more iPhone upgrades and iCloud+ sign-ups. The outlook weakens if memory costs push gross margin below guidance. On balance, our model points to further upside for Apple.
Looking further out, here is where the model projects Apple trading if current growth trends hold.
Year
Price Target from 24/7 Wall St.
2026 (Dec.)
$349.65
2027 (Oct.)
$397.25
2028 (Oct.)
$443.95
2029 (Oct.)
$491.53
2030 (Oct.)
$523.62
The projections rest on Apple continuing to execute on its current strategy. By 2030, a strong Siri AI launch could lift the stock toward $625.31, while persistent margin pressure points closer to $367.52.
Contact [email protected] for any questions or corrections.
Meta Platforms, Inc. (NASDAQ: META - Get Free Report)'s stock price crossed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $632.84 and traded as low as $627.80. Meta Platforms shares last traded at $630.56, with a volume of 30,837,434 shares. More Meta Platforms
Stock splits are a form of financial engineering that companies can use to alter their stock prices for a whole host of reasons. They essentially allow companies to simultaneously change their stock price and share count outstanding without moving the market cap.
Companies may conduct traditional stock splits if their stock price has risen significantly and they want to make it feel more affordable, particularly for retail investors. This also increases the number of shares outstanding and, therefore, liquidity.
The opposite of a traditional stock split is a reverse stock split, which can raise a company's stock price if it has fallen out of minimum price compliance on a major exchange.
Wall Street just learned about its next major stock split, scheduled for 2027. It's being done by a major artificial intelligence (AI) company whose stock has surged 1,615% during the past 14 years since its initial public offering (IPO).
Image source: Getty Images.
Maintaining control of voting power During its third-quarter earnings report, the "Magnificent Seven" AI hyperscaler Meta Platforms (META -0.83%) said that it plans to conduct a 2-for-1 stock split on Jan. 19, 2027.
In a traditional 2-for-1 stock split, shareholders will see their share count double. The stock price will then be cut in half, so the market cap remains unchanged.
Meta plans to create a newly established Class C non-voting common stock, so every Class A and super-voting Class B shareholder will receive one share of the newly created Class C stock.
One reason for the move, according to Meta's earnings report, is to ensure that co-founder and Chief Executive Officer Mark Zuckerberg maintains his voting control, which is more than 60% of the voting shares, mainly through his ownership of super-voting Class B shares, according to a recent securities filing.
"The Special Committee concluded that Mr. Zuckerberg is best suited to lead Meta into its next era and beyond. They recognized that Meta's track record of significant value creation for its shareholders is in large part due to his strong leadership, unique and creative vision, and exceptional management abilities," Meta stated in its earnings report. "The creation of the Class C common stock will continue the founder-led model that has driven the company's success since its inception."
META Meta Platforms$625.33-$5.23 (-0.83%)
NASDAQ · As of 9:32 AM ET 10/27/26
The creation of the shares also comes as California voters will soon head to the polls to vote on Proposition 40, a proposal that would levy a one-time 5% wealth tax on California residents with a net worth of more than $1 billion.
The securities filing also noted that Zuckerberg has only taken a $1 annual salary since 2013. If Zuckerberg had to sell some of his class B stock to cover the tax liability, it could be large enough to lower his voting control to roughly 53%, the filing stated.
The filing also states Zuckerberg will be able to sell 20% of the Class C shares he receives "without restriction."
The split could be foreshadowing another large equity raise In its earnings report, Meta also said the new Class C common stock could help fund its growth, particularly as it continues to make huge AI capital expenditures (capex), primarily to build data centers.
Once the Class C shares are created, Meta could issue new shares to raise funding without diluting Zuckerberg's voting power.
Meta already plans to spend $135 billion to $145 billion on AI capex this year and just reported negative free cash flow in the third quarter. Furthermore, the company continues to believe it will need to raise hundreds of billions of dollars more to continue supporting its AI build-out.
JPMorgan Chase analyst Doug Anmuth recently wrote in a research note that Meta should raise capital "sooner" than later to remove an "overhang" on the stock right now, according to Barron's.
Ultimately, everything Meta is doing shows how a stock split can be used to advance a corporate agenda.
A Fool since 2019, and a graduate of Cal State LA with a B.S. in Finance and M.A. in Economics. Parkev is an adjunct professor of Finance and enjoys reading about financial and economic history. You'll often find him writing about stocks in the consumer goods and technology sectors.
Stocks Mentioned
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
SummaryMeta Platforms, Inc. remains a Strong Buy as core business strength and robust ad growth outweigh near-term spending and legal charges.META's 2026 operating income is set to exceed 2025, excluding a $9.89B legal charge, with underlying margins near 35%.Muse, Meta's AI assistant, shows early monetization potential, but any material fee contribution likely begins in 2027.Despite negative free cash flow and rising debt, META stock trades at ~21x underlying earnings, offering an attractive entry after the post-earnings selloff. Kira-Yan/iStock Editorial via Getty Images
Meta Platforms, Inc. (META) gave investors nearly everything they could have asked for in its third-quarter results, reported Oct. 21.
For starters, revenue beat the top of the company’s own forecast, and the 2026 profit promise
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Meta also plans to issue as much as $60 billion of nonvoting class C common shares in an “at-the-market” equity offering when those shares are issued in a one-for-one distribution to Meta's class A and class B holders scheduled for January.
Davidson Kahn Capital Management LLC increased its position in shares of Tesla, Inc. (NASDAQ: TSLA) by 31.5% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 6,192 shares of the electric vehicle producer's stock after buying an additional 1,483 shares
Wall Street bears are abandoning Tesla at a historic pace, and the reason has almost nothing to do with how many cars the company sells. The catalyst dividing analysts sits at the center of a potential deal that has no…
Only 5 of the 60 analysts in a widely followed survey now rate Tesla (NASDAQ:TSLA | TSLA Price Prediction) a sell. That is the lowest share of sell ratings in more than 11 years; in January, 15 of 71 analysts rated it a sell.
On October 26, 2026, the shares closed at $391.62, up 5.21%, after reaching $397.27 during the session. That close beat the $386.47 finish on October 21 and was the highest since at least August 17.
Tesla is still down 12.92% in 2026, while the S&P 500 is up 12%. The bears are leaving a stock that has lagged the market, and the reason most cite has little to do with selling more cars.
Sell ratings now make up 8.3% of coverage, down from 21% in January. That leaves very few skeptics who could still turn bullish.
Merger Speculation Is Emptying Tesla’s Sell Side BNP Paribas analyst James Picariello moved from sell to neutral and raised his target to $420 from $266. He said the change “exclusively” reflects better odds that SpaceX (NASDAQ:SPCX) buys Tesla. CLSA also moved to hold.
Some of the fall came without anyone changing their mind. Longtime skeptic Colin Langan left Wells Fargo, and the bank suspended coverage of Tesla and 17 other auto companies.
Barclays analyst Dan Levy upgraded the stock to Overweight and raised his target to $450 from $370. His old rating was Equal Weight, which is a hold, so this upgrade did not remove a sell. He wrote that “the anticipated merger is now a key part of the Tesla bull case.”
A Merger With No Signature and a Conflicted Controller Nothing has been agreed. On Tesla’s October 21 earnings call, CEO Elon Musk said he had already covered the topic, “tap-dancing through a minefield,” and the company would not take questions on it. On SpaceX’s call, he said both boards had formed special committees to study a merger, but that it would be “an exaggeration” to say a deal will definitely happen.
Barclays expects an all-stock deal, meaning Tesla holders would be paid in SpaceX shares. It would need the support of more than half of each company’s total voting power, which Barclays called a “high hurdle.” Musk holds 82% of SpaceX’s voting power and could control about 53% of the combined company at Barclays’ target, so he sits on both sides of the exchange ratio (how many SpaceX shares each Tesla share would get).
Dan Ives of Yorkville Ives & Co. puts the chance of a merger at 90% and says the price “has to be between $500 and $550” a share. Prediction markets see only a 13% chance of an official announcement by December 31 and 51.5% by June 30, 2027.
What a Near-Empty Sell Side Leaves for Bulls When analysts upgrade a stock from sell, it brings in new buyers, and few sell ratings remain to upgrade. The consensus target of $407.22 is only 3.98% above the October 26 close, and in one 44-analyst count, hold is still the most common rating with 21.
The energy business does give the bulls something solid. Tesla deployed 13.7 GWh of storage in the third quarter at a 33.1% gross margin, and Barclays expects shipments to grow more than 50%. But GAAP net income fell 43% to $787 million, and free cash flow dropped to $1.53 billion from $3.99 billion a year earlier.
Should You Buy or Sell TSLA Stock The risks outweigh the merger case. At 408 times trailing earnings and a $1.548 trillion market value, Tesla is trading as a stand-in for a deal that has no terms, no signed agreement, and a controlling shareholder who sets the price.
