Sony Group Corporation

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Sony (SONY) ten years ago? It may not have been easy to hold on to SONY for all that time, but if you did, how much would your investment be worth today?
Sony's Business In-Depth
With that in mind, let's take a look at Sony's main business drivers.
Headquartered in Tokyo, Japan, Sony Group Corporation (known as Sony Corporation till March 2021) designs, manufactures and sells several consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors. Additionally, Sony is active in the production, acquisition and distribution of recorded music and the management and licensing of the words and music for songs.
In addition, Sony operates several financial services businesses that include banking operations and life and non-life insurance operations, both of which are managed by its Japanese subsidiaries. Sony Financial Group mainly focuses on insurance, banking and other operations primarily through Sony Life. Markedly, Sony Bank offers mortgage loans and foreign-currency deposits to consumers via online services. Also, the company has an advertising agency and a network services business in Japan.
In the first quarter of fiscal 2016, Sony realigned its business, which primarily involved repositioning of operations related to its All Other segment.
The company currently has six major reportable segments – G&NS (accounting for 32.8% of total operating revenues in fiscal 2023); Music (12.4%); Pictures (11.5%); Entertainment, Technology & Services (ET&S) (18.9%); Imaging & Sensing Solutions (I&SS) (12.3%); and Financial Services (12.1%).
(Note: Zacks identifies fiscal years by the month in which the fiscal year ends, while SONY identifies its fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by SONY, will refer to this same fiscal year as being the year before the same year, as identified by Zacks)
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Sony a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in December 2014 would be worth $4,662.87, or a 366.29% gain, as of December 4, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 191.65% and gold's return of 110.50% over the same time frame.
Going forward, analysts are expecting more upside for SONY.
Sony is gaining from demand across G&NS, Music and I&SS units amid softness in the financial services unit. The G&NS unit is benefiting from favorable forex impact, higher sales from network services (PlayStation Plus) and rising sales of non-first-party titles. Momentum in recorded music and music publishing sales is driving the Music unit’s performance. Strength in operating income is a plus. It has revised its revenue outlook for fiscal 2024 from ¥12,610 billion projected earlier to ¥12,710 billion due to the strengthening of the G&NS unit. Lower hardware sales and stiff rivalry are concerns. Demand for mobile sensors is likely to be affected due to changes in the production plan of a key customer. For fiscal 2024, sales for the I&SS unit are projected to be ¥1,770 billion from ¥1,850 billion estimated earlier
Over the past four weeks, shares have rallied 13.41%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to get this free report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's How Much a $1000 Investment in Sony Made 10 Years Ago Would Be Worth Today

Tuesday, May 12, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including NVIDIA Corp. (NVDA), Mastercard Inc. (MA) and AbbVie Inc. (ABBV), as well as two micro-cap stocks Waterstone Financial, Inc. (WSBF) and Precipio, Inc. (PRPO). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> CPI Inflation Rate Heats Up to +3.8%
Today's Featured Research Reports
Shares of NVIDIA have gained +70.1% over the past year against the Zacks Semiconductor - General industry’s gain of +79.1%. The company is benefiting from the strong growth of artificial intelligence (AI) and high-performance accelerated computing. The growing demand for generative AI and large language models using graphics processing units (GPUs) based on NVIDIA’s Hopper and Blackwell architectures is aiding data center revenues.
The continued ramp-up of Ada RTX GPU workstations in the ProViz end market, following the normalization of channel inventory, is acting as a tailwind. Collaborations with more than 320 automakers and tier-one suppliers are likely to advance its presence in the autonomous vehicle space.
However, a limited supply of Blackwell GPUs may hinder its ability to meet demand. Rising costs associated with the production of more complex AI systems will hurt margins. The U.S.-China tech war and rising competition from AMD remain major concerns.
(You can read the full research report on NVIDIA here >>>)
Mastercard’s shares have declined -12.5% over the past year against the Zacks Financial Transaction Services industry’s decline of -24.2%. The company’s rebates and incentives are rising with new and renewed deals, and management expects operating expenses to keep growing as it funds safety, security, digital and B2B initiatives. Geopolitical disruption is weighing on cross-border travel. Valuation remains elevated, supporting a Neutral view.
Nevertheless, Mastercard’s scale and brand strength continue to support steady payment network growth, helped by stable consumer and business spending and higher transaction activity. Cross-border and contactless adoption remain key long-term drivers, and value-added services keep diversifying revenue through cybersecurity, analytics and digital authentication.
Partnerships and targeted acquisitions also extend reach into new payment flows, including stablecoin infrastructure. Share repurchases and dividends remain supported.
