3 hours ago
On August 13, Alphabet's (NASDAQ:GOOGL) Google unveiled Gemini 3.7 Flash, a new AI model built for coding and automated business tasks. The launch came without word on when the company's flagship Gemini 3.5 Pro model will arrive, a gap investors have watched closely as a gauge of whether Google's DeepMind unit can keep pace with Anthropic and OpenAI. It also landed the same week that Alphabet closed a $25 billion bond sale and posted its first-ever negative free cash flow quarter.
Gemini 3.7 Flash arrived just three weeks after Gemini 3.6 Flash, a pace that signals Google is iterating quickly on the models it hopes will power autonomous AI agents. The new model targets businesses building systems that can plan tasks, use software tools, and complete multi-step workflows with less human oversight, and Google says it shows improved performance on coding tasks including debugging, issue resolution, and production-ready code generation. To win over developers, Google priced Gemini 3.7 Flash at 75 cents per million input tokens and $3.75 per million output tokens through the end of the year, half the original cost of Gemini 3.6 Flash. It is also rolling out immediately to Gemini Spark, Google's subscription AI agent service available in more than 160 countries.
That pricing sits alongside a cloud business converting AI investment into revenue. Google Cloud's backlog has climbed to $514 billion, and Alphabet expects to recognize a little more than half of it as revenue over the next 24 months. Alphabet also holds more than $240 billion in cash and marketable securities, giving it room to keep funding its buildout as free cash flow comes under pressure.
Alphabet's capital expenditures are now guided to $195 billion to $205 billion for 2026, up from $91 billion in 2025 and $53 billion in 2024. Second-quarter capex alone was $45 billion, double the year-earlier figure, pushing Alphabet to a quarterly free cash flow loss of $5.9 billion. Buybacks have gone to zero, and Alphabet raised roughly $56 billion in debt plus about $50 billion from stock sales in the first half to help cover the gap.
That borrowing culminated in a $25 billion, ten-tranche bond sale that closed Monday, ranging from notes due in 2028 to a $2.5 billion tranche not due until 2066. Much of that money funds servers and networking gear that Alphabet itself depreciates over about six years, meaning a large share of this year's spending will need to be repaid all over again long before the longest bonds come due.
#flow
Gemini 3.7 Flash arrived just three weeks after Gemini 3.6 Flash, a pace that signals Google is iterating quickly on the models it hopes will power autonomous AI agents. The new model targets businesses building systems that can plan tasks, use software tools, and complete multi-step workflows with less human oversight, and Google says it shows improved performance on coding tasks including debugging, issue resolution, and production-ready code generation. To win over developers, Google priced Gemini 3.7 Flash at 75 cents per million input tokens and $3.75 per million output tokens through the end of the year, half the original cost of Gemini 3.6 Flash. It is also rolling out immediately to Gemini Spark, Google's subscription AI agent service available in more than 160 countries.
That pricing sits alongside a cloud business converting AI investment into revenue. Google Cloud's backlog has climbed to $514 billion, and Alphabet expects to recognize a little more than half of it as revenue over the next 24 months. Alphabet also holds more than $240 billion in cash and marketable securities, giving it room to keep funding its buildout as free cash flow comes under pressure.
Alphabet's capital expenditures are now guided to $195 billion to $205 billion for 2026, up from $91 billion in 2025 and $53 billion in 2024. Second-quarter capex alone was $45 billion, double the year-earlier figure, pushing Alphabet to a quarterly free cash flow loss of $5.9 billion. Buybacks have gone to zero, and Alphabet raised roughly $56 billion in debt plus about $50 billion from stock sales in the first half to help cover the gap.
That borrowing culminated in a $25 billion, ten-tranche bond sale that closed Monday, ranging from notes due in 2028 to a $2.5 billion tranche not due until 2066. Much of that money funds servers and networking gear that Alphabet itself depreciates over about six years, meaning a large share of this year's spending will need to be repaid all over again long before the longest bonds come due.
#flow
1 day ago
Berkshire Hathaway Inc. (NYSE:BRK-B) shares closed 1.5% higher at $529.42 on August 10 after gaining as much as over 3% during the session. The Class A shares rose as much as 3.3%, reaching their highest level since the day before Warren Buffett announced he would step down as chief executive.
The market was not simply responding to another profitable quarter. Berkshire-defined operating earnings, a non-GAAP measure of performance across its businesses, rose 16% to $12.98 billion. The bigger surprise was how quickly Greg Abel had started putting Berkshire Hathaway Inc. (NYSE:BRK-B)'s enormous liquidity to work.
Berkshire purchased $23.5 billion of publicly traded stocks during the second quarter and repurchased $4.5 billion of its own shares. In July, it deployed at least another $10.1 billion through additional buybacks and the acquisition of Taylor Morrison Home Corporation.
The question is whether this marks the beginning of a more active capital-allocation era or merely a busy stretch that still leaves Abel with hundreds of billions of dollars to deploy.
Pixabay/Public Domain
#berkshire #billion #quarter
The market was not simply responding to another profitable quarter. Berkshire-defined operating earnings, a non-GAAP measure of performance across its businesses, rose 16% to $12.98 billion. The bigger surprise was how quickly Greg Abel had started putting Berkshire Hathaway Inc. (NYSE:BRK-B)'s enormous liquidity to work.
Berkshire purchased $23.5 billion of publicly traded stocks during the second quarter and repurchased $4.5 billion of its own shares. In July, it deployed at least another $10.1 billion through additional buybacks and the acquisition of Taylor Morrison Home Corporation.
The question is whether this marks the beginning of a more active capital-allocation era or merely a busy stretch that still leaves Abel with hundreds of billions of dollars to deploy.
Pixabay/Public Domain
#berkshire #billion #quarter
1 day ago
On August 5, Corpay Inc. (NYSE:CPAY) announced in its second-quarter 2026 earnings call that the company's revenue hit $1.34 billion. This number was up 21% year-over-year and $45 million above expectations, while cash earnings per share reached $7.00, up 36% and an all-time company record. Management didn't just celebrate the quarter. It raised guidance for the rest of the year.
Corpay's organic revenue growth ran 10% in the quarter, led by 16% growth in Corporate Payments and 8% in Vehicle Payments, with those two segments combining for 12% organic growth on their own. Retention held at 93%, new bookings grew 30% year over year, and same-store sales turned positive at 1%. Two recent deals, the Alpha acquisition and the Avid investment, added $0.39 to cash EPS in the quarter, right on the company's own target. Alpha's integration is more than 80% complete, with its corporate volume moved onto Corpay's global platform, while Avid grew sales more than 30% and doubled its EBITDA to a record level.
On the back of that performance, Corpay raised full-year 2026 revenue guidance to $5.31 billion at the midpoint, 17% growth, and lifted cash EPS guidance to $27.35, up from an initial $26 target and implying 28% growth for the year. The company also pointed to roughly $15 billion of available capital over its forecast period, earmarked for either share buybacks or acquisitions of other corporate payment businesses.
Not every line in the report was clean. Corpay recorded a $100 million settlement charge tied to an FTC matter, still subject to final commission approval, and operating costs rose 9% excluding currency, stock compensation, and amortization, driven partly by sales investment and modestly higher credit losses. Corporate Payments organic growth of 16% already absorbed a 180 basis point drag from float revenue compression as interest rates came down.
Corpay is also divesting Epics, a smaller vehicle payments **** et, in a deal expected to close between September and October, with planning built around a September 1 date. That sale is expected to cut 2026 revenue by about $40 million, though management says proceeds will fund buybacks to keep the earnings impact neutral. Executives also acknowledged that Q2's beat included roughly $30 million from favorable macro conditions, on top of underlying performance, a reminder that not every dollar of upside is repeatable.
#Growth #payments #corporate #quarter
Corpay's organic revenue growth ran 10% in the quarter, led by 16% growth in Corporate Payments and 8% in Vehicle Payments, with those two segments combining for 12% organic growth on their own. Retention held at 93%, new bookings grew 30% year over year, and same-store sales turned positive at 1%. Two recent deals, the Alpha acquisition and the Avid investment, added $0.39 to cash EPS in the quarter, right on the company's own target. Alpha's integration is more than 80% complete, with its corporate volume moved onto Corpay's global platform, while Avid grew sales more than 30% and doubled its EBITDA to a record level.
On the back of that performance, Corpay raised full-year 2026 revenue guidance to $5.31 billion at the midpoint, 17% growth, and lifted cash EPS guidance to $27.35, up from an initial $26 target and implying 28% growth for the year. The company also pointed to roughly $15 billion of available capital over its forecast period, earmarked for either share buybacks or acquisitions of other corporate payment businesses.
Not every line in the report was clean. Corpay recorded a $100 million settlement charge tied to an FTC matter, still subject to final commission approval, and operating costs rose 9% excluding currency, stock compensation, and amortization, driven partly by sales investment and modestly higher credit losses. Corporate Payments organic growth of 16% already absorbed a 180 basis point drag from float revenue compression as interest rates came down.
Corpay is also divesting Epics, a smaller vehicle payments **** et, in a deal expected to close between September and October, with planning built around a September 1 date. That sale is expected to cut 2026 revenue by about $40 million, though management says proceeds will fund buybacks to keep the earnings impact neutral. Executives also acknowledged that Q2's beat included roughly $30 million from favorable macro conditions, on top of underlying performance, a reminder that not every dollar of upside is repeatable.