If the special committees stall, the stock loses the main reason former bears gave for leaving. The energy business alone cannot support that valuation.
A close back below the October 23 level of $372.22 would show that the upgrade rally has already faded.
Contact [email protected] for any questions or corrections.
ATLANTA--(BUSINESS WIRE)--The Coca-Cola Company today reported third quarter 2026 results. “Our results this quarter demonstrate our system's sustained momentum, giving us confidence in our updated full year guidance,” said Henrique Braun, CEO of The Coca-Cola Company. “By staying close to consumers and executing with agility across our global system, we are delivering quality growth while continuing to invest in the capabilities, brands and people that will fuel our future.” Highlights Quarter.
Coca-Cola (KO.N) on Tuesday raised its annual profit forecast, betting on soft drink demand in markets such as India and Brazil, while higher sales of pricier beverages such as fairlife milk offset rising input costs in North America.
The company's strong volume growth this year across its trademark sodas and other beverage brands contrasts with rival PepsiCo's struggles with weak snack demand in the United States.
Coca-Cola has sought to win over increasingly selective consumers with smaller, cheaper packs in the United States alongside pricier offerings such as Coca-Cola Cherry Float and new Topo Chico and fairlife varieties.
Growth in India, China, Mexico and Brazil helped global unit case volumes rise about 5% in the third quarter, the company said. North American volumes were flat, despite growth in its trademark sodas.
"The gap between Coke and peers is widening. As the market debates price increases, those delivering volume growth should outperform," Jefferies analyst Kaumil Gajrawala said.
Coca-Cola now expects comparable currency-neutral earnings per share to grow at least 9% in 2026, up from its previous forecast of 7% to 8%.
It also now targets annual organic revenue growth of at least 5%, compared with roughly 5% expected earlier.
Coca-Cola's shares were largely unchanged in premarket trading. The stock has jumped about 33% in 2026 and is on track for a third straight year of gains despite broader weakness in consumer spending and market volatility stemming from the Iran war.
Some investors may have been looking for a larger raise in annual targets, but maintaining prudence was understandable given the macro environment, RBC Capital Markets analyst Nik Modi said.
COSTS RISE BUT MARGINS HOLD STEADY
Coca-Cola, like other consumer goods companies, faces higher packaging costs as the US war in Iran drives up commodity prices. The company said in July that aluminum and PET costs had risen more than expected this year.
A 7.4% increase in third-quarter revenue, however, helped support its operating margin, which rose to 33.4%.
Revenue for the quarter ended October 2 reached $13.38 billion, beating analysts' estimate of $12.92 billion, according to LSEG data. Adjusted earnings of 91 cents per share also beat estimates of 88 cents.
Coca-Cola raised its full-year outlook for the third consecutive quarter on Tuesday, betting on resilient demand for zero-sugar sodas and premium beverages. The beverage giant now expects comparable earnings per share to grow at least 11% in 2026, up from its previous forecast of 9% to 10%.
Coca-Cola (KO - Free Report) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.60%. A quarter ago, it was expected that this world's largest beverage maker would post earnings of $0.92 per share when it actually produced earnings of $0.97, delivering a surprise of +5.43%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Coca-Cola, which belongs to the Zacks Beverages - Soft drinks industry, posted revenues of $13.35 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 3.31%. This compares to year-ago revenues of $12.41 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Coca-Cola shares have added about 32.6% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Coca-Cola?While Coca-Cola has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Coca-Cola was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.61 on $11.15 billion in revenues for the coming quarter and $3.30 on $49.89 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Soft drinks is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Westrock Coffee Company (WEST - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on November 5.
This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Westrock Coffee Company's revenues are expected to be $306.5 million, down 13.6% from the year-ago quarter.
Over 300 independently owned Key Food locations across the Northeast and Florida join the Uber Eats marketplace, bringing fresh groceries and everyday essentials to customers on-demand
SAN FRANCISCO--(BUSINESS WIRE)--Uber Technologies, Inc. (NYSE: UBER) and Key Food Stores Co-Operative, Inc., a prominent chain of family-owned and -operated supermarkets, today announced a partnership that brings grocery delivery from more than 300 Key Food member stores across the Northeast and Florida to Uber Eats, giving customers more ways to shop their local supermarkets. The partnership builds on Uber Eats' continued investment in grocery and retail, as the company grows its footprint with national and regional supermarket brands across the country.
Customers can shop from participating stores in Key Food’s Family of Supermarkets, including Key Food, Food Universe, SuperFresh, The Food Emporium, Food Dynasty, and more, directly through the Uber Eats app. Customers can access a wide selection of fresh produce, meat, seafood, pantry staples, household essentials and more, with on-demand and scheduled delivery options.
“Key Food’s stores understand the neighborhoods they serve, and bringing these retailers to Uber Eats gives customers greater access to the local grocery selection they know and rely on,” said Prashant Garg, Head of North America, Uber Eats. “Whether they’re scheduling a grocery order on the way home from work or need an ingredient they forgot at the store, this gives shoppers more choice in where they shop for groceries, and more flexibility in how they get them.”
Founded in Brooklyn in 1937, Key Food is a Co-Operative of Supermarkets serving communities throughout the Northeast and Florida. Each member independently owns and operates its stores, enabling retailers to tailor their assortments and service to the needs of their local customers.
“Our members are the foundation of the Co-Op, with deep roots in their communities and lasting relationships with the customers they serve,” said Dean Janeway, CEO of Key Food Stores Co-Operative, Inc. “Our partnership with Uber Eats is a strategic step in evolving how we serve our customers, expanding our digital footprint, supporting our members’ growth, and making it more convenient for shoppers to access their neighborhood Key Food stores.”
How it Works
Shopping your local participating store in the Key Food Family of Supermarkets through Uber Eats is simple:
Open the Uber Eats app and tap “Grocery.”Select an available participating store and browse a wide assortment of groceries and household items.Add items to your cart, choose your delivery time and place your order.Track your delivery in real time.The partnership is open to eligible Key Food Co-Op stores interested in joining the Uber Eats marketplace. As the rollout continues, member stores can opt in to bring on-demand delivery to their customers through Uber Eats.
About Uber
Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 79 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.
About Key Food Stores Co-Operative, Inc.
Founded in Brooklyn in 1937, Key Food Stores Co-Operative, Inc. includes over 480 family-owned and operated supermarkets with $5.7 billion in annual sales. In addition to Key Food, these stores operate under various other banners including; Food Universe, The Food Emporium, and SuperFresh in all five boroughs of NYC, Long Island New York, upstate New York, New Jersey, Connecticut, Massachusetts, Pennsylvania, Rhode Island, Maryland and Florida. Please visit www.keyfood.com for more information.
Alphabet Inc. (NASDAQ:GOOGL) will release earnings for its third quarter after the closing bell on Wednesday, Oct. 28.
Analysts expect the Mountain View, California-based company to report quarterly earnings of $3.00 per share, compared to $2.87 per share in the year-ago period. The consensus estimate for GOOGL’s quarterly revenue is $127.83 billion. It reported $102.35 billion last year, according to Benzinga Pro.
Alphabet CEO Sundar Pichai recently said artificial intelligence is still far from independently building more powerful versions of itself, even as Google increasingly relies on AI to develop its next models.
Alphabet shares fell 1.1% to close at $316.80 on Monday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Citizens analyst Andrew Boone maintained a Market Outperform rating and cut the price target from $515 to $450 on Oct. 22, 2026. This analyst has an accuracy rate of 72%. BMO Capital analyst Brian Pitz maintained an Outperform rating and raised the price target from $465 to $480 on Oct. 20, 2026. This analyst has an accuracy rate of 64%. Keybanc analyst Justin Patterson maintained an Overweight rating and lowered the price target from $435 to $410 on Oct. 19, 2026. This analyst has an accuracy rate of 66%. JP Morgan analyst Doug Anmuth maintained an Overweight rating and raised the price target from $420 to $425 on Oct. 15, 2026. This analyst has an accuracy rate of 83%. UBS analyst Stephen Ju maintained a Neutral rating and increased the price target from $379 to $380 on Oct. 14, 2026. This analyst has an accuracy rate of 74%. Considering buying GOOGL stock? Here’s what analysts think:
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Alphabet just posted its biggest Cloud growth quarter yet while the stock sits more than 20% below its highs, but the bear case risks are real enough to give even bulls pause. Here is what our model found when it…
Alphabet (NASDAQ:GOOG | GOOG Price Prediction) closed at $320.76. The 24/7 Wall St. price target stands at $423.95, meaning 32.17% upside over the next 12 months. The stock gets a buy rating from our model, with fairly high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $320.76 Price Target from 24/7 Wall St. $423.95 Upside/Downside 32.17% Recommendation BUY Confidence Level 70% The market is focused on the cost of Alphabet’s AI buildout. More weight goes to what that spending is already producing: a Cloud business that grew 82% last quarter and a backlog of $514 billion.