(You can read the full research report on Mastercard here >>>)
Shares of AbbVie have gained +13.3% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +23.6%. The company beats first-quarter estimates for both earnings and sales. It has successfully navigated Humira's loss of exclusivity (LOE) by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications, and should support top-line growth in the next few years.
AbbVie’s neuroscience portfolio is also rapidly expanding and contributing significantly to top-line growth. AbbVie boasts a robust pipeline and expects important data readouts, regulatory submissions and approvals throughout 2026. It has been on an acquisition spree in the past couple of years to bolster its early-stage pipeline that should drive long-term growth.
However, the company faces several headwinds, such as Humira LOE impact, slowing oncology sales and continued macro headwinds for Aesthetics.
(You can read the full research report on AbbVie here >>>)
Waterstone Financial’s shares have outperformed the Zacks Financial - Savings and Loan industry over the past year (+50.3% vs. +16.7%). This microcap company with a market capitalization of $331.09 million delivered a strong earnings rebound in Q1 2026 as higher asset yields and easing funding costs expanded net interest margin to 2.97% from 2.47%, driving EPS growth. Mortgage banking returned to profitability, supported by a 31% increase in originations and a sharp refinancing recovery.
The company maintains strong capital and liquidity, with risk-based capital above 20% and substantial unused FHLB borrowing capacity. Management also remains shareholder-friendly through dividends and sizable buybacks, including authorization covering nearly 12% of shares outstanding.
However, risks include weakening credit quality, heavy near-term deposit repricing exposure, reliance on wholesale funding and rising operating expenses that could pressure margins if mortgage activity slows. Shares trade below peer valuation levels at 11.05X earnings and 0.95X book value.
(You can read the full research report on Waterstone Financial here >>>)
Shares of Precipio have outperformed the Zacks Medical Info Systems industry over the past year (+302.8% vs. -34.2%). This microcap company with a market capitalization of $50.81 million has its investment thesis centered on the scalability of its pathology platform and integrated lab-and-diagnostics model. Its core pathology business continues to demonstrate operating leverage, supporting margin expansion and stronger cash generation as volumes grow.
Management is also positioning the Products division for broader commercialization through expanded sales capabilities and distributor relationships. The hybrid operating structure supports recurring customer engagement and cross-selling opportunities, including the planned AML molecular testing launch.
However, the story remains execution-sensitive due to liquidity constraints and product-margin volatility. Investors must balance scalability potential against financing risks. Valuation levels imply a cautious market despite improving profitability, creating upside if execution improves.
(You can read the full research report on Precipio here >>>)
Other noteworthy reports we are featuring today include Toyota Motor Corp. (TM), Sony Group Corp. (SONY) and CVS Health Corp. (CVS).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Value Chain and Structural Profit Initiatives Aid Toyota (TM)
Per the Zacks analyst, Toyota's value chain businesses have been growing significantly and are expected to continue expanding through 2030. The company is also pursuing cost reduction initiatives.
Strength in the I and SS Segment Aids SONY Amid G and NS Segment Weakness
Per the Zacks analyst, robust sales in the Music, Pictures and Imaging and Sensing Solutions segments are driving Sony's results. Softness in the Games and Network segment is concerning.
CVS Health (CVS) Banks on Health Services Strength, Macro Woes Stay
The Zacks analyst is impressed with the revenue momentum in CVS Health's Health Services segment, aided by pharmacy drug mix and brand inflation. Yet, macroeconomic pressures may hurt its growth.
Improved Product Mix to Aid Ford (F) Amid High Capital Requirement
Per the Zacks analyst, Ford's strategy of emphasizing higher-margin vehicles and trims is improving its profitability. However, rising capital requirements tied to EV development can hurt cash flows.
Global IT Infrastructure Benefits IQVIA (IQV), Liquidity Low
Per the Zacks Analyst, IQVIA's strong healthcare-specific global IT infrastructure places it firmly in the life sciences space. Low liquidity remains a concern.
Improving Air Traffic Aid Curtiss-Wright (CW) Amid Labor Shortage
Per the Zacks analyst, Curtiss-Wright is likely to benefit from the improving air traffic. Yet labor shortage result in delays and likely impact operating results.
Scaled User Base Drive Duolingo (DUOL) Amid Margin Compression
Per the Zacks analyst, Duolingo's scale and rapid product iteration underpin long-term optionality and ensure stability. Advertising costs and broader AI rollout pressure the margin.