#Growth #payments #corporate #quarter
2 days ago
CF Industries (NYSE:CF) just posted a first half of 2026 that most fertilizer companies would frame around one thing: the conflict with Iran. Instead, management spent the earnings call on August 6 arguing that something bigger is happening underneath the headlines. Adjusted EBITDA hit $2.2 billion for the first half, ammonia plants ran at nearly 98% of available capacity, and the company raised its own estimate of what it can earn in a normal year. Investors chasing the geopolitical story may be missing the real one.
Management's central argument is that global nitrogen capacity has gotten permanently more expensive to build, which raises the price required to justify new plants and therefore lifts what CF Industries can earn even in ordinary years. That case leans on Blue Point, where the company has now received every permit needed to start construction, ordered nearly all its long lead items, and expects module fabrication to begin later this year. Combined with the planned return of the Yazoo City Complex in the first half of 2027, those projects support management's target of roughly $3.3 billion in mid-cycle EBITDA by 2030, up from a new $2.9 billion baseline, and neither figure includes any ****** p from the current conflict.
The quarter's numbers back up the operational side of that story. Second quarter net earnings reached $727 million, or $4.73 per diluted share, while trailing 12-month free cash flow came in around $1.8 billion. CF Industries has funneled much of that into buybacks, repurchasing 10.6 million shares for $958 million over the past year, and the board raised the quarterly dividend 20% to $0.60 per share in July. Shares outstanding have fallen 29% since the start of 2021 while the dividend has doubled, a combination management says has lifted investor ownership of the underlying business by more than 40% since 2020.
Management spent real time on the call pushing back on the idea that CF Industries' growth is mostly a geopolitical trade, which suggests that's exactly how a lot of investors are currently pricing the stock. Demand data from the quarter gives that read some support. Customers in regions with second-half application seasons deferred purchases as prices rose, and North American buyers slowed down enough in June that channel inventories fell to a very low point.
That weakness only reversed once thin inventories forced a rush into July's UAN and ammonia fill programs. Meanwhile, capital spending is about to climb as Blue Point construction ramps up, with CF Industries' share of 2026 capex projected at $950 million out of a company total of $1.3 billion, a bill that has to be paid before any of the 2030 targets show up in earnings.
#million #first #year
Management's central argument is that global nitrogen capacity has gotten permanently more expensive to build, which raises the price required to justify new plants and therefore lifts what CF Industries can earn even in ordinary years. That case leans on Blue Point, where the company has now received every permit needed to start construction, ordered nearly all its long lead items, and expects module fabrication to begin later this year. Combined with the planned return of the Yazoo City Complex in the first half of 2027, those projects support management's target of roughly $3.3 billion in mid-cycle EBITDA by 2030, up from a new $2.9 billion baseline, and neither figure includes any ****** p from the current conflict.
The quarter's numbers back up the operational side of that story. Second quarter net earnings reached $727 million, or $4.73 per diluted share, while trailing 12-month free cash flow came in around $1.8 billion. CF Industries has funneled much of that into buybacks, repurchasing 10.6 million shares for $958 million over the past year, and the board raised the quarterly dividend 20% to $0.60 per share in July. Shares outstanding have fallen 29% since the start of 2021 while the dividend has doubled, a combination management says has lifted investor ownership of the underlying business by more than 40% since 2020.
Management spent real time on the call pushing back on the idea that CF Industries' growth is mostly a geopolitical trade, which suggests that's exactly how a lot of investors are currently pricing the stock. Demand data from the quarter gives that read some support. Customers in regions with second-half application seasons deferred purchases as prices rose, and North American buyers slowed down enough in June that channel inventories fell to a very low point.
That weakness only reversed once thin inventories forced a rush into July's UAN and ammonia fill programs. Meanwhile, capital spending is about to climb as Blue Point construction ramps up, with CF Industries' share of 2026 capex projected at $950 million out of a company total of $1.3 billion, a bill that has to be paid before any of the 2030 targets show up in earnings.
#million #first #year
2 days ago
Interested in Pan American Silver Corp.? Here are five stocks we like better.
Strong cash generation and shareholder returns: Pan American Silver reported $344 million in attributable free cash flow and returned a record $300 million to shareholders through buybacks and dividends. The company ended the quarter with $1.8 billion in cash and investments and approximately $3.2 billion in total available liquidity.
Silver outlook maintained, but gold guidance is pressured: Second-quarter silver production reached 6.5 million attributable ounces, supporting the full-year guidance of 25 million to 27 million ounces. Gold production was below quarterly expectations, and the company now expects to finish at the low end of its 700,000-to-750,000-ounce annual guidance range.
Operational challenges and project updates: Seismic activity at Jacobina and lower gold grades at El Peñón are weighing on gold output, while Pan American is pursuing mining and processing improvements at Jacobina. Development advanced at La Colorada and Timmins, but Escobal's consultation process continues without a restart timeline.
Gold and Silver Pulled Back—Here's Why the Bull Case Is Intact
#million #guidance #jacobina
Strong cash generation and shareholder returns: Pan American Silver reported $344 million in attributable free cash flow and returned a record $300 million to shareholders through buybacks and dividends. The company ended the quarter with $1.8 billion in cash and investments and approximately $3.2 billion in total available liquidity.
Silver outlook maintained, but gold guidance is pressured: Second-quarter silver production reached 6.5 million attributable ounces, supporting the full-year guidance of 25 million to 27 million ounces. Gold production was below quarterly expectations, and the company now expects to finish at the low end of its 700,000-to-750,000-ounce annual guidance range.
Operational challenges and project updates: Seismic activity at Jacobina and lower gold grades at El Peñón are weighing on gold output, while Pan American is pursuing mining and processing improvements at Jacobina. Development advanced at La Colorada and Timmins, but Escobal's consultation process continues without a restart timeline.
Gold and Silver Pulled Back—Here's Why the Bull Case Is Intact
#million #guidance #jacobina
2 days ago
Personal care products provider Kimberly-Clark Corporation (NYSE:KMB)'s shares are down by 17% over the past year and are up by 9% year-to-date. It is currently undergoing a major transformation through acquiring Kenvue. Cramer has discussed Kimberly-Clark Corporation (NYSE:KMB)'s acquisition several times and linked its performance with consumer goods giant Procter & Gamble. In his morning appearance on August 6th, the CNBC TV host discussed Kimberly-Clark Corporation (NYSE:KMB)'s earnings and the tailwinds from the acquisition:
"I like the way Kimberly acted, even though they had a asterisk China diaper problem which I did not know about. The stock started down and then finished up nicely. I think that Chu is doing is a nice job. I think that Kenvue acquisition's going to be very good. Proctor was not as good, so I think that maybe you're going to start seeing, even though Proctor's much bigger than Kimberly, maybe we're going to have a new colossus."
On the 4th, Kimberly-Clark Corporation (NYSE:KMB) had reported its second quarter earnings to post $4.19 billion in revenue that missed **** yst estimates of $4.22 billion. Yet, the firm also cut its organic sales growth and earnings forecasts. Yet, the shares close 3.7% higher on the 4th, exhibiting solid momentum after the report hit the wires before market open.
Kimberly-Clark Corporation (NYSE:KMB)'s business model, i.e., selling personal care products, is resistant in a tough economy as consumers continue to spend on its products even if they reduce discretionary spending. Cramer's previous comments about the firm have also noted this, but the firm's sluggish revenue performance in the second quarter opens up concerns about its growth. Additionally, turmoil in the oil market stemming from the Iran war and other factors can stress its margins. This stress, at a time when Kimberly-Clark Corporation (NYSE:KMB) might have to deal with high debt levels as well. Consequently, 15% of the float being short as of July-end is unsurprising.
On the other hand, the difference between Kimberly-Clark Corporation (NYSE:KMB) and Procter & Gamble Company (NYSE:PG) is visible when we compare their forward P/E. While the former has a multiple of 14.93, the latter is valued better through a 20.9 multiple. Procter & Gamble Company (NYSE:PG)'s ability to sustain high prices courtesy of its brand strength and market share (60% in blades and razors and 45% to 50% in fabric) is one of its strongest suits. It enables the firm to deliver stable revenue growth, as evidenced by a 2% jump in its June quarter sales. Additionally, Procter & Gamble Company (NYSE:PG)'s stable defensive market lead it to commit to stable stock buybacks ($6 billion to $7 billion in FY27) and stable dividends (2.48% yield). Naturally, the P/E is higher, and the short interest is negligible at 1.17% of the float.
#company
"I like the way Kimberly acted, even though they had a asterisk China diaper problem which I did not know about. The stock started down and then finished up nicely. I think that Chu is doing is a nice job. I think that Kenvue acquisition's going to be very good. Proctor was not as good, so I think that maybe you're going to start seeing, even though Proctor's much bigger than Kimberly, maybe we're going to have a new colossus."
On the 4th, Kimberly-Clark Corporation (NYSE:KMB) had reported its second quarter earnings to post $4.19 billion in revenue that missed **** yst estimates of $4.22 billion. Yet, the firm also cut its organic sales growth and earnings forecasts. Yet, the shares close 3.7% higher on the 4th, exhibiting solid momentum after the report hit the wires before market open.
Kimberly-Clark Corporation (NYSE:KMB)'s business model, i.e., selling personal care products, is resistant in a tough economy as consumers continue to spend on its products even if they reduce discretionary spending. Cramer's previous comments about the firm have also noted this, but the firm's sluggish revenue performance in the second quarter opens up concerns about its growth. Additionally, turmoil in the oil market stemming from the Iran war and other factors can stress its margins. This stress, at a time when Kimberly-Clark Corporation (NYSE:KMB) might have to deal with high debt levels as well. Consequently, 15% of the float being short as of July-end is unsurprising.