A Sharp October Pullback Follows a Record Quarter GOOG fell 7% over the past week and 7.67% over the past month, including a 3.08% drop on October 22. Shares are still up 2.42% year to date and 27.35% over 12 months. The stock trades roughly 21% below its 52-week high of $403.96 and about 26% above its low of $255.43.
In Q2, revenue reached $119.80 billion (up 24.23%), beating the $116.91 billion estimate. EPS came in at $9.11 against a $3.04 estimate.
A $99.03 billion unrealized gain on equity securities accounts for much of that EPS beat. Investors are looking for fresh reasons to own the stock: Forbes this week asked what makes Google stock a buy.
Why Bulls See $442 and Beyond Cloud is the engine. Growth went from 34% to 48% to 63% to 82% across four quarters, and Cloud operating margin rose to 35.6% from 20.7%. AI Mode has passed 1 billion monthly active users and the Gemini app has 950 million. Management expects most TPU system sales revenue to arrive in 2027.
Sundar Pichai called it “extraordinary opportunities with extraordinary returns.” Wall Street agrees, with 13 Strong Buy, 44 Buy, and 5 Hold ratings and zero Sells. The bull case stands at $442.71.
What Could Derail the AI Payoff Q2 capex hit $44.92 billion and drove free cash flow to -$5.86 billion. Long-term debt rose from $46.5 billion to $98.2 billion, buybacks are on hold, and a $49.6 billion equity raise dilutes existing holders. EU regulatory risk also remains.
On the other side, trailing 12-month free cash flow was still $53.3 billion and interest coverage is 175.5x. The bear case of $365.73 is still above today’s price.
Alphabet Trades at a Discount to Microsoft and Meta Company P/E P/FCF Operating Margin Alphabet 13 55 32.06% Microsoft (NASDAQ:MSFT) 29 58 46.78% Meta Platforms (NASDAQ:META) 24 31 41.44% Microsoft competes directly with Alphabet in cloud. Azure grew 43%, well behind Google Cloud’s pace, yet Microsoft trades at more than twice Alphabet’s P/E.
Meta Platforms competes for digital ad budgets and is spending just as heavily on AI. Meta’s Q3 operating margin fell to 20% from 40%. Our target meaning about 16x trailing earnings, which still sits below both peers. That makes it look conservative, even after allowing for Alphabet’s one-time equity gains.
What Could Tip Alphabet’s Outlook From Here The 24/7 Wall St. price target is $423.95, rated buy with 70% confidence. Cloud’s accelerating, increasingly profitable growth is what drives our model’s call.
A stronger bull case appears if the backlog keeps turning into revenue at expanding margins. Downside risk grows if free cash flow remains negative while borrowing keeps rising. For now, our model’s upside scenario outweighs its downside scenario.
Alphabet Price Prediction 2026-2030 Year Price Target from 24/7 Wall St. 2026 $423.95 2027 $482.32 2028 $548.72 2029 $624.26 2030 $710.20 Alphabet needs to keep executing its full-stack AI strategy for these projections to hold. Gemini 4’s competitiveness or a slowdown in Cloud demand could move results sharply in either direction.
Contact [email protected] for any questions or corrections.
Hanson and Doremus Investment Management increased its holdings in shares of Amazon.com, Inc. (NASDAQ: AMZN) by 13.5% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 28,944 shares of the e-commerce giant's stock after purchasing an additional 3,438
Cyndeo Wealth Partners LLC trimmed its position in Amazon.com, Inc. (NASDAQ: AMZN) by 14.5% during the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 170,562 shares of the e-commerce giant's stock after selling 28,961 shares during the quarter. Amazon.com comprises about 1.9% of Cyndeo
Over the past few years, investors looking for a piece of the artificial intelligence (AI) pie without the roller-coaster ride have been seeking out one stock in particular: Amazon (AMZN +0.38%). The pitch was simple: Amazon owns the world's No. 1 cloud service provider -- Amazon Web Services (AWS) -- but it also is an e-commerce leader, selling everything from groceries to garden tools. This means this market giant doesn't depend on a single technology trend and instead generates reliable growth, thanks to e-commerce, quarter after quarter.
However, that pitch may need an update. E-commerce these days actually isn't Amazon's star business. Instead, it's AWS, a major player in the AI story and Amazon's biggest profit driver. Does this mean Amazon is no longer a no-brainer buy for cautious investors? Let's find out.
Image source: Getty Images.
Amazon's two enginesFirst, though, a quick update on the Amazon story so far. Amazon built its fortune on e-commerce, and that business remains central to the company's successes. Shoppers turn to Amazon for essentials and general merchandise, Prime members keep coming back for fast delivery, and millions of third-party sellers populate the Amazon marketplace. Along the way, Amazon added a high-margin advertising business that taps into all of the shopper traffic.
Then there's AWS, the unit that has become a growth machine over the years -- and the AI boom added significantly to this momentum. So Amazon offers investors a track record of revenue gains thanks to e-commerce, and a new chapter of growth at AWS is unfolding as we speak.
AMZN Amazon$250.03+$0.94 (+0.38%)
NASDAQ · As of 9:32 AM ET 10/27/26
AWS' sales jumped 37% in the second quarter for the fastest growth rate in more than four years, and the segment just reached a $169 billion annualized revenue run rate. Importantly, the company says demand is soaring for both non-AI and AI services.
Now, here's where the story gets interesting. North America generated about $9 billion in operating income on $116 billion in sales. International earned $1.7 billion on more than $42 billion in sales. AWS, meanwhile, brought in $42 billion in sales and $16 billion in operating income. That means AWS made up just 21% of Amazon's sales but 60% of its operating income.
Of course, the e-commerce business remains an important part of the growth picture, with advertising revenue rising 26% to more than $19 billion in the quarter -- it's just not the profit engine.
What this means for cautious investorsAmazon's "safe" label deserves a closer look. Amazon's profits increasingly depend on continued demand for AI infrastructure, and the company is spending heavily to meet it. Amazon plans $220 billion in capital expenditures this year, and free cash flow for the trailing 12 months turned negative, at an outflow of $7.6 billion, compared with an inflow of more than $18 billion a year earlier. And the company says it may continue to face free cash flow headwinds until new data centers are up and running for a while.
Still, there's reason for optimism. Amazon chief Andy Jassy says that even with capex at current levels, Amazon won't have enough capacity to meet demand this year, and he expects the same next year. It will be important for investors to consider any updates to the capex and demand situation in the third-quarter earnings report, set for Oct. 29 after the market closes.
So, is Amazon still a good buy for cautious investors? Yes — as long as investors recognize AWS' key role in the earnings picture. An e-commerce business generating nearly $11 billion in quarterly operating income gives Amazon diversification few AI players can match.
Amazon also scores a win when it comes to valuation. It's trading at reasonable levels today, at 29x forward earnings estimates, down from more than 34x just a few months ago.
If you're a long-term investor who doesn't mind potential volatility around AI spending, Amazon looks like a fantastic buy. If you're truly risk-averse, but still like the Amazon story, consider starting with a smaller position and adding to it over time.
Amazon's stock has barely budged this year, yet the business underneath it is accelerating in ways that make most rivals look structurally overpriced. One looming risk, though, could unravel the entire thesis if a single market condition shifts.
I added to my Amazon (NASDAQ:AMZN | AMZN Price Prediction) position again. Every earnings report gives me another reason to keep doing it. The stock sits at $249.09, up only 7.92% year to date, while the business behind it speeds up. That gap is why I keep adding.
Three Moats Protecting Amazon’s Margins
My thesis is simple. Amazon controls its own costs in AI. The company designs its own chips, offers every major AI model through one platform, and uses robots to move physical goods at a scale I have not seen any retailer match.
Start with custom silicon. Amazon’s chips business runs at an annual revenue rate of over $25 billion, growing at triple-digit rates. Graviton is used by 98% of Amazon’s top 1,000 EC2 customers, and Anthropic and OpenAI both signed multi-year Trainium commitments measured in gigawatts. Cheaper in-house chips helped AWS post a 39% operating margin on $42.2 billion in revenue, which grew 36.7%. That was its fastest growth in 18 quarters.
Second, Bedrock works with any model. It added 10+ foundation models, including OpenAI GPT and Anthropic Claude, and customers spent more on it in Q2 than in all prior quarters combined. CEO Andy Jassy put it simply: “There is not going to be one model to rule the world.” Amazon gets paid whichever model customers pick. An AWS backlog of $496 billion tells me enterprises agree.
Third, automated logistics. Amazon delivered over 40% more items same day or overnight in the first half of the year, plans to more than double its robotic-arm fleet in 2026 and launched a next-generation Proteus robot. Operating income rose 43.24% to $27.46 billion while revenue grew 19.62%. Profits growing faster than sales is exactly what I want to own.