New Upgrades
Tapestry (TPR) Coach Brand Demand and Gen Z Drive Growth
Per the Zacks analyst, Tapestry's strong demand across regions and rising Gen Z engagement helped Coach add a record 2.4 million customers in Q3, reinforcing its path toward a $10-billion brand.
MKS (MKSI) Rides on AI-related Semiconductor Demand and NAND Upgrades
Per the Zacks analyst, MKS is benefiting from the growing demand in the Semiconductor and Electronics and Packaging markets, particularly in AI-related applications and NAND upgrades.
YPF Sociedad Anonima (YPF) to Benefit From Shale Oil Growth
Per the Zacks analyst, YPF Sociedad Anonima's shale oil growth and expected improvement in global crude prices will boost profitability. However, mature field operations continue to drag performance.
New Downgrades
Conagra (CAG) Margins Hurt by Inflation, Weak Operating Leverage
Per the Zacks analyst, Conagra's margins are hurt by inflation and weak operating leverage. In Q3, adjusted gross profit margin fell 112 basis points due to cost inflation and unfavorable leverage.
Strategic Acquisitions, Solid Liquidity Aid Fifth Third (FITB)
Per the Zacks analyst, Fifth Third's buyout of Comerica accelerated its long-term growth plan, enhancing scale, profitability and geographic reach. Also, robust liquidity is a positive.
Macro Woes and Paused Pricing Ail Planet Fitness' (PLNT) Prospects
Per the Zacks analyst, Planet Fitness faces softer net member growth as marketing resets, macro pressure, and competition weigh. A paused Black Card price hike and lower 2026 outlook pose concerns.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Stock Reports for NVIDIA, Mastercard & AbbVie

Nexstar Media Group NXST reported first-quarter 2026 earnings of $6.15 per share, beating the Zacks Consensus Estimate by 28.7% and increasing 82.5% year over year. The year-over-year improvement was significantly amplified by $42 million of one-time transaction and restructuring expenses that were excluded from the non-GAAP figure in the current quarter, with no comparable adjustments in the prior year period.
Revenues increased 13.1% year over year to $1.4 billion, surpassing the Zacks Consensus Estimate by 10.6%, reflecting $106 million of incremental revenues from the TEGNA acquisition and higher advertising and distribution revenues at legacy business units.
Nexstar Media Group, Inc. Price, Consensus and EPS Surprise
NXST's Quarter in Detail
Distribution revenues of $837 million increased 9.8% year over year, reflecting $54 million of incremental TEGNA revenue and higher legacy business revenue from increased retransmission rates, growth in virtual multichannel video programming distributor (vMVPD) subscribers and the addition of CW affiliations on certain stations, partially offset by traditional MVPD subscriber attrition. On a combined basis, assuming TEGNA ownership for the full quarter, distribution revenues increased 1.6% year over year.
Advertising revenues of $548 million rose 19.1% year over year, driven by $51 million of incremental TEGNA advertising revenues and a $35 million year-over-year increase in political advertising at legacy business units to $41 million, reflecting the 2026 election cycle. Non-political advertising at legacy Nexstar grew a modest 0.4% as digital gains offset declines in traditional television advertising. On a combined basis, political advertising reached $78 million, up 89% versus the comparable 2022 cycle and 19% versus the comparable 2024 cycle.
Other revenues were $11 million, declining 8.3% year over year.
Adjusted EBITDA of $470 million increased $89 million or 23.4% year over year, with $31 million attributable to TEGNA and the remainder driven by higher legacy revenues and lower broadcast rights amortization at The CW. Adjusted EBITDA margin expanded to 33.7% from 30.9% in the comparable prior-year period. Net income of $160 million rose 64.9% year over year, with net income margin improving to 11.5% from 7.9%.
Balance Sheet & Cash Flow
As of March 31, 2026, total cash and cash equivalents were $379 million compared with $280 million as of Dec. 31, 2025. Total debt stood at $12.15 billion versus $6.33 billion at Dec. 31, 2025, reflecting the debt financing of the $3.66 billion TEGNA acquisition. The company's pro forma first lien net leverage ratio was 2.94 times against a covenant test of 4.75 times, and total net leverage was 3.84 times at quarter end.
Nexstar returned $56 million to shareholders through dividends in the first quarter, maintaining its quarterly cash dividend of $1.86 per share. After quarter end, Nexstar repaid its $150 million short-term Term Loan A and additional mandatory debt, bringing total debt repaid through April 30, 2026, to $182 million. The company also closed a refinancing of its 2027 senior notes with a new $1.725 billion issuance of 7.25% senior notes due 2034.