On the other hand, the difference between Kimberly-Clark Corporation (NYSE:KMB) and Procter & Gamble Company (NYSE:PG) is visible when we compare their forward P/E. While the former has a multiple of 14.93, the latter is valued better through a 20.9 multiple. Procter & Gamble Company (NYSE:PG)'s ability to sustain high prices courtesy of its brand strength and market share (60% in blades and razors and 45% to 50% in fabric) is one of its strongest suits. It enables the firm to deliver stable revenue growth, as evidenced by a 2% jump in its June quarter sales. Additionally, Procter & Gamble Company (NYSE:PG)'s stable defensive market lead it to commit to stable stock buybacks ($6 billion to $7 billion in FY27) and stable dividends (2.48% yield). Naturally, the P/E is higher, and the short interest is negligible at 1.17% of the float.
#company
2 days ago
Radian Group (NYSE:RDN) delivered its Q2 2026 earnings on August 6, and the numbers marked a turning point. Total revenue jumped 93% year-over-year to $575 million, while net earned premiums more than doubled to $504 million, as the company's first full quarter with newly acquired specialty insurer Inigo showed up in the results. Book value per share climbed 8.5% to $36. With a forward P/E of just 7.19, the market doesn't seem convinced the growth will stick.
Radian's legacy mortgage insurance operation kept humming along on its own. New insurance written rose 14% year-over-year to $16.3 billion, and persistency held at 82%, pushing primary insurance in force to a record $284 billion. About half of that portfolio carries a mortgage rate of 5.5% or lower, so those borrowers have little reason to refinance away, which supports future premium income. Credit quality kept improving too. New defaults fell 9% from the prior quarter to roughly 12,400, and cures kept outpacing new defaults, dropping the portfolio default rate to 2.47%. That trend produced $20 million of favorable reserve development in the quarter, while the mortgage segment's expense ratio improved to 23% from 25% a year earlier.
The Inigo deal changed Radian's shape almost overnight. Specialty insurance now makes up roughly 50% of total revenue and 53% of net premiums earned, giving Radian a second, meaningfully sized engine. Capital returns kept flowing at the same time. Radian repurchased $76 million of stock in the quarter and about $50 million more so far in the third quarter, pushing year-to-date buybacks to $176 million, while Radian Guaranty sent a $200 million dividend up to the parent company.
The newly acquired specialty business is running into a tougher market. Management said competition is intensifying in property insurance and reinsurance and that rates continue to soften, a cyclical dynamic it says it expected when it underwrote the Inigo deal. The segment's net combined ratio came in at 98% for the quarter and 93% for the first half of 2026, elevated in part because Radian set aside reserves tied to the ongoing conflict in the Middle East, covering both expected and potential claims plus updated inflation **** umptions across the insured portfolio. Management now expects a combined ratio in the low 90s going forward as softer pricing works its way into results, versus the high 80s it had been tracking toward before the reserve charge. Radian is also mid-transition at the top, with CEO-elect Mike Weinbach set to take over from longtime CEO Rick Thornberry, and it still had $75 million outstanding on its revolving credit facility at quarter-end.
#million #quarter #specialty #Portfolio
Radian's legacy mortgage insurance operation kept humming along on its own. New insurance written rose 14% year-over-year to $16.3 billion, and persistency held at 82%, pushing primary insurance in force to a record $284 billion. About half of that portfolio carries a mortgage rate of 5.5% or lower, so those borrowers have little reason to refinance away, which supports future premium income. Credit quality kept improving too. New defaults fell 9% from the prior quarter to roughly 12,400, and cures kept outpacing new defaults, dropping the portfolio default rate to 2.47%. That trend produced $20 million of favorable reserve development in the quarter, while the mortgage segment's expense ratio improved to 23% from 25% a year earlier.
The Inigo deal changed Radian's shape almost overnight. Specialty insurance now makes up roughly 50% of total revenue and 53% of net premiums earned, giving Radian a second, meaningfully sized engine. Capital returns kept flowing at the same time. Radian repurchased $76 million of stock in the quarter and about $50 million more so far in the third quarter, pushing year-to-date buybacks to $176 million, while Radian Guaranty sent a $200 million dividend up to the parent company.
The newly acquired specialty business is running into a tougher market. Management said competition is intensifying in property insurance and reinsurance and that rates continue to soften, a cyclical dynamic it says it expected when it underwrote the Inigo deal. The segment's net combined ratio came in at 98% for the quarter and 93% for the first half of 2026, elevated in part because Radian set aside reserves tied to the ongoing conflict in the Middle East, covering both expected and potential claims plus updated inflation **** umptions across the insured portfolio. Management now expects a combined ratio in the low 90s going forward as softer pricing works its way into results, versus the high 80s it had been tracking toward before the reserve charge. Radian is also mid-transition at the top, with CEO-elect Mike Weinbach set to take over from longtime CEO Rick Thornberry, and it still had $75 million outstanding on its revolving credit facility at quarter-end.
#million #quarter #specialty #Portfolio
2 days ago
Zillow Group (NASDAQ:Z) delivered a second quarter that beat its own outlook on nearly every line, then turned around and eliminated jobs and reshuffled its leadership team. On the call held August 5, CEO Jeremy Wacksman and newly expanded COO and CFO Jeremy Hofmann laid out a business growing far faster than the housing market around it, alongside a restructuring meant to fund that growth. The two stories sitting side by side are worth pulling apart.
Q2 revenue rose 18% year-over-year to $772 million, ahead of the high end of guidance, while EBITDA hit $176 million for a 23% margin. For Sale revenue climbed 14% to $549 million even though the purchase mortgage market was flat, and mortgages revenue jumped 75% to $84 million as purchase loan origination volume nearly doubled. Rentals revenue grew 31% to $209 million, powered by 42% growth in multifamily and a record 79,000 multifamily properties on the platform, up 23% from a year earlier.
Management is also leaning into AI Mode, now live for about 20% of signed-in users, where engaged consumers spend more than three times as long on the site and contact an agent at nearly three times the rate of everyone else. Zillow Home Loans has become a top-25 purchase lender nationally, and the shift toward its "preferred" agent model generated 23% more revenue per connection in 2025, with management targeting 35% by the end of 2026. The company backed that confidence with $200 million in buybacks during the quarter and $826 million year-to-date.
The other side of the ledger is messier. A day before the call, Zillow eliminated roughly 7% of its workforce, booking $36 million in restructuring costs in the quarter with another $23 million to $28 million expected in the third quarter. Chief Operating Officer Jun Choo is stepping down to focus on his health, replaced in an expanded role by Hofmann. Despite the adjusted net income of $118 million, Zillow posted a GAAP net loss of $4 million.
Management also revised its view of the purchase mortgage market lower, now expecting originations down low to mid single digits rather than flat, citing rates that have risen since their lows earlier in the year. The accounting mechanics of the preferred transition are adding real drag too: residential revenue is expected to be flat in the third quarter and only in line with a shrinking mortgage industry in the fourth, as 600 to 800 basis points of revenue shifts from residential into mortgages and seasonality adds another 200 to 300 basis points of headwind in Q4.
#market
Q2 revenue rose 18% year-over-year to $772 million, ahead of the high end of guidance, while EBITDA hit $176 million for a 23% margin. For Sale revenue climbed 14% to $549 million even though the purchase mortgage market was flat, and mortgages revenue jumped 75% to $84 million as purchase loan origination volume nearly doubled. Rentals revenue grew 31% to $209 million, powered by 42% growth in multifamily and a record 79,000 multifamily properties on the platform, up 23% from a year earlier.
Management is also leaning into AI Mode, now live for about 20% of signed-in users, where engaged consumers spend more than three times as long on the site and contact an agent at nearly three times the rate of everyone else. Zillow Home Loans has become a top-25 purchase lender nationally, and the shift toward its "preferred" agent model generated 23% more revenue per connection in 2025, with management targeting 35% by the end of 2026. The company backed that confidence with $200 million in buybacks during the quarter and $826 million year-to-date.
The other side of the ledger is messier. A day before the call, Zillow eliminated roughly 7% of its workforce, booking $36 million in restructuring costs in the quarter with another $23 million to $28 million expected in the third quarter. Chief Operating Officer Jun Choo is stepping down to focus on his health, replaced in an expanded role by Hofmann. Despite the adjusted net income of $118 million, Zillow posted a GAAP net loss of $4 million.
Management also revised its view of the purchase mortgage market lower, now expecting originations down low to mid single digits rather than flat, citing rates that have risen since their lows earlier in the year. The accounting mechanics of the preferred transition are adding real drag too: residential revenue is expected to be flat in the third quarter and only in line with a shrinking mortgage industry in the fourth, as 600 to 800 basis points of revenue shifts from residential into mortgages and seasonality adds another 200 to 300 basis points of headwind in Q4.
#market
2 days ago
Ben Reitzes raised his SNDK price target to $3,600, arguing SanDisk could return $100 billion to shareholders via buybacks over three years.
SanDisk's 8 hyperscaler contracts guarantee $93.9 billion in minimum revenue over 4-plus years, signaling memory is shedding its commodity discount.
With $11.5 billion in fiscal 2026 free cash flow and $15.5 billion in buyback authorization, SanDisk's $100 billion repurchase math is credible.
Act now: the ******* yst who called NVIDIA in 2010 just named his top 10 AI stocks — and SanDisk didn't make the cut. Grab the names FREE today.
Memory has historically been the worst business in the semiconductor industry. Brutal cycles, no pricing power, capacity built at exactly the wrong moment. So when Melius Research's head of technology tells CNBC that a memory company can hand back roughly its entire pre-2026 market cap in buybacks over three years, the reflex is skepticism. The claim deserves better than a reflex.