Why My Money Skips Walmart and Microsoft
Walmart (NASDAQ:WMT) trades at a P/E of 44, compared with Amazon’s 35. Walmart’s operating margin is 4.18% and Amazon’s is 11.16%, and Walmart’s revenue grew 5.94% last quarter. I see no reason to pay more for slower growth and lower margins with no cloud business attached.
The stronger rival is Microsoft (NASDAQ:MSFT), with Azure growing 43%. Still, Microsoft trades at 8.94 times book value, while Amazon trades at 6.54. Its More Personal Computing segment also contracted 4%. Every Amazon business line grew, from advertising at 26% to physical stores at 4%.
Free Cash Flow Is the Risk I Watch Most
Amazon now expects about $220 billion in 2026 capital spending, up from about $200 billion, because memory costs rose. Free cash flow for the past 12 months turned negative, at -$7.6 billion. Q2 GAAP EPS of $5.75 also included a $53.4 billion one-time gain on Amazon’s Anthropic stake, recorded before taxes. If AI demand cools, that spending leaves Amazon with idle capacity.
I still hold my thesis because Amazon builds against demand customers have already signed for. Jassy said most capacity coming online in 2027 is already reserved, most AI capacity sits under contracts of at least five years, and servers pay for themselves in a little under three years. All that spending has to be powered, cooled and connected by somebody, and we rounded up seven suppliers riding the same expansion in a free AI infrastructure report. Debt-to-equity of 0.37 leaves room to fund the expansion.
What Keeps My Buy Button Active
Q3 guidance calls for operating income of $22.5 billion to $26.5 billion, up from $17.4 billion a year earlier. Jassy now believes AWS could become “a trillion-dollar annual revenue business for us in time.” Amazon builds the chips, hosts the models and delivers the boxes, and I plan to keep buying more of all three.
Contact [email protected] for any questions or corrections.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Renowned crypto trader Bonk Guy posted that while the broader crypto community widely perceives on-chain trading conditions to have hit historic lows, roughly 6 new tokens have reached a market cap of $100 million to over $300 million in the past four months, and dozens of new tokens have seen their fully diluted valuations (FDV) exceed $10 million. Notably, tokens including PONS, ANSEM, CASHCAT, AI, and STONK have all hit an FDV of at least $300 million. Despite a deterioration in market structure, on-chain trading still sees tokens posting sharp rallies from time to time. Compared to the downturns before the launch of Robinhood Chain, and the period after last year’s TRUMP token launch and before BonkFun’s initial rise, the current market is nowhere near its worst levels in history. While the current market environment is not as strong as the broad-based rally seen a few months ago, this does not mean on-chain trading opportunities have vanished. With market sentiment dominated by pessimism, he predicts the market may rebound soon, with a recovery pace faster than most expect. He advises focusing on tokens that stood out in the previous cycle and carry high conviction, and considering gradual accumulation during pullbacks. He added that historical experience shows some tokens could not only return to their previous highs in the next rally, but also surge further, and the biggest market opportunities often emerge before mainstream sentiment shifts.
Ballast Inc. boosted its holdings in Microsoft Corporation (NASDAQ: MSFT) by 7.0% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 18,334 shares of the software giant's stock after purchasing an additional 1,193 shares during the period.
Microsoft just offered buyouts to roughly a quarter of its entire workforce, and the announcement never once mentions AI or cost cutting. The real reason hiding in the spending figures tells a very different story.
On Monday, October 26, 2026, Microsoft (NASDAQ:MSFT | MSFT Price Prediction) offered voluntary buyouts to about 60,000 employees. That is roughly 27% of the 223,000 people it employed full-time as of June 30.
The stock rose 1.54% to $532.60 and was little changed after hours at $532.45, leaving the company worth about $3.95 trillion.
The offer comes as AI spending rises fast. Microsoft spent $115.95 billion on capital expenditures in fiscal 2026, up 79.62%, while free cash flow fell 6.46%.
Microsoft’s announcement never mentions AI or cost cutting. The link to AI comes from the spending figures and the teams invited to leave, and that evidence is strong enough to take seriously.
What Microsoft Offered Employees The company’s post, “Introducing a Voluntary Exit Offer,” was signed by Amy Coleman as executive vice president and chief people officer. It describes a time-limited offer for employees at level 70 and below on participating teams in the U.S., Canada, India, and the U.K.
Participation “varies based on each business’s priorities, customer commitments and workforce needs,” and the company added, “The Voluntary Exit Offer is new for us… We’ll learn from it.”
Uptake, total cost and exact severance terms were not disclosed, but terms are reportedly similar to standard severance, and eligible staff reportedly have until early December to accept, with departures on December 31.
Who Is Protected and Who Is Exposed Participating parts reportedly include Xbox, Windows, Copilot and Finance. Data center, sales, and marketing staff are largely left out, which means the teams that build and sell AI capacity are protected.
This is also the third workforce move of the year. An April retirement program covered 8,750 U.S. workers and drew acceptance above 30%, and in July Microsoft cut 4,800 jobs, or 2.1% of staff, mostly in Xbox.
Going from a targeted retirement offer to layoffs to a broad exit offer looks like a structural reset. A one-time trim would not follow that sequence.
Spending Math Behind the Timing Industry data center investment is likely to top $700 billion this year. In July, CFO Amy Hood put Microsoft’s calendar-2026 capex at about $175 billion. The earlier figure was $190 billion, and it came down only because longer asset lives moved some leases out of capex.
Capex hit about $41 billion in the June quarter, and the forecast for the September quarter was more than $50 billion. Depreciation, the annual expense charged as that equipment wears out, weighs on margins for years. Payroll is the largest cost management can change quickly.
Wells Fargo (NYSE:WFC) rates the stock Overweight with a $725 target. It estimated that if one-third of eligible workers accept, operating margin would gain about 2 percentage points a year. The one-third figure is an assumption, though April’s uptake makes it plausible.
What Investors Are Pricing In Before Earnings Fiscal first-quarter results are expected after the close on Wednesday, October 28. Analysts expect EPS of $4.7199 on revenue of about $90.75 billion. The key questions are clear. Investors want to know whether management can quantify the offer’s charges or savings, whether capex guidance rises again, and whether cloud growth can stay ahead of depreciation.
Why Microsoft’s Margin Case Hinges on This Exit Offer Azure grew 43% last quarter, commercial backlog reached $678 billion, and demand still tops capacity. A lower payroll in slower units makes that expansion cheaper to carry.
The main risks are clear. The best people may be the ones who leave, morale in Xbox and Windows could suffer, and the savings are small next to quarterly capex.
The stock trades below its $553.72 52-week high. The margin case was wrong. That would be the outcome if the October 28 report increases capex without quantifying the offer’s savings, and shares have not recaptured that high by December 31.
Contact [email protected] for any questions or corrections.
Microsoft is offering voluntary exits to about 60,000 employees as it tries to preserve financial flexibility while AI infrastructure spending climbs. Summary
Around 60,000 employees are eligible across the U.S., Canada, India and the U.K.
Microsoft Corp (MSFT, Financials) is giving voluntary buyouts to a wide swath of employees as it seeks to combine increasing expenditure on artificial intelligence with tighter cost controls.
Some 60,000 people, or about 27% of Microsoft's global workforce, are eligible for the program.
Employees in the U.S., Canada, India and the U.K. are eligible to participate, with decisions expected in early December and departures planned for Dec. 31.
The move comes as Microsoft has been investing more on data centers and AI infrastructure.
The corporation has indicated it expects September-quarter capital expenditures to be greater than $50 billion, compared with $34.9 billion in capital investment and financing leasing a year earlier.
Free cash flow is being squeezed at the same time.
Microsoft produced $19.64 billion of free cash flow in the second quarter, down 23 percent from a year earlier.
To investors, the buyout program suggests management is aiming to fund AI expansion without letting operational costs get out of control.
Up next on the catalyst watch is Microsoft's third-quarter earnings release, where investors will be looking at AI expenditure, margins and free cash flow.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Microsoft is giving an enormous swath of its workforce an easy out—if they want it.
On Monday Amy Coleman, Microsoft’s chief people officer, announced that the company would extend a voluntary exit offer to eligible employees, allowing them to transition out of the company with financial support. Coleman framed the buyout offer as a way for Microsoft workers “considering a future outside the company” to make that move now, helpfully reducing the tech giant’s costly head count in the process.
At Microsoft, 60,000 workers are expected to receive the offer—more than 25% of the company’s total workforce. “The Voluntary Exit Offer is new for us,” Coleman wrote in the memo to staff, also shared on the company’s blog. “We’ll learn from it.”
Employees based in the U.S., U.K., Canada, and India on participating teams received details about the buyout on Monday morning via email.
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“Participation varies based on each business’s priorities, customer commitments and workforce needs,” Coleman wrote.