Net cash provided by operating activities was $289 million, declining 14.2% year over year, primarily due to working capital timing and a reduction in cash distributions from the company's 31.3% equity stake in Television Food Network. Adjusted free cash flow of $420 million improved 20.7% year over year, supported by higher adjusted EBITDA and reduced broadcast rights payments at The CW.
TEGNA Acquisition and Other Strategic Details
NXST closed the acquisition of TEGNA on March 19, 2026. The company expects to report its first full consolidated quarter with TEGNA when it releases second-quarter 2026 results.
For the second quarter on a combined basis, management expects non-political advertising to decline mid-single digits, reflecting a broader softening in the advertising environment. Nexstar also announced digital distribution partnerships with ESPN for exclusive streaming of CW sports content and with Roku for CW entertainment programming, extending its reach across streaming platforms without the capital burden of building proprietary platforms. The CW network remains on track for full profitability in the fourth quarter of 2026, with 2026 losses expected to improve by more than 30%.
Zacks Rank & Stocks to Consider
Nexstar currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Capcom CCOEY, Sony SONY and Fox Corporation FOXA. Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capcom is set to report fourth-quarter fiscal 2026 results on May 12. Capcom shares have declined 8.3% year to date.
Sony is slated to report fourth-quarter fiscal 2026 results on May 13. Sony shares have declined 22.3% year to date.
Fox Corporation is set to report third-quarter fiscal 2026 results on May 11. Fox Corporation shares have declined 14.2% year to date.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NXST Q1 Earnings Beat Estimates on TEGNA Deal and Political Lift

News Corporation NWSA reported third-quarter fiscal 2026 earnings of 21 cents per share on an adjusted basis, which surpassed the Zacks Consensus Estimate by 31.3% and increased 23.5% year over year.
Revenues of $2.19 billion increased 8.8% year over year and exceeded the consensus mark by 4.4%. The year-over-year rise was driven by growth across the Dow Jones, Digital Real Estate Services and Book Publishing segments.
News Corporation Price, Consensus and EPS Surprise
NWSA's Quarterly Details
Adjusted revenues (which exclude the impacts of foreign currency, acquisitions and divestitures) increased 4% year over year. Total segment EBITDA rose 18% year over year to $343 million, marking News Corporation's 12th consecutive quarter of year-over-year total segment EBITDA growth on a continuing operations basis. EBITDA margin expanded 130 basis points to 15.7%, from 14.4% in the prior year.
NWSA's three core growth pillars — Dow Jones, Digital Real Estate Services and Book Publishing — collectively generated 17% segment EBITDA growth in the fiscal third quarter, accelerating from the rate recorded in the second quarter.
NWSA's Segment Details
Digital Real Estate Services
Revenues in the Digital Real Estate Services segment increased 17% year over year to $473 million, driven by robust growth at both REA Group and Move. Adjusted revenues and adjusted segment EBITDA increased 8% and 16% year over year, respectively. Segment EBITDA surged 25% to $155 million, with margin widening from 30.5% to 32.8%.
Revenues at Move, operator of Realtor.com, increased 10% year over year to $148 million, driven primarily by higher sales of RealPRO Select as Move shifts its focus to more premium offerings with higher revenues per lead and revenue growth in seller, new homes and rentals. Based on Move's internal data, average monthly unique users of Realtor.com's web and mobile sites for the fiscal third quarter were 66 million, flat year over year. Lead volume rose 6% year over year. Realtor.com averaged 5.3 visits per unique user in the third quarter compared with 3.5 at Zillow, 2.9 at Redfin and 1.9 at Homes.com, with overall visit share standing at 31% of total real estate portal visits, improving from 29% in the second quarter. Realtor.com also launched its app within ChatGPT and partnered with OpenAI to enhance the experience for sellers, buyers and realtors through AI-powered search and discovery tools.
REA Group revenues rose 20% year over year to $325 million, driven by a $31 million positive impact from foreign currency fluctuations, higher Australian residential revenues due to price increases, growth in add-on products and geographical mix, and higher financial services revenues. Strong Australian revenues were partly offset by a decrease in REA India revenues due to the sale of PropTiger and the closure of Housing Edge. Australian national residential new buy listing volumes in the quarter were up 1% year over year, with listings in Sydney up 4% and Melbourne up 7%.
Dow Jones
The Dow Jones segment's revenues increased 8% year over year to $619 million, extending a streak of 13 consecutive quarters of year-over-year EBITDA growth. Digital revenues accounted for 84% of total revenues in the quarter, compared with 82% in the prior year. Adjusted revenues rose 6% year over year, segment EBITDA increased 11% to $147 million and margin expanded 70 basis points to 23.7%. Adjusted segment EBITDA rose 12%.