#billion #buybacks #three
SanDisk's 8 hyperscaler contracts guarantee $93.9 billion in minimum revenue over 4-plus years, signaling memory is shedding its commodity discount.
With $11.5 billion in fiscal 2026 free cash flow and $15.5 billion in buyback authorization, SanDisk's $100 billion repurchase math is credible.
Act now: the ******* yst who called NVIDIA in 2010 just named his top 10 AI stocks — and SanDisk didn't make the cut. Grab the names FREE today.
Memory has historically been the worst business in the semiconductor industry. Brutal cycles, no pricing power, capacity built at exactly the wrong moment. So when Melius Research's head of technology tells CNBC that a memory company can hand back roughly its entire pre-2026 market cap in buybacks over three years, the reflex is skepticism. The claim deserves better than a reflex.
#billion #buybacks #three
5 days ago
ExxonMobil (NYSE:XOM) reported second-quarter 2026 results on July 31, and the headline number disappointed. Adjusted earnings came in at $3.52 per share, short of the $3.60 ***** ysts expected, even though that figure was up sharply from a year earlier. Reported earnings were $14.5 billion, or $3.48 per share. But the company also generated $23.6 billion in cash from operations and $17.2 billion in free cash flow, enough to fund $9.4 billion in shareholder distributions with room to spare. The miss made headlines. The cash didn't miss anything.
Exxon's operating results told a different story than the earnings line. The company posted its highest upstream production in more than two decades, excluding disruptions in the Middle East, and Permian output topped 1.8 million oil-equivalent barrels per day, a record pace consistent with its planned 9% annual growth rate through 2030. A fifth Guyana production vessel set sail during the quarter, with startup on track for the fourth quarter of 2026 and 250,000 barrels per day of new capacity coming online. Diesel production also hit a second-quarter record. None of that shows up directly in a per-share earnings number, but it is the foundation the company is building future cash flow on.
Cost discipline reinforced the picture. Exxon has now banked $16.3 billion in ***** ulative structural cost savings since 2019, including $1.2 billion added in the first half of 2026 alone, a total the company says exceeds what BP, Chevron, Shell, and TotalEnergies have saved combined. It kept investing anyway, spending $13.0 billion in cash capital expenditures through midyear, about 20% more than its nearest rival. Growing production while cutting costs is the combination that funds a rising dividend.
The earnings miss wasn't the only soft spot. The first quarter of 2026 generated just $2.7 billion in free cash flow against $9.2 billion in shareholder distributions, forcing Exxon to lean on its balance sheet, with debt-to-capital reaching 15.4% at the time. Zoom out to the full first half and the math is tighter than the strong second quarter suggests: $19.9 billion in free cash flow covered $18.6 billion in distributions, leaving only about $1.3 billion of cushion. The company reduced debt by $7 billion in the second quarter and brought net debt-to-capital down to 11%, but the episode is a reminder that commodity earnings swing hard from quarter to quarter, and the roughly $37 billion a year Exxon is committing to dividends and buybacks needs strong quarters to keep showing up.
#quarter #cash
Exxon's operating results told a different story than the earnings line. The company posted its highest upstream production in more than two decades, excluding disruptions in the Middle East, and Permian output topped 1.8 million oil-equivalent barrels per day, a record pace consistent with its planned 9% annual growth rate through 2030. A fifth Guyana production vessel set sail during the quarter, with startup on track for the fourth quarter of 2026 and 250,000 barrels per day of new capacity coming online. Diesel production also hit a second-quarter record. None of that shows up directly in a per-share earnings number, but it is the foundation the company is building future cash flow on.
Cost discipline reinforced the picture. Exxon has now banked $16.3 billion in ***** ulative structural cost savings since 2019, including $1.2 billion added in the first half of 2026 alone, a total the company says exceeds what BP, Chevron, Shell, and TotalEnergies have saved combined. It kept investing anyway, spending $13.0 billion in cash capital expenditures through midyear, about 20% more than its nearest rival. Growing production while cutting costs is the combination that funds a rising dividend.
The earnings miss wasn't the only soft spot. The first quarter of 2026 generated just $2.7 billion in free cash flow against $9.2 billion in shareholder distributions, forcing Exxon to lean on its balance sheet, with debt-to-capital reaching 15.4% at the time. Zoom out to the full first half and the math is tighter than the strong second quarter suggests: $19.9 billion in free cash flow covered $18.6 billion in distributions, leaving only about $1.3 billion of cushion. The company reduced debt by $7 billion in the second quarter and brought net debt-to-capital down to 11%, but the episode is a reminder that commodity earnings swing hard from quarter to quarter, and the roughly $37 billion a year Exxon is committing to dividends and buybacks needs strong quarters to keep showing up.
#quarter #cash
7 days ago
Abel snapped Berkshire's 14-quarter net-selling streak by deploying $20 billion more into equities than he sold and ramping buybacks to $4.5 billion in Q2 2026.
Alphabet surged 224% in Berkshire's portfolio in a single quarter to claim the 5th-largest spot, anchored by a $10 billion AI infrastructure investment.
Apple's portfolio share collapsed from over 50% at its peak to just 20%, while Bank of America was trimmed nearly in half since mid-2024.
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The stock market in 2026 has rewarded patience less than usual. The S&P 500 is up 13% on the year, and momentum names have led the charge while cash-heavy value investors sat on the sidelines wondering when the next fat pitch would arrive.
#quarter #abel #alphabet
Alphabet surged 224% in Berkshire's portfolio in a single quarter to claim the 5th-largest spot, anchored by a $10 billion AI infrastructure investment.
Apple's portfolio share collapsed from over 50% at its peak to just 20%, while Bank of America was trimmed nearly in half since mid-2024.
It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor)
The stock market in 2026 has rewarded patience less than usual. The S&P 500 is up 13% on the year, and momentum names have led the charge while cash-heavy value investors sat on the sidelines wondering when the next fat pitch would arrive.
#quarter #abel #alphabet
7 days ago
Procter & Gamble (NYSE:PG) is buying its way into wellness. On August 4, L Catterton announced it had signed a definitive agreement to sell Thorne, a science-backed health and wellness brand, to Procter & Gamble for $3.8 billion in cash. The deal lands a day after an August 3 ****** ysis flagged a fiscal 2027 earnings guide that came in below expectations, weighed down by roughly $1 billion in new cost headwinds. Investors now have two stories to weigh at once: fresh expansion and a tougher near-term cost picture.
The Thorne acquisition gives Procter & Gamble entry into a category built on clinical credibility rather than shelf ****** e. Thorne has spent 40 years building relationships with healthcare practitioners, and L Catterton's announcement noted the company developed a proprietary AI wellness advisor to help consumers navigate its supplement lineup, a tool practitioners can point their patients to directly.
The transaction is expected to close in the fourth quarter of 2026, an all-cash deal with no debt or equity swapped into the mix. Procter & Gamble isn't skimping on shareholders while it shops, either. The company returned $10.2 billion in dividends and $5.0 billion in share repurchases during fiscal 2026, and it plans roughly the same combination, about $10 billion in dividends and $5 billion in buybacks, for fiscal 2027. There's a case buried inside the company's own guidance, too. Strip out the roughly $1 billion in commodity, energy, and transportation costs management expects to absorb next year, and core EPS would be growing at about 10% instead of the 0% to 3% baked into the outlook.
The numbers behind the fiscal 2027 outlook explain the caution. Management guided core EPS to $6.89 to $7.11, implying growth of just 0% to 3%, and pointed to roughly $1 billion in after-tax commodity, energy, and transportation costs as the main culprit. Add higher net interest expense, lower non-operating income, and unfavorable currency, and the total drag reaches $0.56 per share, wiping out about 8 percentage points of core earnings growth before the year even starts.
The trend already shows up in recent results. In the fiscal fourth quarter, net sales rose 2% year-over-year to $21.2 billion while organic sales were flat, and core EPS fell 3% to $1.43. For the full fiscal year, net sales grew 3% to $87.0 billion, but organic sales rose only 1%, and every bit of that growth came from higher prices rather than more units sold. Volume and mix didn't move. Shares trade near $144, about 5% above their 52-week low of $137.62, or roughly 21 times fiscal 2026 core earnings of $6.89. That's not an expensive multiple, but it isn't cheap for a business guiding to low-single-digit growth.
#gamble #thorne
The Thorne acquisition gives Procter & Gamble entry into a category built on clinical credibility rather than shelf ****** e. Thorne has spent 40 years building relationships with healthcare practitioners, and L Catterton's announcement noted the company developed a proprietary AI wellness advisor to help consumers navigate its supplement lineup, a tool practitioners can point their patients to directly.
The transaction is expected to close in the fourth quarter of 2026, an all-cash deal with no debt or equity swapped into the mix. Procter & Gamble isn't skimping on shareholders while it shops, either. The company returned $10.2 billion in dividends and $5.0 billion in share repurchases during fiscal 2026, and it plans roughly the same combination, about $10 billion in dividends and $5 billion in buybacks, for fiscal 2027. There's a case buried inside the company's own guidance, too. Strip out the roughly $1 billion in commodity, energy, and transportation costs management expects to absorb next year, and core EPS would be growing at about 10% instead of the 0% to 3% baked into the outlook.
The numbers behind the fiscal 2027 outlook explain the caution. Management guided core EPS to $6.89 to $7.11, implying growth of just 0% to 3%, and pointed to roughly $1 billion in after-tax commodity, energy, and transportation costs as the main culprit. Add higher net interest expense, lower non-operating income, and unfavorable currency, and the total drag reaches $0.56 per share, wiping out about 8 percentage points of core earnings growth before the year even starts.