Employees who work in Microsoft units including AI experiences, Copilot, human resources, finance, Windows and Devices, and Xbox will be eligible for the buyout, according to a report from Reuters, while workers in security, marketing, and commercial business won’t. Fast Company has reached out to Microsoft for additional details on the buyout offer.
Microsoft is eager to reduce the size of its sprawling global workforce, which totaled 223,000 full-time employees this summer. Like its peers, the tech giant has been on an epic AI spending spree, splashing out big on artificial intelligence chips and data centers. In 2026 alone, Microsoft projects $175 billion in capital expenditures, a mind-boggling sum driven by its huge bets on AI.
Advanced Micro Devices Inc. (AMD, Financials), the semiconductor company, was among the stocks trimmed by Cathie Wood's ARK Invest as the firm rotated capital toward electric air taxi companies.
ARK sold 24,796 AMD shares worth about $13.2 million and 21,894 Taiwan Semiconductor shares worth about $9.3 million.
The AMD sale comes ahead of third-quarter earnings on Nov. 3. Wall Street expects earnings of $1.94 per share on revenue of $13.08 billion.
Despite the sale, analysts remain bullish. Susquehanna recently raised its AMD target to $620, while Bernstein kept an Outperform rating with a $650 target.
ARK used part of the proceeds to add to Archer Aviation and Joby Aviation.
The firm bought about $4.8 million of Archer shares and roughly $2 million of Joby.
Both companies are still working toward commercial electric air taxi operations, making them considerably earlier-stage investments than AMD or TSMC.
For investors, the trades show ARK leaning away from semiconductor winners after large gains and adding exposure to a more speculative transportation theme.
The next catalyst is AMD's Nov. 3 earnings report and continued progress toward commercial service at Archer and Joby.
AMD and Meta collaborate across CPUs, GPUs, networking, systems and software to power Meta services and AI infrastructureAMD Helios rackscale solutions will power Meta’s leading frontier models and servicesAMD technology is the compute engine of choice for Muse and AMD technologies provide Day-0 support for leading Meta models SANTA CLARA, Calif., Oct. 27, 2026 (GLOBE NEWSWIRE) -- AMD (NASDAQ: AMD) today highlighted its deep strategic partnership with Meta, announcing AMD Helios™ rackscale solutions are running at Meta, AMD EPYC™ processors power Meta’s Muse AI agent, and AMD technologies provide Day-0 support for Meta models including Muse Spark Open and Muse Glimmer.
This builds on years of co-design and collaboration between the two companies across AMD EPYC™ processors, AMD Instinct™ GPUs, AMD Pensando™ networking and AMD ROCm™ AI infrastructure.
“Meta is a strategic partner for AMD, and we have built this partnership through years of deep technical collaboration – from EPYC processors powering Meta’s infrastructure to Instinct GPUs and open software supporting its AI workloads,” said Lisa Su, Chair and CEO, AMD. “With Helios now running at Meta, we are taking that partnership to a new scale in the superintelligence era. Together, we are building and deploying infrastructure at gigawatt scale and shaping future generations of silicon, software and systems to enable Meta’s most ambitious superintelligence models and services.”
“AMD has been a key partner in building out the compute that's running our frontier models,” said Mark Zuckerberg, founder and CEO, Meta, “We're making big investments in the computing power that will enable us to bring personal superintelligence to everyone, and AMD plays an important role in that.”
AMD Powering Meta Infrastructure, Today
AMD technology powers Meta’s infrastructure across compute, networking, systems and software.
Initial AMD Helios rackscale solutions are installed and being tested by Meta on the path to a broader deployment in the near future.AMD EPYC processors support the dedicated computing environments behind Meta’s Muse personal AI agent. Meta has deployed millions of EPYC processors across multiple generations and is a lead customer for 6th Gen EPYC™ CPUs. The companies are also collaborating on future generations, including “Verano.”AMD Instinct GPUs are currently used in production in Meta’s infrastructure for training, ranking and recommendation engines. Meta was also an early definition customer for the AMD Instinct™ MI450 architecture, and it will deploy a custom AMD Instinct GPU that is optimized for its workloads. The collaboration is also informing future AMD platforms, including AMD Instinct™ MI500 series GPUs and next-generation rack-scale systems.AMD and Meta have worked together to advance ROCm through PyTorch to ensure that developers can leverage AMD GPUs right out of the box. As well, AMD delivered Day-0 support for Meta's Muse Spark Open models on AMD Instinct GPUs and for Muse Glimmer on AMD Ryzen™ AI PCs and AMD Radeon™ GPUs.AMD and Meta have expanded their software collaboration to large-scale AI training, optimizing recommendation models on AMD Instinct MI350X GPUs and contributing improvements to PyTorch, Triton and ROCm for other developers to use. As Meta grows its AI capabilities, the companies are working together across silicon, software and systems to address the demands of operating AI infrastructure for billions of people. The companies have aligned product roadmaps and engineering decisions around current and future Meta workloads, evolving years of collaboration into building and deploying integrated AI systems at gigawatt scale.
In addition, AMD will invest $1 billion in Meta’s equity offering.
Supporting Resources
Learn more about AMD Instinct GPUsLearn more about AMD EPYC CPUsLearn more about AMD HeliosFollow AMD on LinkedInFollow AMD on X About AMD
AMD (NASDAQ: AMD) drives innovation in high-performance and AI computing to solve the world’s most important challenges. Today, AMD technology powers billions of experiences across cloud and AI infrastructure, embedded systems, AI PCs and gaming. With a broad portfolio of AI-optimized CPUs, GPUs, networking and software, AMD delivers full-stack AI solutions that provide the performance and scalability needed for a new era of intelligent computing. Learn more at www.amd.com.
Cautionary Statement
This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as the collaboration, expectations and anticipated benefits of the strategic partnership with Meta including the expected broader deployment of AMD Helios rack-scale systems in the near future; the companies collaborating on future generations of AMD EPYC™ processors including “Verano”; the collaboration informing future AMD platforms including AMD Instinct MI500™ series GPUs and next-generation rack-scale systems; and the companies aligning product roadmaps and engineering decisions around current and future Meta workloads, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and are generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: impact of government actions and regulations such as export regulations, national-security-based regulations, import tariffs, trade protection measures, and licensing requirements; competitive markets in which AMD’s products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD’s ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, components (such as memory supply), substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; failure to maintain an efficient supply chain as customer demand changes; AMD's ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of climate change on AMD’s business; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; AMD’s ability to satisfy financial obligations under guarantees, leases and other commercial commitments; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses; impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain key employees; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.
AMD, the AMD Arrow logo, AMD Instinct, AMD Pensando, AMD ROCm, EPYC and combinations thereof are trademarks of Advanced Micro Devices, Inc. Other names are for informational purposes only and may be trademarks of their respective owners.
737-7 achieved amended type certification (ATC) from the FAA; 737-10 achieved ATC in OctoberSelected by the U.S. Navy to design, build and deliver the F/A-XX next generation fighter aircraftOperating cash flow of $1.5 billion and free cash flow (non-GAAP)* of $0.5 billionTotal company backlog grew to a record $745 billion, including over 6,300 commercial airplanesTable 1. Summary Financial Results
Third Quarter
Nine Months
(Dollars in Millions, except per share data)
2026
2025
Change
2026
2025
Change
Revenues
$24,188
$23,270
4 %
$70,965
$65,515
8 %
GAAP
Earnings/(loss) from operations
$354
($4,781)
NM
$958
($4,496)
NM
Operating margins
1.5 %
(20.5) %
22.0 Pts
1.3 %
(6.9) %
8.2 Pts
Net loss
($116)
($5,339)
NM
($551)
($5,982)
NM
Diluted loss per share
($0.26)
($7.14)
NM
($1.04)
($8.25)
NM
Operating cash flow
$1,496
$1,123
33 %
$2,681
($266)
NM
Non-GAAP*
Core operating earnings/(loss)
$204
($5,049)
NM
$498
($5,283)
NM
Core operating margins
0.8 %
(21.7) %
22.5 Pts
0.7 %
(8.1) %
8.8 Pts
Core loss per share
($0.34)
($7.47)
NM
($1.30)
($9.22)
NM
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
The Boeing Company (NYSE: BA) recorded third quarter revenue of $24.2 billion, primarily reflecting higher defense and services volume and less favorable commercial delivery mix. The company reported GAAP loss per share of ($0.26) and core loss per share (non-GAAP)* of ($0.34). Operating cash flow in the quarter was $1.5 billion and free cash flow (non-GAAP)* was $0.5 billion. Total company backlog at quarter end grew to a record $745 billion.
"Recent milestones, including certification of the 737-7 and 737-10 and selection to design and build the Navy's sixth-generation fighter aircraft, are important steps as we continue building on our progress," said Kelly Ortberg, Boeing president and chief executive officer. "But we are not done. We remain focused on safety and quality as we redouble our efforts on Lean and disciplined execution to deliver on our commitments and build the durable performance our stakeholders expect."