Professional information business revenues grew 11% year over year, with Risk & Compliance revenues rising 19% to $100 million, driven by customer growth, product expansion and improved pricing. Contributions from the recently integrated acquisitions of Dragonfly and Oxford Analytica supported this growth during a period of heightened geopolitical uncertainty. Dow Jones Energy revenues grew 12% to $77 million, with customer retention remaining strong at approximately 90%. Management noted that the surge in U.S. energy exports is creating a new customer base that can be served without a commensurate increase in investment.
Circulation and subscription revenues rose 7% year over year. Digital circulation revenues accounted for 76% of circulation revenues, compared with 75% in the prior year. Advertising revenues increased 6% to $91 million, representing the highest third-quarter revenues since fiscal 2022, with digital advertising growing 13% and print declining 6%. Digital advertising represented 67% of total advertising revenues, up from 63%.
Total average subscriptions to Dow Jones' consumer products exceeded 6.5 million for the quarter, up 7% year over year. Digital-only subscriptions grew 9% to nearly 6.1 million. Total subscriptions to The Wall Street Journal increased 8% to 4.7 million, while digital-only subscriptions grew 11% to 4.3 million, representing 92% of total Wall Street Journal subscriptions and driven by enterprise partnerships. At the Dow Jones Investor Briefing in March 2026, management outlined a pathway to $1 billion in annual segment EBITDA within five years, underpinned by continued strength in Risk & Compliance and Dow Jones Energy.
Book Publishing
The Book Publishing segment generated revenues of $555 million, an 8% increase year over year and the highest third-quarter segment EBITDA result since fiscal 2021. Adjusted revenues grew 4% year over year. Segment EBITDA rose 14% to $73 million, with margin expanding 70 basis points to 13.2%. Adjusted segment EBITDA also increased 14%.
Strong demand for Rachel Reid's Game Changers series, fueled by the streaming adaptation of Heated Rivalry, drove much of the quarter's outperformance. Digital sales increased 11% year over year, with e-book sales rising 17% and audiobooks increasing 7%. Digital sales represented 26% of consumer revenues compared with 25% in the prior year. Backlist titles contributed 64% of consumer revenues compared with 65% in the prior year. Management cited an encouraging frontlist pipeline for the fiscal fourth quarter, including forthcoming releases from Ann Patchett, Alex Aster and Laurie Gilmore.
News Media
Revenues in the News Media segment increased 5% year over year to $538 million, primarily attributable to a $38 million positive impact from foreign currency fluctuations. On an adjusted basis, revenues declined 2% year over year. Digital revenues represented 40% of News Media segment revenues, compared with 39% in the prior year.
Circulation and subscription revenues rose 7% year over year. Advertising revenues increased 3% year over year, aided by a $13 million favorable foreign currency impact and higher digital advertising revenues, partially offset by lower print advertising revenues, notably at News U.K. Segment EBITDA declined 55% year over year to $15 million, primarily driven by lower contribution from News U.K. and launch costs associated with the California Post. Adjusted segment EBITDA declined 61%. Management described the California Post as a disciplined investment, noting meaningful increases in daily active users and California-based engagement across the New York Post Media Group.
As of March 31, 2026, The Times and The Sunday Times had 676,000 closing digital subscribers, compared with 629,000 in the prior year, a gain of 7%. Closing digital subscribers at News Corp Australia were 1,171,000, compared with 1,148,000 in the prior year.
Other Financial Aspects
News Corporation reported net income from continuing operations of $121 million for the third quarter, a 13% increase from $107 million in the prior year, driven by higher total segment EBITDA and partially offset by higher tax expense.
Free cash flow for the nine months ended March 31, 2026, was $535 million compared with $539 million in the prior year. The year-over-year decrease was primarily due to higher capital expenditures, partially offset by higher cash provided by operating activities. News Corporation expects strong free cash flow growth for the full fiscal year despite moderately higher capital expenditures.
As of March 31, 2026, cash and cash equivalents stood at $2.17 billion, a decline of 9.6% from $2.40 billion as of June 30, 2025, primarily reflecting the acceleration of share repurchase activity and higher working capital outflows during the period.
NWSA’s Zacks Rank and Stocks to Consider
Currently, NWSA carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Capcom CCOEY, Sony SONY and Fox Corporation FOXA. Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capcom is set to report fourth-quarter fiscal 2026 results on May 12. Capcom shares have declined 8.3% year to date.