The trend already shows up in recent results. In the fiscal fourth quarter, net sales rose 2% year-over-year to $21.2 billion while organic sales were flat, and core EPS fell 3% to $1.43. For the full fiscal year, net sales grew 3% to $87.0 billion, but organic sales rose only 1%, and every bit of that growth came from higher prices rather than more units sold. Volume and mix didn't move. Shares trade near $144, about 5% above their 52-week low of $137.62, or roughly 21 times fiscal 2026 core earnings of $6.89. That's not an expensive multiple, but it isn't cheap for a business guiding to low-single-digit growth.
#gamble #thorne
7 days ago
Berkshire Hathaway reported better-than-expected earnings while the conglomerate, no longer run by Warren Buffett, announced a big increase in share buybacks and a significant decline in its cash ******* d. The stock is in a buy zone.
Berkshire Hathaway (BRKB) reported Q2 operating earnings of $12.98 billion, up 16% vs. a year earlier. Revenue climbed 10% to $101.8 billion. Both beat views.
Manufacturing, service and retailing units and Berkshire Hathaway Energy were strong performers, offsetting insurance weakness.
Berkshire bought back $4.5 billion of its own stock, up from $235 million in Q1. Various filings indicate that buybacks continued in July.
Berkshire also bought $19.8 billion net in equities, ending a 14-quarter decline in net stock purchases. The company sold $8.1 billion worth in Q1.
#hathaway #decline #bought
Berkshire Hathaway (BRKB) reported Q2 operating earnings of $12.98 billion, up 16% vs. a year earlier. Revenue climbed 10% to $101.8 billion. Both beat views.
Manufacturing, service and retailing units and Berkshire Hathaway Energy were strong performers, offsetting insurance weakness.
Berkshire bought back $4.5 billion of its own stock, up from $235 million in Q1. Various filings indicate that buybacks continued in July.
Berkshire also bought $19.8 billion net in equities, ending a 14-quarter decline in net stock purchases. The company sold $8.1 billion worth in Q1.
#hathaway #decline #bought
8 days ago
The digital payments giant sent a fortune back to its owners, yet the stock fell far behind the market. Here is the accounting of what that cash really bought.
PayPal (PYPL) operates the digital wallet and payment network millions use for everything from online shopping to splitting a dinner bill. But while its service is familiar, its stock, trading around $59.78, has been a source of frustration, sitting about 34% below its two-year high. Against that backdrop, the company has executed one of the largest capital returns in the market. Over the last five years, it handed back nearly $26 billion to shareholders, a figure equal to 51% of its entire current value. The company paid owners a fortune while the stock lagged; was holding worth it, and is it now?
A $26 Billion Payout Fueled Almost Entirely by Buybacks
The cash return machine is powered by the fees PayPal collects on its large payment volume, generating a free cash flow yield of 12.6%. The company then directs that cash back to its owners. The method, however, has been overwhelmingly one-sided. Of the total returned over five years, a huge $26 billion came from share repurchases, with just $252 million paid out as dividends.
This buyback-heavy strategy is designed to shrink the share count and boost earnings per share. It is a vote of confidence from management, using company cash to buy its own stock. But for the individual investor, the real measure is total return, which accounts for both price movement and dividends.
#back #fortune
PayPal (PYPL) operates the digital wallet and payment network millions use for everything from online shopping to splitting a dinner bill. But while its service is familiar, its stock, trading around $59.78, has been a source of frustration, sitting about 34% below its two-year high. Against that backdrop, the company has executed one of the largest capital returns in the market. Over the last five years, it handed back nearly $26 billion to shareholders, a figure equal to 51% of its entire current value. The company paid owners a fortune while the stock lagged; was holding worth it, and is it now?
A $26 Billion Payout Fueled Almost Entirely by Buybacks
The cash return machine is powered by the fees PayPal collects on its large payment volume, generating a free cash flow yield of 12.6%. The company then directs that cash back to its owners. The method, however, has been overwhelmingly one-sided. Of the total returned over five years, a huge $26 billion came from share repurchases, with just $252 million paid out as dividends.
This buyback-heavy strategy is designed to shrink the share count and boost earnings per share. It is a vote of confidence from management, using company cash to buy its own stock. But for the individual investor, the real measure is total return, which accounts for both price movement and dividends.
#back #fortune
8 days ago
HYPE has turned a $10,000 entry since its November 2024 launch into roughly $175,000 today, dwarfing XRP's $14,110 return since 2021.
XRP's $28 price target by 2030 could turn $10,000 into $271,800, but the Senate delayed the CLARITY Act vote until at least September.
HYPE generates fees from every trade that fund monthly buybacks, tying token growth to trading volume rather than legislative outcomes.
Two retirees, same $1 million, same 4% rule, buy one finished with $1.4 million, the other hit $0 in 12 years. Our free reader guide explains the flaw that separated them, and the income-first method built to avoid it.
A $10,000 investment in XRP on January 1 at $1.85 is now worth $5,568, marking a 44% decline over the last seven months. Over the same period, Hyperliquid performed better, turning a $10,000 investment at $25 into $22,400, which represents a 124% gain.
#same #hype #senate #january
XRP's $28 price target by 2030 could turn $10,000 into $271,800, but the Senate delayed the CLARITY Act vote until at least September.
HYPE generates fees from every trade that fund monthly buybacks, tying token growth to trading volume rather than legislative outcomes.
Two retirees, same $1 million, same 4% rule, buy one finished with $1.4 million, the other hit $0 in 12 years. Our free reader guide explains the flaw that separated them, and the income-first method built to avoid it.
A $10,000 investment in XRP on January 1 at $1.85 is now worth $5,568, marking a 44% decline over the last seven months. Over the same period, Hyperliquid performed better, turning a $10,000 investment at $25 into $22,400, which represents a 124% gain.
#same #hype #senate #january
8 days ago
Interested in Aflac Incorporated? Here are five stocks we like better.
Aflac reported solid Q2 results, with net earnings of $1.63 per diluted share and adjusted earnings of $1.75, while returning $1.3 billion to shareholders through buybacks and dividends.
Japan sales fell 5.6% year over year against a difficult comparison, but first-half sales rose 7% and new products helped attract younger customers. U.S. group insurance momentum also continued, with sales up 7.1% in key group businesses.
Aflac repositioned $4.8 billion of investments, expected to raise annualized net investment income by more than $50 million. The company maintained strong capital and liquidity, while lowering its 2026 U.S. premium-growth outlook to slightly below its prior 3%-6% range.
A Boring Dividend Growth Strategy Becomes a Solid Defensive Play
#earnings
Aflac reported solid Q2 results, with net earnings of $1.63 per diluted share and adjusted earnings of $1.75, while returning $1.3 billion to shareholders through buybacks and dividends.
Japan sales fell 5.6% year over year against a difficult comparison, but first-half sales rose 7% and new products helped attract younger customers. U.S. group insurance momentum also continued, with sales up 7.1% in key group businesses.
Aflac repositioned $4.8 billion of investments, expected to raise annualized net investment income by more than $50 million. The company maintained strong capital and liquidity, while lowering its 2026 U.S. premium-growth outlook to slightly below its prior 3%-6% range.
A Boring Dividend Growth Strategy Becomes a Solid Defensive Play
#earnings
8 days ago
Berkshire Hathaway reported better-than-expected earnings while the conglomerate, no longer run by Warren Buffett, announced a big increase in share buybacks and a significant decline in its cash **** d. The stock is in a buy zone.
Berkshire Hathaway (BRKB) reported Q2 operating earnings of $12.98 billion, up 16% vs. a year earlier. Revenue climbed 10% to $101.8 billion. Both beat views.
Manufacturing, service and retailing units and Berkshire Hathaway Energy were strong performers, offsetting insurance weakness.
Berkshire bought back $4.5 billion of its own stock, up from $235 million in Q1. Various filings indicate that buybacks continued in July.
Berkshire also bought $19.8 billion net in equities, ending a 14-quarter decline in net stock purchases. The company sold $8.1 billion worth in Q1.
#berkshire #hathaway
Berkshire Hathaway (BRKB) reported Q2 operating earnings of $12.98 billion, up 16% vs. a year earlier. Revenue climbed 10% to $101.8 billion. Both beat views.
Manufacturing, service and retailing units and Berkshire Hathaway Energy were strong performers, offsetting insurance weakness.
Berkshire bought back $4.5 billion of its own stock, up from $235 million in Q1. Various filings indicate that buybacks continued in July.
Berkshire also bought $19.8 billion net in equities, ending a 14-quarter decline in net stock purchases. The company sold $8.1 billion worth in Q1.
#berkshire #hathaway
11 days ago
Bitmine Immersion Technologies (NYSE: $BMNR) has accelerated its stock buybacks even as it continues making weekly purchases of Ethereum (CRYPTO: $ETH).
The company led by Chairman Tom Lee has increased its $4 billion U.S. share repurchase program, buying back 4.5 million BMNR shares over the past week.
Bitmine has now repurchased more than 15 million of its own shares since July 1, which it says is the largest common stock buyback completed by any cryptocurrency treasury company.
More From Cryptoprowl:
Ramp Network Brings Multichain Wallet and Rewards to EU
#shares
The company led by Chairman Tom Lee has increased its $4 billion U.S. share repurchase program, buying back 4.5 million BMNR shares over the past week.
Bitmine has now repurchased more than 15 million of its own shares since July 1, which it says is the largest common stock buyback completed by any cryptocurrency treasury company.
More From Cryptoprowl:
Ramp Network Brings Multichain Wallet and Rewards to EU
#shares
11 days ago
Interested in Keller Group plc? Here are five stocks we like better.