Table 2. Cash Flow
Third Quarter
Nine Months
(Millions)
2026
2025
2026
2025
Operating cash flow
$1,496
$1,123
$2,681
($266)
Less additions to property, plant & equipment
($1,032)
($885)
($3,040)
($1,986)
Free cash flow*
$464
$238
($359)
($2,252)
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP Measures Disclosures."
Operating cash flow was $1.5 billion in the quarter reflecting working capital timing partially offset by Department of Justice settlement payments of approximately $0.7 billion. Additions to property, plant and equipment primarily reflects higher investments in Charleston and St. Louis sites.
Table 3. Cash, Marketable Securities and Debt Balances
Quarter End
(Billions)
3Q 2026
2Q 2026
Cash and investments in marketable securities1
$20.7
$20.0
Consolidated debt
$45.9
$45.9
1 Marketable securities consist primarily of time deposits due within one year classified as "short-term investments."
Cash and investments in marketable securities totaled $20.7 billion, compared to $20.0 billion at the beginning of the quarter primarily reflecting cash flow generated in the quarter. The company maintains access to credit facilities of $10.0 billion, which remain undrawn.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes
Third Quarter
Nine Months
(Dollars in Millions)
2026
2025
Change
2026
2025
Change
Deliveries
161
160
1 %
475
440
8 %
Revenues
$10,720
$11,094
(3) %
$31,674
$30,115
5 %
Loss from operations
($697)
($5,353)
NM
($1,582)
($6,447)
NM
Operating margins
(6.5) %
(48.3) %
41.8 Pts
(5.0) %
(21.4) %
16.4 Pts
Commercial Airplanes third quarter revenue of $10.7 billion and operating margin of (6.5) percent primarily reflects less favorable delivery mix, higher projected costs associated with future production rate adjustments and higher estimated supply chain costs. Third quarter 2025 operating margins were impacted by a charge on the 777X program.
The 737 program continues to progress toward stabilized production of 47 per month. During the quarter, the 737-7 received amended type certification from the Federal Aviation Administration, and the 737-10 received certification in October. The 787 program remains stable at a production rate of 8 per month. In the quarter, the 777X program continued to progress on 777-9 certification flight testing and remains on track for first delivery in 2027.
Commercial Airplanes booked 300 net orders including orders from Turkish Airlines, Ethiopian Airlines and Lufthansa. Commercial Airplanes delivered 161 airplanes and backlog included over 6,300 airplanes valued at a record $612 billion.
Defense, Space & Security
Table 5. Defense, Space & Security
Third Quarter
Nine Months
(Dollars in Millions)
2026
2025
Change
2026
2025
Change
Revenues
$7,935
$6,902
15 %
$23,017
$19,817
16 %
Earnings from operations
$492
$114
332 %
$710
$379
87 %
Operating margins
6.2 %
1.7 %
4.5 Pts
3.1 %
1.9 %
1.2 Pts
Defense, Space & Security third quarter revenue was $7.9 billion driven by higher volume. Operating margin of 6.2 percent primarily reflects a $252 million gain on the HRL Laboratories sale and improved operational performance.
During the quarter, Defense, Space & Security was selected by the U.S. Navy for a contract to design, build and deliver the F/A-XX next-generation fighter aircraft. This order is not included in backlog pending completion of the source selection and evaluation review process. Also in the quarter, the company received a seven-year contract award to expand PAC-3 Seeker production. Backlog at Defense, Space & Security grew to a record $101 billion, with 23 percent representing orders from customers outside the U.S.
Global Services
Table 6. Global Services
Third Quarter
Nine Months
(Dollars in Millions)
2026
2025
Change
2026
2025
Change
Revenues
$5,574
$5,370
4 %
$16,288
$15,714
4 %
Earnings from operations
$1,019
$938
9 %
$2,958
$2,930
1 %
Operating margins
18.3 %
17.5 %
0.8 Pts
18.2 %
18.6 %
(0.4) Pts
Global Services third quarter revenue was $5.6 billion on higher volume. Operating margin of 18.3 percent reflects favorable volume and mix.
In the quarter, Global Services captured an award from the U.S. Army to provide maintenance services for the AH-64 Apache fleet. Global Services ended the quarter with backlog of $33 billion.
Additional Financial Information
Table 7. Additional Financial Information
Third Quarter
Nine Months
(Dollars in Millions)
2026
2025
2026
2025
Revenues
Unallocated items, eliminations and other
($41)
($96)
($14)
($131)
Earnings/(loss) from operations
Unallocated items, eliminations and other
($610)
($748)
($1,588)
($2,145)
FAS/CAS service cost adjustment
$150
$268
$460
$787
Other income, net
$96
$276
$369
$924
Interest and debt expense
($573)
($694)
($1,789)
($2,112)
Income tax benefit/(expense)
$7
($140)
($89)
($298)
Unallocated items, eliminations and other primarily reflects timing of allocations.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company's ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:
Core Operating Earnings/(Loss), Core Operating Margins and Core Earnings/(Loss) Per Share
Core operating earnings/(loss) is defined as GAAP Earnings/(loss) from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the Financial Accounting Standards (FAS) pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margins is defined as Core operating earnings/(loss) expressed as a percentage of revenue. Core earnings/(loss) per share is defined as GAAP Diluted earnings/(loss) per share excluding the net earnings/(loss) per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings/(loss), core operating margins and core earnings/(loss) per share for purposes of evaluating and forecasting underlying business performance. Management believes these core measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is provided on page 12.
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. See Table 2 on page 2 for a reconciliation of free cash flow to the most directly comparable GAAP measure, operating cash flow.
Caution Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and other similar words or expressions, or the negative thereof, generally can be used to help identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, our financial outlook, targets, plans, goals and objectives, and industry projections and outlooks, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate.
These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes and geopolitical developments; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, production quality issues, commercial airplane production rates, our ability to successfully develop and certify new aircraft or new derivative aircraft, and the ability of our aircraft to meet stringent performance and reliability standards; (4) changing budget and appropriation levels and acquisition priorities of the U.S. government, as well as significant delays in U.S. government appropriations; (5) our dependence on our subcontractors and suppliers, as well as the availability of highly skilled labor and raw materials; (6) work stoppages or other labor disruptions; (7) competition within our markets; (8) our non-U.S. operations and sales to non-U.S. customers, including tariffs, trade restrictions and government actions; (9) changes in accounting estimates; (10) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures, including anticipated synergies and quality improvements related to our acquisition of Spirit AeroSystems Holdings, Inc.; (11) our dependence on U.S. government contracts; (12) our reliance on fixed-price contracts; (13) our reliance on cost-type contracts; (14) contracts that include in-orbit incentive payments; (15) management of a complex, global IT infrastructure; (16) compromised or unauthorized access to our, our customers' and/or our suppliers' information and systems; (17) potential business disruptions, including threats to physical security or our information technology systems, extreme weather (including effects of climate change) or other acts of nature, and pandemics or other public health crises; (18) potential adverse developments in new or pending litigation and/or government inquiries or investigations; (19) potential environmental liabilities; (20) effects of climate change and legal, regulatory or market responses to such change; (21) credit rating agency actions and our ability to effectively manage our liquidity; (22) substantial pension and other postretirement benefit obligations; (23) the adequacy of our insurance coverage; (24) the dilutive effect of future issuances of our common stock; and (25) the preferential treatment of our 6.00% mandatory convertible preferred stock.