Sony is slated to report fourth-quarter fiscal 2026 results on May 13. Sony shares have declined 22.3% year to date.
Fox Corporation is set to report third-quarter fiscal 2026 results on May 11. Fox Corporation shares have declined 14.2% year to date.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NWSA's Q3 Earnings Surpass Estimates, Revenues Increase Y/Y

Warner Bros. Discovery WBD reported a first-quarter 2026 loss of $1.17 per share, missing the Zacks Consensus Estimate of a loss of 10 cents. The company had reported a loss of 18 cents per share in the year-ago quarter. The quarter's reported GAAP loss was substantially inflated by a $2.8 billion termination fee paid to Netflix in connection with the pending merger with Paramount Skydance Corporation, as well as $1.3 billion in pre-tax acquisition-related amortization and restructuring charges.
Revenues decreased 1% year over year to $8.89 billion, missing the Zacks Consensus Estimate by 0.41%.
Distribution revenues were down 1% ex-forex to $4.91 billion, as underlying growth in global streaming subscribers was offset by continued domestic linear pay TV subscriber declines and the impact of the HBO Max domestic distribution deal renewal with a former related party. Advertising revenues decreased 8% ex-forex year over year to $1.85 billion, as ad-lite streaming subscriber growth was more than offset by the absence of the NBA and continued domestic linear audience declines; the absence of the NBA negatively impacted the year-over-year growth rate by 7% ex-forex. Content revenues were relatively unchanged year over year at $1.89 billion, as higher intercompany content revenues at the Studios segment were offset by higher intercompany eliminations.
WBD ended the first quarter of 2026 with more than 140 million global streaming subscribers, meaningfully exceeding its own guidance threshold and up 14% year over year. Beginning with first-quarter 2026, WBD no longer reports granular subscriber metrics or ARPU on a quarterly basis.
Warner Bros. Discovery, Inc. Price, Consensus and EPS Surprise
WBD's Q1 2026 Details
The Streaming segment reported revenues of $2.89 billion, up 7% ex-forex year over year. Distribution revenues rose 7% ex-forex, driven by continued subscriber growth in existing markets and the global expansion of HBO Max through new distribution deals, partially offset by the domestic distribution deal renewal with a former related party. Advertising revenues increased 19% ex-forex, primarily reflecting growth in global ad-lite subscribers, despite a 5% ex-forex headwind from the absence of the NBA. Streaming Adjusted EBITDA increased 17% ex-forex to $438 million from $339 million in the year-ago quarter, driven by robust topline growth that more than offset higher marketing and content investment tied to HBO Max's international launches.
The Studios segment reported revenues of $3.13 billion, up 31% ex-forex year over year. Content revenues rose 33% ex-forex, with TV revenues increasing 58% ex-forex, primarily driven by higher intercompany content licensing to support HBO Max's international rollout and higher third-party licensing, while theatrical revenues advanced 21% ex-forex on a similar dynamic. Games revenues decreased 30% ex-forex on lower library revenues. Studios Adjusted EBITDA increased 156% ex-forex to $775 million from $259 million in the prior-year quarter, reflecting the step-change benefit of accelerated intercompany content licensing. On a full-year 2026 basis, Studios Adjusted EBITDA is expected to be roughly in line with 2025.
The Global Linear Networks segment reported revenues of $4.38 billion, down 9% ex-forex year over year. Distribution revenues declined 8% ex-forex, primarily driven by a 10% decrease in domestic linear pay TV subscribers, partially offset by a 2% increase in domestic affiliate rates. Advertising revenues fell 12% ex-forex, with the absence of the NBA accounting for 7% of that decline alongside 8% domestic audience declines; underlying advertising trends nevertheless improved 200 basis points sequentially. Global Linear Networks Adjusted EBITDA decreased 10% ex-forex to $1.63 billion from $1.79 billion in the year-ago quarter, though cost discipline helped partially cushion the impact as operating expenses declined 9% ex-forex.
Total Adjusted EBITDA for the first quarter of 2026 was $2.20 billion, roughly flat ex-forex year over year, as gains in the Streaming and Studios segments were offset by the decline in the Global Linear Networks segment.
WBD's Balance Sheet & Cash Flow
Warner Bros. Discovery ended the first quarter of 2026 with cash and cash equivalents of $3.26 billion, compared with $4.57 billion as of Dec. 31, 2025. As of March 31, 2026, the company's $4 billion revolving credit facility remained undrawn. WBD had $3.85 billion drawn on its revolving receivables program, a $150 million increase versus the fourth quarter of 2025. Gross debt stood at $33.4 billion with net leverage of 3.4x compared with 3.3x at the end of the fourth quarter of 2025.