Keller delivered record first-half 2026 results, with constant-currency revenue up 11%, underlying operating profit up 17.1% and margins improving to 7.3%. Management remains confident of meeting its upgraded full-year expectations and achieving a fourth consecutive record year.
North America was the main growth engine, with revenue up 16.7% and operating profit up 17.7%, driven by data-center foundations and major infrastructure projects including the I-40 highway remediation. Data centers rose to 9% of group revenue, while weaker multifamily residential activity remained a headwind.
Cash generation supported a 57% increase in the interim dividend and ongoing share buybacks, while management expects to end the year with approximately £30 million of net cash. EMEA profit rose despite lower revenue, whereas APAC revenue grew strongly but profit was broadly flat due to pricing and weather pressures.
Keller Group (LON:KLR) reported record first-half results for 2026, with revenue and underlying operating profit rising as strong demand for data centers and infrastructure work in North America offset weaker conditions in some residential and European markets.
#revenue #record #operating #north
Keller delivered record first-half 2026 results, with constant-currency revenue up 11%, underlying operating profit up 17.1% and margins improving to 7.3%. Management remains confident of meeting its upgraded full-year expectations and achieving a fourth consecutive record year.
North America was the main growth engine, with revenue up 16.7% and operating profit up 17.7%, driven by data-center foundations and major infrastructure projects including the I-40 highway remediation. Data centers rose to 9% of group revenue, while weaker multifamily residential activity remained a headwind.
Cash generation supported a 57% increase in the interim dividend and ongoing share buybacks, while management expects to end the year with approximately £30 million of net cash. EMEA profit rose despite lower revenue, whereas APAC revenue grew strongly but profit was broadly flat due to pricing and weather pressures.
Keller Group (LON:KLR) reported record first-half results for 2026, with revenue and underlying operating profit rising as strong demand for data centers and infrastructure work in North America offset weaker conditions in some residential and European markets.
#revenue #record #operating #north
12 days ago
The pharmaceutical giant sent shareholders a fortune in cash, yet the stock itself fell far behind the market. Here is the honest accounting of what owners actually got.
For an income investor holding Pfizer (PFE) stock, which trades around $25 a share, the last five years have posed a sharp question. The company returned an extraordinary $49 billion to shareholders through dividends and buybacks. That figure, equal to 34% of its current market value, is a gusher of cash by any standard. But over that same period, the stock's total return was -21%, while the S&P 500 delivered an +81% gain. The paradox is the whole story: the company showered owners with cash while the stock lagged. Was holding worth it, and is it now?
The machine behind the payout is a large pharmaceuticals business with $63.31 billion in revenue over the last twelve months. Its operating margin of 25% runs well ahead of the 18.4% median for the S&P 500, generating the substantial free cash flow needed to fund shareholder returns. Of the $49 billion returned over five years, the vast majority, $47 billion, came from dividends, with a smaller $2.0 billion spent on share repurchases.
This dividend focus is a core part of the company's stated strategy. Management recently affirmed its commitment, stating on its latest earnings call, "We intend to maintain and over time, grow our dividend as we continue to de-lever and build long-term value." For shareholders, this has meant a steady stream of checks from a business built for scale.
While the checks were generous, the total return figure tells a sobering story. The -21% return already includes reinvested dividends; the stock's price performance was significantly worse. The market has been pricing the stock not on its past cash generation, but on its future challenges. The honest catch is the looming patent cliff, what the industry calls loss of exclusivity (LOE). Management recently sized this headwind at "$14 billion to $15 billion" in annual revenue at risk.
#billion #cash #behind
For an income investor holding Pfizer (PFE) stock, which trades around $25 a share, the last five years have posed a sharp question. The company returned an extraordinary $49 billion to shareholders through dividends and buybacks. That figure, equal to 34% of its current market value, is a gusher of cash by any standard. But over that same period, the stock's total return was -21%, while the S&P 500 delivered an +81% gain. The paradox is the whole story: the company showered owners with cash while the stock lagged. Was holding worth it, and is it now?
The machine behind the payout is a large pharmaceuticals business with $63.31 billion in revenue over the last twelve months. Its operating margin of 25% runs well ahead of the 18.4% median for the S&P 500, generating the substantial free cash flow needed to fund shareholder returns. Of the $49 billion returned over five years, the vast majority, $47 billion, came from dividends, with a smaller $2.0 billion spent on share repurchases.
This dividend focus is a core part of the company's stated strategy. Management recently affirmed its commitment, stating on its latest earnings call, "We intend to maintain and over time, grow our dividend as we continue to de-lever and build long-term value." For shareholders, this has meant a steady stream of checks from a business built for scale.
While the checks were generous, the total return figure tells a sobering story. The -21% return already includes reinvested dividends; the stock's price performance was significantly worse. The market has been pricing the stock not on its past cash generation, but on its future challenges. The honest catch is the looming patent cliff, what the industry calls loss of exclusivity (LOE). Management recently sized this headwind at "$14 billion to $15 billion" in annual revenue at risk.
#billion #cash #behind
16 days ago
Wood Mackenzie now estimates that the global upstream oil and gas sector could generate $495 billion in free cash flow in 2026 if crude averages $90 per barrel, more than doubling its previous forecast based on a $60 oil price **** umption. The revision follows the sharp jump in crude prices triggered by the Middle East conflict, turning what had been expected to be another year of disciplined cash generation into one of the industry's most lucrative windfalls in recent years. Yet the gains will be concentrated among the world's largest producers, with the 49 national and international oil companies covered by Wood Mackenzie expected to capture $272 billion of the total.
Wood Mackenzie expects the conflict to reduce global oil production by at least 3%, with Iraq accounting for roughly 3 million barrels per day of lost output, while damage to infrastructure in Qatar is projected to cut global LNG supply by 2%. The stronger cash flow outlook does not alter the industry's longer-term production trajectory. Wood Mackenzie projects average production across the 155 upstream companies it tracks will fall 30% between 2030 and 2040, with more than 70 producers facing declines of more than 50% unless they make significant new investments.
However, WoodMac says energy companies are likely to maintain capital discipline despite the unexpected influx of cash, with capex budgets expected to largely remain flat while share buybacks are projected to decrease by 5% as boards prioritize balance sheet strength and deleveraging.
Related: War Sends Saudi Oil Output Down and Revenue Up
Meanwhile, energy companies are expected to continue to deploy the excess cash to purchase attractive oil and gas **** ets. Upstream M&A surged to a two-year high in the first half of the year, including Shell Plc's (NYSE:SHEL) $16 billion acquisition of ARC Resources, Devon's (NYSE:DVN) $25 billion merger with Coterra and Mitsubishi's (OTCPK:MSBHF) $7.5 billion purchase of Aethon. Dealmakers are increasingly prioritizing stable, low-cost regions and natural gas/LNG **** ets to ensure supply chain security.
#wood #mackenzie
Wood Mackenzie expects the conflict to reduce global oil production by at least 3%, with Iraq accounting for roughly 3 million barrels per day of lost output, while damage to infrastructure in Qatar is projected to cut global LNG supply by 2%. The stronger cash flow outlook does not alter the industry's longer-term production trajectory. Wood Mackenzie projects average production across the 155 upstream companies it tracks will fall 30% between 2030 and 2040, with more than 70 producers facing declines of more than 50% unless they make significant new investments.
However, WoodMac says energy companies are likely to maintain capital discipline despite the unexpected influx of cash, with capex budgets expected to largely remain flat while share buybacks are projected to decrease by 5% as boards prioritize balance sheet strength and deleveraging.
Related: War Sends Saudi Oil Output Down and Revenue Up
Meanwhile, energy companies are expected to continue to deploy the excess cash to purchase attractive oil and gas **** ets. Upstream M&A surged to a two-year high in the first half of the year, including Shell Plc's (NYSE:SHEL) $16 billion acquisition of ARC Resources, Devon's (NYSE:DVN) $25 billion merger with Coterra and Mitsubishi's (OTCPK:MSBHF) $7.5 billion purchase of Aethon. Dealmakers are increasingly prioritizing stable, low-cost regions and natural gas/LNG **** ets to ensure supply chain security.
#wood #mackenzie
16 days ago
Our ***** ysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.
Shell reported adjusted second-quarter earnings of $9.84 billion, more than double last year's level and ahead of ***** yst expectations. Higher oil and gas prices, strong trading and healthy refining margins helped deliver the company's best quarterly profit since the 2022 energy shock after Russia's invasion of Ukraine.
Shell also kept buybacks at $3 billion for the next quarter. The message was simple: geopolitical chaos is bad for the world, but very good for integrated oil giants.
Shell posted adjusted earnings of $9.84 billion for the April-to-June quarter.
That beat ***** yst expectations of about $8.8 billion and was up from $4.26 billion a year earlier. It also improved sharply from $6.92 billion in the first quarter.
#shell #quarter #next #tell
Shell reported adjusted second-quarter earnings of $9.84 billion, more than double last year's level and ahead of ***** yst expectations. Higher oil and gas prices, strong trading and healthy refining margins helped deliver the company's best quarterly profit since the 2022 energy shock after Russia's invasion of Ukraine.
Shell also kept buybacks at $3 billion for the next quarter. The message was simple: geopolitical chaos is bad for the world, but very good for integrated oil giants.
Shell posted adjusted earnings of $9.84 billion for the April-to-June quarter.
That beat ***** yst expectations of about $8.8 billion and was up from $4.26 billion a year earlier. It also improved sharply from $6.92 billion in the first quarter.
#shell #quarter #next #tell
17 days ago
Verizon Communications (NYSE:VZ) jumped recently after posting earnings. Profit beat estimates and rose year over year, but revenue missed estimates.