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Contact:
Investor Relations:
Eric Hill or Mike Harris [email protected]
Communications:
Wilson Chow [email protected]
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Nine months ended
September 30
Three months ended
September 30
(Dollars in millions, except per share data)
2026
2025
2026
2025
Sales of products
$61,117
$54,911
$20,753
$19,642
Sales of services
9,848
10,604
3,435
3,628
Total revenues
70,965
65,515
24,188
23,270
Cost of products
(55,664)
(54,522)
(19,146)
(22,737)
Cost of services
(8,174)
(8,516)
(2,875)
(2,908)
Total costs and expenses
(63,838)
(63,038)
(22,021)
(25,645)
7,127
2,477
2,167
(2,375)
Income from operating investments, net
229
42
215
14
General and administrative expense
(3,823)
(4,427)
(1,198)
(1,522)
Research and development expense, net
(2,654)
(2,651)
(830)
(897)
Gain/(loss) on dispositions, net
79
63
(1)
Earnings/(loss) from operations
958
(4,496)
354
(4,781)
Other income, net
369
924
96
276
Interest and debt expense
(1,789)
(2,112)
(573)
(694)
Loss before income taxes
(462)
(5,684)
(123)
(5,199)
Income tax (expense)/benefit
(89)
(298)
7
(140)
Net loss
(551)
(5,982)
(116)
(5,339)
Less: Net earnings/(loss) attributable to noncontrolling interest
13
3
(2)
Net loss attributable to Boeing shareholders
(564)
(5,985)
(116)
(5,337)
Less: Mandatory convertible preferred stock dividends
accumulated during the period
259
259
87
87
Net loss attributable to Boeing common shareholders
($823)
($6,244)
($203)
($5,424)
Basic loss per share
($1.04)
($8.25)
($0.26)
($7.14)
Diluted loss per share
($1.04)
($8.25)
($0.26)
($7.14)
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data)
September 30
2026
December 31
2025
Assets
Cash and cash equivalents
$9,498
$10,921
Short-term and other investments
11,216
18,479
Accounts receivable, net
4,069
2,921
Unbilled receivables, net
10,179
9,158
Inventories
90,948
84,679
Other current assets, net
2,674
2,301
Assets held for sale
688
Total current assets
129,272
128,459
Financing receivables and operating lease equipment, net
334
241
Property, plant and equipment, net of accumulated depreciation of $24,507 and
$23,613
16,685
15,361
Goodwill
17,778
17,275
Acquired intangible assets, net
1,279
1,567
Deferred income taxes
193
107
Investments
970
1,048
Other assets, net of accumulated amortization of $1,186 and $1,014
4,228
4,177
Total assets
$170,739
$168,235
Liabilities and equity
Accounts payable
$15,288
$13,109
Accrued liabilities
26,441
27,141
Advances and progress billings
67,502
59,404
Short-term debt and current portion of long-term debt
4,569
8,461
Liabilities held for sale
161
Total current liabilities
113,961
108,115
Deferred income taxes
310
216
Accrued retiree health care
1,995
2,091
Accrued pension plan liability, net
4,018
4,287
Other long-term liabilities
2,542
2,432
Long-term debt
41,351
45,637
Total liabilities
164,177
162,778
Shareholders' equity:
Mandatory convertible preferred stock, 6.00% Series A, par value $1.00 -
20,000,000 shares authorized; 5,750,000 shares issued; aggregate
liquidation preference $5,750
6
6
Common stock, par value $5.00 – 1,200,000,000 shares authorized;
1,012,261,159 shares issued
5,061
5,061
Additional paid-in capital
22,222
21,441
Treasury stock, at cost - 220,364,848 and 227,562,887 shares
(27,159)
(28,029)
Retained earnings
16,429
17,252
Accumulated other comprehensive loss
(10,012)
(10,277)
Total shareholders' equity
6,547
5,454
Noncontrolling interests
15
3
Total equity
6,562
5,457
Total liabilities and equity
$170,739
$168,235
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
Nine months ended
September 30
(Dollars in millions)
2026
2025
Cash flows – operating activities:
Net loss
($551)
($5,982)
Adjustments to reconcile net loss to net cash provided/(used) by operating activities:
Non-cash items –
Share-based plans expense
361
343
Treasury shares issued for 401(k) contributions
1,275
1,173
Depreciation and amortization
1,753
1,417
Investment/asset impairment charges, net
122
32
Gain on dispositions, net
(79)
(63)
777X and 767 reach-forward losses
86
5,140
Other charges and credits, net
(1)
217
Changes in assets and liabilities –
Accounts receivable
(1,130)
(836)
Unbilled receivables
(1,039)
(679)
Advances and progress billings
8,113
(2,065)
Inventories
(6,733)
(116)
Other current assets
(127)
227
Accounts payable
2,436
539
Accrued liabilities
(1,562)
574
Income taxes receivable, payable and deferred
(76)
93
Other long-term liabilities
(148)
(294)
Pension and other postretirement plans
(86)
(436)
Financing receivables and operating lease equipment, net
(112)
274
Other
179
176
Net cash provided/(used) by operating activities
2,681
(266)
Cash flows – investing activities:
Payments to acquire property, plant and equipment
(3,040)
(1,986)
Proceeds from disposals of property, plant and equipment
21
5
Proceeds from dispositions
35
Contributions to investments
(28,170)
(36,337)
Proceeds from investments
35,040
32,674
Supplier notes receivable
(11)
(292)
Repayments on supplier notes receivable
12
Other
1
Net cash provided/(used) by investing activities
3,853
(5,901)
Cash flows – financing activities:
New borrowings
46
138
Debt repayments
(8,415)
(721)
Employee taxes on certain share-based payment arrangements
(38)
(28)
Dividends paid on Mandatory convertible preferred stock
(259)
(244)
Other
46
43
Net cash used by financing activities
(8,620)
(812)
Effect of exchange rate changes on cash and cash equivalents
5
39
Net decrease in cash & cash equivalents, including restricted
(2,081)
(6,940)
Less net decrease in cash & cash equivalents classified as Assets held for sale
41
Cash & cash equivalents, including restricted, at beginning of year
11,663
13,822
Cash & cash equivalents, including restricted, at end of period
9,541
6,882
Less restricted cash & cash equivalents, included in Investments
43
709
Cash & cash equivalents at end of period
$9,498
$6,173
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Nine months ended
September 30
Three months ended
September 30
(Dollars in millions)
2026
2025
2026
2025
Revenues:
Commercial Airplanes
$31,674
$30,115
$10,720
$11,094
Defense, Space & Security
23,017
19,817
7,935
6,902
Global Services
16,288
15,714
5,574
5,370
Unallocated items, eliminations and other
(14)
(131)
(41)
(96)
Total revenues
$70,965
$65,515
$24,188
$23,270
Earnings/(loss) from operations:
Commercial Airplanes
($1,582)
($6,447)
($697)
($5,353)
Defense, Space & Security
710
379
492
114
Global Services
2,958
2,930
1,019
938
Segment operating earnings/(loss)
2,086
(3,138)
814
(4,301)
Unallocated items, eliminations and other
(1,588)
(2,145)
(610)
(748)
FAS/CAS service cost adjustment
460
787
150
268
Earnings/(loss) from operations
958
(4,496)
354
(4,781)
Other income, net
369
924
96
276
Interest and debt expense
(1,789)
(2,112)
(573)
(694)
Loss before income taxes
(462)
(5,684)
(123)
(5,199)
Income tax (expense)/benefit
(89)
(298)
7
(140)
Net loss
(551)
(5,982)
(116)
(5,339)
Less: Net earnings/(loss) attributable to noncontrolling interest
13
3
(2)
Net loss attributable to Boeing shareholders
(564)
(5,985)
(116)
(5,337)
Less: Mandatory convertible preferred stock dividends
accumulated during the period
259
259
87
87
Net loss attributable to Boeing common shareholders
($823)
($6,244)
($203)
($5,424)
Research and development expense, net:
Commercial Airplanes
$1,700
$1,657
$500
$565
Defense, Space & Security
563
618
197
198
Global Services
76
91
28
32
Other
315
285
105
102
Total research and development expense, net
$2,654
$2,651
$830
$897
Unallocated items, eliminations and other:
Share-based plans
($44)
($40)
$8
$11
Deferred compensation
(104)
(150)
3
(70)
Amortization of previously capitalized interest
(69)
(64)
(24)
(22)
Research and development expense, net
(315)
(285)
(105)
(102)
Eliminations and other unallocated items
(1,056)
(1,606)
(492)
(565)
Sub-total (included in Core operating earnings/(loss)
(1,588)
(2,145)
(610)
(748)
Pension FAS/CAS service cost adjustment
277
588
92
198
Postretirement FAS/CAS service cost adjustment
183
199
58
70
FAS/CAS service cost adjustment
460
787
$150
$268
Total
($1,128)
($1,358)
($460)
($480)
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries
Nine months ended
September 30
Three months ended
September 30
Commercial Airplanes
2026
2025
2026
2025
737
367
330
124
121
767
26
20
10
6
777
20
29
5
9
787
62
61
22
24
Total
475
440
161
160
Defense, Space & Security
AH-64 Apache (New)
11
14
3
8
AH-64 Apache (Remanufactured)
36
28
12
7
CH-47 Chinook (New)
7
1
2
—
CH-47 Chinook (Renewed)
4
9
1
2
F-15 Models
6
7
2
3
F/A-18 Models
7
12
2
3
KC-46 Tanker
15
9
7
4
MH-139
6
6
1
1
P-8 Models
2
4
—
2
Commercial Satellites
4
4
3
2
Total1
98
94
33
32
1 Deliveries of new-build production units, including remanufactures and modifications
Total backlog (Dollars in millions)
September 30
2026
December 31
2025
Commercial Airplanes
$611,833
$567,290
Defense, Space & Security
100,505
84,786
Global Services
32,725
29,720
Unallocated items, eliminations and other
368
411
Total backlog
$745,431
$682,207
Contractual backlog
$692,767
$639,721
Unobligated backlog
52,664
42,486
Total backlog
$745,431
$682,207
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core operating earnings/(loss), core operating margins, and core earnings/(loss) per share with the most directly comparable GAAP financial measures of earnings/(loss) from operations, operating margins, and diluted earnings/(loss) per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures.