First-quarter 2026 operating activities used $208 million in cash, compared with cash provided of $553 million in the prior-year quarter. Free cash flow decreased to negative $476 million from $302 million a year ago, primarily driven by higher net content investment across the Streaming and Studios segments, higher tax payments and working capital timing, partially offset by lower cash interest payments. Free cash flow was unfavorably impacted by approximately $100 million of separation and transaction-related items. WBD repaid $123 million of Senior Notes during the quarter.
Q2 & Full-Year 2026 Guidance by WBD
WBD remains on track to surpass 150 million global streaming subscribers by the end of 2026.
For the second quarter, the absence of the NBA is expected to represent a 20% ex-forex headwind to advertising revenues in the Global Linear Networks segment, partially offset by a net 400 basis point benefit from the NCAA March Madness Final Four and Championship broadcast.
The previously disclosed domestic distribution deal renewal, which has weighed on distribution revenue growth, is expected to be lapped by the end of May 2026.
For Studios, the second quarter will face a difficult comparison against A Minecraft Movie, Sinners and Final Destination: Bloodlines from the prior-year period.
The pending acquisition of WBD by Paramount Skydance Corporation received shareholder approval on April 23, 2026 and is expected to close during the third quarter of 2026. WBD expects to incur additional transaction-related cash costs through the close of the transaction.
Zacks Rank & Stocks to Consider
WBD currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Capcom CCOEY, Sony SONY and Fox Corporation FOXA. Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capcom is set to report fourth-quarter fiscal 2026 results on May 12. Capcom shares have declined 6.6% year to date.
Sony is slated to report fourth-quarter fiscal 2026 results on May 13. Sony shares have declined 19% year to date.
Fox Corporation is set to report third-quarter fiscal 2026 results on May 11. Fox Corporation shares have declined 14.8% year to date.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Warner Bros. Discovery Q1 Earnings Miss Estimates, Revenues Fall Y/Y

Paramount Skydance Corporation PSKY reported first-quarter 2026 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate.
The quarter reflected continued momentum across the company's ongoing transformation, with Direct-to-Consumer growth, a studio recovery and disciplined cost management driving outperformance on both revenue and profitability.
On the revenue front, PSKY posted total revenues of $7.35 billion, beating the Zacks Consensus Estimate by 1.4%. Revenues grew 2.16% year over year, reflecting continued momentum in streaming and a double-digit rebound at the studio, partially offset by structural headwinds in linear television.
PSKY reported adjusted earnings per share of 23 cents per share, beating the Zacks Consensus Estimate by 53.33%. The first-quarter 2026 results include $103 million in transaction-related costs associated with the pending Warner Bros. Discovery merger.
Paramount Skydance Corporation Price, Consensus and EPS Surprise
Paramount Skydance Corporation price-consensus-eps-surprise-chart | Paramount Skydance Corporation Quote
PSKY's Financial Performance Overvie
GAAP operating income totaled $616 million in the first quarter of 2026 compared with $550 million in the first quarter of 2025, with the current period including $103 million in transaction-related costs associated with the pending WBD merger, excluded from the company's adjusted profitability measure.
Adjusted EBITDA reached $1.16 billion in the first quarter of 2026, rising 59% year over year from $732 million and translating to a 15.8% margin. The result reflected strong cost discipline across the business, with expenses coming in lighter than planned on slower hiring pacing and favorable content spend timing.
On the advertising front, total company ad revenues declined 3% year over year, an improvement from the fourth-quarter 2025 trajectory, with the DTC advertising business returning to growth driven by improved fill rates across both Paramount+ and Pluto TV.
PSKY's Q1 Segment Performance Details
The DTC segment posted revenues of $2.40 billion, up 11% year over year. Paramount+ revenues grew 17% year over year to $1.97 billion, driven by a 14% increase in ARPU reflecting the January price increase and an improved subscriber mix. The platform ended the quarter with 79.6 million paid subscribers, adding 700,000 on a reported basis and approximately 2 million on an underlying basis, partially offset by the deliberate exit of over 1 million uneconomic international hard-bundle subscribers. DTC Adjusted EBITDA improved to $251 million (10% margin) from a loss of $4 million in the first quarter of 2025, reflecting subscription and advertising growth as well as a content expense benefit from the Skydance accounting basis change. Pluto TV saw VOD hours per user rise 60% year over year, with 65% of U.S. viewing minutes now coming from registered users.