The stock still trades at a discount to peers, under 9.5 times forward earnings versus roughly 13x for the group. The question is whether that discount is a gift or a warning sign.
Verizon just posted a strong quarter for postpaid phone net additions in five years, beating ****** yst expectations by a wide margin. Broadband adds stayed strong across fixed wireless and fiber. Adjusted EBITDA hit a record, up 7.2%, pushing margins to an all-time high above 40%.
Management raised full-year guidance for the second straight quarter. EPS growth is now guided to 6-7%, and free cash flow growth guidance got ****** ped to 9-10% from 7% previously. That's a meaningful acceleration from the low single-digit free cash flow growth Verizon posted the last few years.
The dividend looks safe. Free cash flow payout ratio sits under half of what the company generates, and the roughly 6% yield comes with a multi-year streak of annual hikes. Buybacks add another layer of shareholder return: the company is already ahead of pace for the year, and management just raised the full-year target further.
#discount
The stock still trades at a discount to peers, under 9.5 times forward earnings versus roughly 13x for the group. The question is whether that discount is a gift or a warning sign.
Verizon just posted a strong quarter for postpaid phone net additions in five years, beating ****** yst expectations by a wide margin. Broadband adds stayed strong across fixed wireless and fiber. Adjusted EBITDA hit a record, up 7.2%, pushing margins to an all-time high above 40%.
Management raised full-year guidance for the second straight quarter. EPS growth is now guided to 6-7%, and free cash flow growth guidance got ****** ped to 9-10% from 7% previously. That's a meaningful acceleration from the low single-digit free cash flow growth Verizon posted the last few years.
The dividend looks safe. Free cash flow payout ratio sits under half of what the company generates, and the roughly 6% yield comes with a multi-year streak of annual hikes. Buybacks add another layer of shareholder return: the company is already ahead of pace for the year, and management just raised the full-year target further.
#discount
17 days ago
Regional banks have spent 2026 rebuilding the credibility they lost in 2023, when panicked customers withdrew large sums of money. The Federal Reserve's interest rate cuts have eased the funding costs, and loan growth is picking up again across the Southeast and Mid-South regions. First Horizon Corporation (NYSE:FHN), the Memphis-based lender, which benefits directly from this regional banking recovery, just got a very public nudge from Jim Cramer – the Mad Money host. In the lightning round on July 27, Jim endorsed First Horizon, calling it "a terrific stock, very inexpensive".
I think it's a terrific stock, very inexpensive. I think you should buy it.
Cramer's call on the stock comes two weeks after First Horizon released its second quarter results. The print indicated net income of $260 million, up 12% year-over-year, and EPS of $0.54, beating the $0.53 consensus by a penny. Adjusted EPS saw a 20% year-over-year growth. The company's revenue was in line with the estimates, reaching $887 million. Aside from financial growth indicators, the underlying trends also showed improved performance. Loans saw a growth of roughly $2 billion year-over-year while deposits went up by $1.6 billion sequentially, and the bank's return on equity climbed over 15%.
Even amid these numbers, Cramer's framing does not accurately capture the true position of First Horizon. The company trades at 1.77 times tangible book value, 10% above its own 10-year average. Shares are up 13.14% over the past year and sit near $25.40 currently. These numbers do not reflect a discounted regional bank. They represent a bank that the market has already pushed toward the top of its peer group. In other words, Cramer's "buy" is not a bargain call, but a bet that strong profits justify a premium price.
Higher deposit costs resulted in a slight slippage in net interest margins, while overall expenses grew alongside loan growth. Nevertheless, credit quality stayed resilient, showing only modest increases in loan losses. The company also engaged in aggressive stock buybacks, shrinking the total share count by nearly 7% over the past year, which ended up lifting the earnings per share. Short float of 2.73% down from 3.50% the previous month, indicates that bearish market traders are exiting their negative positions.
#regional #money #interest
I think it's a terrific stock, very inexpensive. I think you should buy it.
Cramer's call on the stock comes two weeks after First Horizon released its second quarter results. The print indicated net income of $260 million, up 12% year-over-year, and EPS of $0.54, beating the $0.53 consensus by a penny. Adjusted EPS saw a 20% year-over-year growth. The company's revenue was in line with the estimates, reaching $887 million. Aside from financial growth indicators, the underlying trends also showed improved performance. Loans saw a growth of roughly $2 billion year-over-year while deposits went up by $1.6 billion sequentially, and the bank's return on equity climbed over 15%.
Even amid these numbers, Cramer's framing does not accurately capture the true position of First Horizon. The company trades at 1.77 times tangible book value, 10% above its own 10-year average. Shares are up 13.14% over the past year and sit near $25.40 currently. These numbers do not reflect a discounted regional bank. They represent a bank that the market has already pushed toward the top of its peer group. In other words, Cramer's "buy" is not a bargain call, but a bet that strong profits justify a premium price.
Higher deposit costs resulted in a slight slippage in net interest margins, while overall expenses grew alongside loan growth. Nevertheless, credit quality stayed resilient, showing only modest increases in loan losses. The company also engaged in aggressive stock buybacks, shrinking the total share count by nearly 7% over the past year, which ended up lifting the earnings per share. Short float of 2.73% down from 3.50% the previous month, indicates that bearish market traders are exiting their negative positions.
#regional #money #interest
17 days ago
Harris Oakmark recently released its second-quarter 2026 investor letter for the "Oakmark U.S. Concentrated Strategy". A copy of the letter can be downloaded here. The strategy returned 9.21% (net) in the second quarter, lagging the Russell 1000 Value Index's 13.87%. U.S. equities finished higher during the quarter, with nine of eleven GICS sectors posting gains, led by technology and industrials, while energy and utilities detracted. The market showed concentrated leadership, with investors favoring companies that benefit from AI spending. However, the firm continues to focus on value discipline, avoiding AI-driven market fads, prioritizing companies trading below intrinsic value. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Oakmark U.S. Concentrated Strategy highlighted ICON Public Limited Company (NASDAQ:ICLR). ICON Public Limited Company (NASDAQ:ICLR) is a clinical research organization that provides outsourced development and commercialization services to the pharmaceutical, biotechnology, and medical device industries. On July 28, 2026, ICON Public Limited Company (NASDAQ:ICLR) stock closed at $180.24 per share. One-month return of ICON Public Limited Company (NASDAQ:ICLR) was 2.96%, and its shares lost 0.69% over the past 52 weeks. ICON Public Limited Company (NASDAQ:ICLR) has a market capitalization of about $13.91 billion.
Oakmark U.S. Concentrated Strategy stated the following regarding ICON Public Limited Company (NASDAQ:ICLR) in its Q2 2026 investor update:
"ICON Public Limited Company (NASDAQ:ICLR) was a contributor during the quarter. The Ireland-headquartered and U.S.-listed clinical research organization reported two sets of results as it caught up following its accounting re view, both in line with expectations against an improving pharma backdrop. Bookings were the standout, with a strong net book-to-bill and sharply lower cancellations than a year ago, led by full-service outsourcing. Given the business's long-cycle nature, this should support accelerating revenue growth in coming years if sustained. Margins met guidance, and management is confident in further gains from steps al ready underway. With the accounting clean-up behind it, ICON plans to resume buybacks, its top capital priority, after next quarter's earnings. We continue to see ICON as the leading pure play in an attractive industry with a long runway for future growth."
ICON Public Limited Company (NASDAQ:ICLR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 49 hedge fund portfolios held ICON Public Limited Company (NASDAQ:ICLR) at the end of the first quarter, up from 41 in the previous quarter. While we acknowledge the risk and potential of ICON Public Limited Company (NASDAQ:ICLR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within
In its Q2 2026 investor letter, Oakmark U.S. Concentrated Strategy highlighted ICON Public Limited Company (NASDAQ:ICLR). ICON Public Limited Company (NASDAQ:ICLR) is a clinical research organization that provides outsourced development and commercialization services to the pharmaceutical, biotechnology, and medical device industries. On July 28, 2026, ICON Public Limited Company (NASDAQ:ICLR) stock closed at $180.24 per share. One-month return of ICON Public Limited Company (NASDAQ:ICLR) was 2.96%, and its shares lost 0.69% over the past 52 weeks. ICON Public Limited Company (NASDAQ:ICLR) has a market capitalization of about $13.91 billion.
Oakmark U.S. Concentrated Strategy stated the following regarding ICON Public Limited Company (NASDAQ:ICLR) in its Q2 2026 investor update:
"ICON Public Limited Company (NASDAQ:ICLR) was a contributor during the quarter. The Ireland-headquartered and U.S.-listed clinical research organization reported two sets of results as it caught up following its accounting re view, both in line with expectations against an improving pharma backdrop. Bookings were the standout, with a strong net book-to-bill and sharply lower cancellations than a year ago, led by full-service outsourcing. Given the business's long-cycle nature, this should support accelerating revenue growth in coming years if sustained. Margins met guidance, and management is confident in further gains from steps al ready underway. With the accounting clean-up behind it, ICON plans to resume buybacks, its top capital priority, after next quarter's earnings. We continue to see ICON as the leading pure play in an attractive industry with a long runway for future growth."
ICON Public Limited Company (NASDAQ:ICLR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 49 hedge fund portfolios held ICON Public Limited Company (NASDAQ:ICLR) at the end of the first quarter, up from 41 in the previous quarter. While we acknowledge the risk and potential of ICON Public Limited Company (NASDAQ:ICLR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within
17 days ago
Eni raised its 2026 oil and gas production outlook and expanded its share buyback program after reporting significantly stronger second-quarter results, supported by double-digit production growth, higher commodity prices and improved performance across several business segments.