(Dollars in millions, except per share data)
Third Quarter 2026
Third Quarter 2025
$ millions
Per Share
$ millions
Per Share
Revenues
$24,188
$23,270
Earnings/(loss) from operations (GAAP)
354
(4,781)
Operating margins (GAAP)
1.5 %
(20.5) %
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment
(92)
(198)
Postretirement FAS/CAS service cost adjustment
(58)
(70)
FAS/CAS service cost adjustment
(150)
(268)
Core operating earnings/(loss) (non-GAAP)
$204
($5,049)
Core operating margins (non-GAAP)
0.8 %
(21.7) %
Diluted loss per share (GAAP)
($0.26)
($7.14)
Pension FAS/CAS service cost adjustment
($92)
(0.12)
($198)
(0.26)
Postretirement FAS/CAS service cost adjustment
(58)
(0.07)
(70)
(0.09)
Non-operating pension expense/(income)
76
0.10
(42)
(0.06)
Non-operating postretirement income
(9)
(0.01)
(5)
(0.01)
Provision for deferred income taxes on adjustments 1
17
0.02
66
0.09
Subtotal of adjustments
($66)
($0.08)
($249)
($0.33)
Core loss per share (non-GAAP)
($0.34)
($7.47)
Diluted weighted average common shares outstanding (in
millions)
792.7
759.9
1 The income tax impact is calculated using the U.S. corporate statutory tax rate.
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core operating earnings/(loss), core operating margins, and core earnings/(loss) per share with the most directly comparable GAAP financial measures of earnings/(loss) from operations, operating margins, and diluted earnings/(loss) per share. See page 5 of this release for additional information on the use of these non-GAAP financial measures.
(Dollars in millions, except per share data)
Nine Months 2026
Nine Months 2025
$ millions
Per Share
$ millions
Per Share
Revenues
$70,965
$65,515
Earnings/(loss) from operations (GAAP)
958
(4,496)
Operating margins (GAAP)
1.3 %
(6.9) %
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment
(277)
(588)
Postretirement FAS/CAS service cost adjustment
(183)
(199)
FAS/CAS service cost adjustment
(460)
(787)
Core operating earnings/(loss) (non-GAAP)
$498
($5,283)
Core operating margins (non-GAAP)
0.7 %
(8.1) %
Diluted loss per share (GAAP)
($1.04)
($8.25)
Pension FAS/CAS service cost adjustment
($277)
(0.35)
($588)
(0.78)
Postretirement FAS/CAS service cost adjustment
(183)
(0.23)
(199)
(0.26)
Non-operating pension expense/(income)
223
0.28
(127)
(0.17)
Non-operating postretirement income
(27)
(0.03)
(14)
(0.02)
Provision for deferred income taxes on adjustments 1
55
0.07
195
0.26
Subtotal of adjustments
($209)
($0.26)
($733)
($0.97)
Core loss per share (non-GAAP)
($1.30)
($9.22)
Diluted weighted average common shares outstanding (in
millions)
790.4
756.7
1 The income tax impact is calculated using the U.S. corporate statutory tax rate.
Boeing (BA.N) posted a bigger third-quarter loss than expected on Tuesday, as supply-chain challenges and production delays in its commercial airplane division overshadowed stronger margins across the rest of the company.
Shares of the US planemaker fell 2.5% in premarket trading even as Boeing continues to recover from years of crises and controversies that dented its reputation, drained cash and saddled it with a heavy debt load.
During the quarter, Boeing secured certification for the 737 MAX 7 from US regulators, won the US Navy's sixth-generation F/A-XX fighter contract and generated free cash flow for another quarter, while certification of the larger MAX 10 followed in October.
"Expectations are rising, and they should. We have a stronger foundation than a year ago, but we also have more work to do to deliver on our backlog, strengthen our culture, and improve how we work every day," CEO Kelly Ortberg said in a memo to employees after the results.
Boeing reported an adjusted loss of 34 cents per share for the quarter through September, compared with market expectation of 21 cents, according to data compiled by LSEG.
Revenue at Boeing Commercial Airplanes dipped slightly to $10.7 billion, while operating loss stood at $697 million and margin shrank by just 6.5% compared with a contraction of 48.3% a year ago.
The company attributed the performance to less profitable jetliner deliveries and higher production costs, including from its supply chain.
Boeing has struggled to increase 737 output from 42 jets a month to 47, which it hoped to hit during the summer. It has not been able to make wings fast enough, CEO Kelly Ortberg said at an industrial conference in September.
At Boeing's defense division, higher deliveries, improved operational performance and a $252-million sale of a subsidiary contributed to nearly $500 million in quarterly earnings with an operating margin of 6.2%, up from 1.7% a year ago.
Boeing Global Services earned $1 billion and posted an operating margin of 18.3%.
The US planemaker ended the quarter with $25.2 billion in net debt, down slightly from $25.9 billion in the previous three months and $30.4 billion a year ago.
Boeing narrowed its third-quarter net loss as revenue increased and its defense business delivered stronger results. Shares of Boeing (BA) edged up about 1% in premarket trading following the release.
Boeing (BA - Free Report) came out with a quarterly loss of $0.34 per share versus the Zacks Consensus Estimate of a loss of $0.21. This compares to a loss of $7.47 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -61.91%. A quarter ago, it was expected that this airplane builder would post a loss of $0.34 per share when it actually produced a loss of $0.76, delivering a surprise of -123.53%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Boeing, which belongs to the Zacks Aerospace - Defense industry, posted revenues of $24.19 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.39%. This compares to year-ago revenues of $23.27 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Boeing shares have lost about 13.3% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Boeing?While Boeing has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Boeing was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.19 on $26.22 billion in revenues for the coming quarter and -$1.08 on $97.33 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Firefly Aerospace (FLY - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on November 10.
This space and defense technology company is expected to post quarterly loss of $0.49 per share in its upcoming report, which represents a year-over-year change of -48.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Firefly Aerospace's revenues are expected to be $106.31 million, up 245.4% from the year-ago quarter.
Hourglass Capital LLC lessened its stake in Citigroup Inc. (NYSE: C) by 6.7% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 100,894 shares of the company's stock after selling 7,243 shares during the quarter. Citigroup comprises about 2.7% of Hourglass Capital LLC's
How much lower can Tilray Brands (TLRY -3.20%) stock go? In the past five years, it has lost a whopping 97% of its value, and since the start of 2026, it's already down around 70%. Although the business has grown and diversified its operations, investors haven't seen a payoff from its efforts, as Tilray continues to struggle with overall profitability.
Has its decline been so significant that now can be a good time to buy the stock, despite its risks? Here's what investors need to know.
Image source: Getty Images.
Tilray's been growing via acquisitions, but its fundamentals remain underwhelmingAt its core, Tilray is a Canadian-based cannabis company. Like many of its peers, it's been eagerly waiting for and hoping for the day the U.S. market opens up, so that it can enter it and generate much more revenue from that area of its operations.
Legalization, however, isn't on the horizon. In the meantime, competition is fierce, and growth opportunities are limited in Canada. Some cannabis producers have gotten leaner to trim costs, but Tilray has gone the route of expansion via acquisitions, loading up on beverage and alcohol brands. By doing so, its business has become larger, and it's expanded its presence in the U.S., potentially putting itself in a stronger position if and when marijuana legalization takes place.
But the businesses and brands it has been acquiring aren't exactly all that strong. And over the trailing 12 months, Tilray has generated more than $963 million in revenue but has still incurred an operating loss of $60.5 million.
There hasn't been much consistent growth; organically, the business is struggling, and instead, acquisitions and entering new markets have been the main drivers. It's also difficult to see a path to profitability, particularly given that acquisitions remain a key part of Tilray's growth strategy.
TLRY Tilray Brands$2.72-$0.09 (-3.20%)
NASDAQ · As of 4:00 PM ET 10/26/26
Investors shouldn't assume Tilray's stock can't go lowerTilray's stock may look cheap, with a valuation of around $400 million and annual sales approaching $1 billion, but that doesn't mean it's a good buy or that it's overdue for a rally. It's still unprofitable, its growth prospects aren't all that great, and it's still burning through cash from its day-to-day operations.
I would prefer to see the business get leaner, rather than more bloated with acquisitions. I understand the strategy -- to simply have more growth opportunities, but that doesn't make Tilray a better overall investment. With continual losses and cash burn, there just isn't a compelling reason to take a chance on the stock, as it can still go lower.
First Citizens Financial Corp bought a new stake in shares of NVIDIA Corporation (NASDAQ: NVDA) in the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 10,168 shares of the computer hardware maker's stock, valued at approximately $2,322,000. A number of other hedge