The Italian energy company now expects underlying full-year hydrocarbon production growth of around 5%, up from its previous guidance of 3% to 4%, following 11% year-over-year underlying production growth in the second quarter to 1.79 million barrels of oil equivalent per day, excluding price effects.
The improved outlook prompted Eni to increase its planned 2026 share repurchase program to €3.4 billion, up from the previously revised €2.8 billion, while reaffirming its planned dividend of €1.10 per share. The company also said an extraordinary dividend could be considered later this year if refining margins remain well above budget ****** umptions.
Second-quarter adjusted EBIT more than doubled year over year to €5.38 billion, while adjusted net profit rose to €2.3 billion. The upstream business generated €4.77 billion in adjusted EBIT, benefiting from higher production, favorable oil realizations and continued cost discipline. Cash flow before working capital reached €4.47 billion, comfortably covering €1.84 billion in capital spending and €1.35 billion returned to shareholders through dividends and buybacks during the quarter.
Strategically, Eni continued expanding its upstream portfolio and transition businesses. During the quarter it established the Searah joint venture with Petronas, creating a regional platform spanning Indonesia and Malaysia that will develop major gas discoveries in the Kutei Basin. The company also approved final investment decisions for the Baleine Phase 3 development offshore Côte d'Ivoire, the Greater PAJ project offshore Angola, and the Cronos gas project offshore Cyprus.
#production #second
The Italian energy company now expects underlying full-year hydrocarbon production growth of around 5%, up from its previous guidance of 3% to 4%, following 11% year-over-year underlying production growth in the second quarter to 1.79 million barrels of oil equivalent per day, excluding price effects.
The improved outlook prompted Eni to increase its planned 2026 share repurchase program to €3.4 billion, up from the previously revised €2.8 billion, while reaffirming its planned dividend of €1.10 per share. The company also said an extraordinary dividend could be considered later this year if refining margins remain well above budget ****** umptions.
Second-quarter adjusted EBIT more than doubled year over year to €5.38 billion, while adjusted net profit rose to €2.3 billion. The upstream business generated €4.77 billion in adjusted EBIT, benefiting from higher production, favorable oil realizations and continued cost discipline. Cash flow before working capital reached €4.47 billion, comfortably covering €1.84 billion in capital spending and €1.35 billion returned to shareholders through dividends and buybacks during the quarter.
Strategically, Eni continued expanding its upstream portfolio and transition businesses. During the quarter it established the Searah joint venture with Petronas, creating a regional platform spanning Indonesia and Malaysia that will develop major gas discoveries in the Kutei Basin. The company also approved final investment decisions for the Baleine Phase 3 development offshore Côte d'Ivoire, the Greater PAJ project offshore Angola, and the Cronos gas project offshore Cyprus.
#production #second
23 days ago
Interested in Ladder Capital Corp? Here are five stocks we like better.
Ladder Capital reported distributable earnings of $30.8 million, or $0.24 per share, in Q2 2026, while management said the stock still trades at a meaningful discount to book value. The company's dividend yield was highlighted as above 9%.
The firm is continuing to rotate capital into higher-yielding balance sheet loans, with more than $800 million of new investments in the quarter and $1.2 billion of loans originated year to date. Management said the loan portfolio grew 75% over the past 12 months and expects net portfolio growth to continue through year-end.
Ladder ended the quarter with $1.1 billion of liquidity and repurchased $8 million of stock at a 25% discount to book value, with $92 million still available under its buyback authorization. Book value per share was $13.44, and management said it remains focused on buybacks, balance-sheet strength and narrowing the valuation gap.
Ladder Corporation: Climbing Higher And Paying 9% Yield
#Stock
Ladder Capital reported distributable earnings of $30.8 million, or $0.24 per share, in Q2 2026, while management said the stock still trades at a meaningful discount to book value. The company's dividend yield was highlighted as above 9%.
The firm is continuing to rotate capital into higher-yielding balance sheet loans, with more than $800 million of new investments in the quarter and $1.2 billion of loans originated year to date. Management said the loan portfolio grew 75% over the past 12 months and expects net portfolio growth to continue through year-end.
Ladder ended the quarter with $1.1 billion of liquidity and repurchased $8 million of stock at a 25% discount to book value, with $92 million still available under its buyback authorization. Book value per share was $13.44, and management said it remains focused on buybacks, balance-sheet strength and narrowing the valuation gap.
Ladder Corporation: Climbing Higher And Paying 9% Yield
#Stock
23 days ago
Interested in Dime Community Bancshares, Inc.? Here are five stocks we like better.
Record Q2 results: Dime Community Bancshares posted record second-quarter revenue of $126 million, with core EPS up 23% year over year to $0.79. Net interest margin expanded to 3.28%, marking the bank's ninth straight quarter of margin growth.
Business lending is driving growth: Business loans grew 26% year over year, and management said the pipeline remains strong at about $1.4 billion. The bank expects low- to mid-single-digit loan growth in the second half while continuing to diversify away from multifamily exposure.
Credit, capital and buybacks: Credit trends were mixed but manageable, with nonperforming **** ets down 28% sequentially and the allowance to loans rising to 98 basis points. Capital levels improved, and management said it expects to resume share repurchases in the third quarter.
Time To Buy Regional Banks? Insider Buying Says Yes
#credit
Record Q2 results: Dime Community Bancshares posted record second-quarter revenue of $126 million, with core EPS up 23% year over year to $0.79. Net interest margin expanded to 3.28%, marking the bank's ninth straight quarter of margin growth.
Business lending is driving growth: Business loans grew 26% year over year, and management said the pipeline remains strong at about $1.4 billion. The bank expects low- to mid-single-digit loan growth in the second half while continuing to diversify away from multifamily exposure.
Credit, capital and buybacks: Credit trends were mixed but manageable, with nonperforming **** ets down 28% sequentially and the allowance to loans rising to 98 basis points. Capital levels improved, and management said it expects to resume share repurchases in the third quarter.
Time To Buy Regional Banks? Insider Buying Says Yes
#credit
25 days ago
The chipmaker sent shareholders a fortune in cash, yet the stock itself went nowhere fast. Here's what owners actually got for their patience and what the trade-off really cost them.
Qualcomm (QCOM)'s stock has seen better days, trading around $170.32 a share after a recent 25% pullback from its one-month high. But behind the stock chart's noise is a much simpler story: the company has been a quiet, large cash-return machine. Over the last five years, Qualcomm handed back $43 billion to its owners through dividends and buybacks, an amount equal to 24% of its entire current market value. The question for any investor is whether that cash was a reward for a great business or a consolation prize for a stock that dramatically lagged the market.
The company's cash machine is built on two very different engines.
That $43 billion gusher, which dwarfs the $5.7 billion returned by the median S&P 500 company over the same period, comes from a business with formidable profitability. Qualcomm's operating margin over the last twelve months was 26%, well above the index median of 18.4%. The cash is generated by its two core segments: QCT, which designs the Snapdragon chipsets that power countless smartphones and, increasingly, cars and other connected devices; and QTL, its high-margin technology licensing arm.
Of the total returned to shareholders, $26 billion came from share repurchases, and another $17 billion was paid out as dividends. This is the financial brute force that underpins the investment case: a mature, highly profitable business dedicated to rewarding its owners.
#cash
Qualcomm (QCOM)'s stock has seen better days, trading around $170.32 a share after a recent 25% pullback from its one-month high. But behind the stock chart's noise is a much simpler story: the company has been a quiet, large cash-return machine. Over the last five years, Qualcomm handed back $43 billion to its owners through dividends and buybacks, an amount equal to 24% of its entire current market value. The question for any investor is whether that cash was a reward for a great business or a consolation prize for a stock that dramatically lagged the market.
The company's cash machine is built on two very different engines.
That $43 billion gusher, which dwarfs the $5.7 billion returned by the median S&P 500 company over the same period, comes from a business with formidable profitability. Qualcomm's operating margin over the last twelve months was 26%, well above the index median of 18.4%. The cash is generated by its two core segments: QCT, which designs the Snapdragon chipsets that power countless smartphones and, increasingly, cars and other connected devices; and QTL, its high-margin technology licensing arm.
Of the total returned to shareholders, $26 billion came from share repurchases, and another $17 billion was paid out as dividends. This is the financial brute force that underpins the investment case: a mature, highly profitable business dedicated to rewarding its owners.
#cash
25 days ago
Interested in Oracle Corporation? Here are five stocks we like better.
S&P Global Ratings downgraded Oracle's credit rating to BBB-, citing a widening free cash flow deficit and heavy reliance on OpenAI for revenue.
Microsoft, Alphabet, Amazon and Oracle are all borrowing heavily to fund AI spending, but Oracle has the weakest balance sheet and no rating cushion left.
Oracle's negative free cash flow raises the risk of higher interest costs, fewer buybacks, and difficulty covering debt if AI demand slows.
The past few weeks have seen the bond market start asking a question the stock market has mostly been happy to ignore: Who can actually afford the AI buildout?
#oracle #rating #corporation #global
S&P Global Ratings downgraded Oracle's credit rating to BBB-, citing a widening free cash flow deficit and heavy reliance on OpenAI for revenue.
Microsoft, Alphabet, Amazon and Oracle are all borrowing heavily to fund AI spending, but Oracle has the weakest balance sheet and no rating cushion left.
Oracle's negative free cash flow raises the risk of higher interest costs, fewer buybacks, and difficulty covering debt if AI demand slows.
The past few weeks have seen the bond market start asking a question the stock market has mostly been happy to ignore: Who can actually afford the AI buildout?
#oracle #rating #corporation #global