The TV Media segment reported revenues of $3.67 billion, down 6% year over year, with both advertising and affiliate revenues declining 6% each, reflecting international exits and continued pay-TV subscriber erosion. Despite the revenue pressure, cost discipline drove TV Media Adjusted EBITDA to $1.1 billion (29% margin), up from a 24% margin in the first quarter of 2025. CBS held 13 of the top 20 primetime series and delivered the most-watched Masters final-round broadcast in over a decade.
The Studios segment revenues grew 11% year over year to $1.28 billion, led by Scream 7 — which surpassed $200 million globally — and the consolidation of Skydance licensing revenues. Studios Adjusted EBITDA reached $164 million (13% margin), up from $82 million in the first quarter of 2025. The film slate has doubled to 15 releases in 2026 from 8 in 2025.
PSKY's Q1 Balance Sheet and Cash Flow Details
As of March 31, 2026, cash and cash equivalents totaled $1.94 billion, down from $3.27 billion at Dec. 31, 2025, primarily reflecting a $2.8 billion advance consideration payment for the WBD acquisition funded via a $2.15 billion revolving credit facility draw, partially offset by $347 million in debt repayments.
Gross debt stood at $15.48 billion as of March 31, 2026, up from $13.66 billion at Dec. 31, 2025, with $86 million in debt maturities remaining for the balance of 2026.
Operating cash flow was $185 million in the first quarter, broadly in line with $180 million in the year-ago period. Free cash flow was $96 million, compared with $123 million in the first quarter of 2025, reflecting higher capital expenditures of $89 million versus $57 million in the prior-year period.
PSKY Offers Q2 and Full-Year 2026 Outlook
For the second quarter of 2026, PSKY expects total revenues between $6.75 billion and $6.95 billion (flat to down 1% year over year). The outlook reflects a difficult comparison against Mission: Impossible — The Final Reckoning theatrical revenues in the second quarter of 2025 and the lapping of NCAA Final Four and Championship ad revenue.
Paramount+ subscriber growth is expected to be flattish quarter over quarter due to the planned exit of approximately 2 million additional international hard-bundle subscribers.
Adjusted EBITDA is guided to $900 million to $1 billion (13.9% margin at midpoint). The company also anticipates transformation costs of several hundred million dollars in the second quarter, which will weigh on reported free cash flow.
DTC segment margins are expected to face additional pressure in the third and fourth quarters as the content slate ramps through the second half of 2026.
For 2026, PSKY reaffirmed its target of $30 billion in total revenue (+4% year over year) and $3.8 billion in Adjusted EBITDA (12.7% margin), representing approximately 16% profitability growth year over year. Free cash flow conversion is expected at approximately 5% before roughly $800 million in transformation costs. The efficiency program remains on track to deliver more than $2.5 billion in run-rate efficiencies by year-end 2026 and at least $3 billion through 2027.
On the technology and operations front, PSKY remains on track to unify its streaming services, BET+, Pluto TV and Paramount+, onto a single tech stack by mid-2026, with Pluto TV set to receive its most significant product update in a decade this summer.
The WBD acquisition remains on track to close by the end of the third quarter of 2026, with $10 billion in permanent financing secured and $49 billion in bridge financing syndicated to 18 global financial institutions.
Zacks Rank & Stocks to Consider
PSKY currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Capcom CCOEY, Sony SONY and Fox Corporation FOXA. Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capcom is set to report fourth-quarter fiscal 2026 results on May 12. Capcom shares have declined 8.1% year to date.
Sony is slated to report fourth-quarter fiscal 2026 results on May 13. Sony shares have declined 22.7% year to date.
Fox Corporation is set to report third-quarter fiscal 2026 results on May 11. Fox Corporation shares have declined 13.3% year to date.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PSKY Q1 Earnings & Revenues Beat Estimates, Q2 Outlook Soft

Roku ROKU shares have appreciated 6% since the company reported its first-quarter 2026 results on April 30. The upward momentum can be attributed to accelerating platform revenue growth and an all-time high in free cash flow on a trailing 12-month basis.
Roku reported first-quarter 2026 earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 34 cents. The company had reported a loss of 19 cents per share in the year-ago quarter.
Revenues increased 22.4% from the year-ago quarter's level to $1.25 billion and beat the consensus mark by 3.8%.
Roku shares have appreciated 13.9% year to date, outperforming the Zacks Consumer Discretionary sector’s 7% decline.
Roku, Inc. Price and EPS Surprise
Roku's Platform Strength Powers Q1 Momentum
The company posted strong first-quarter 2026 results, supported by broad-based execution across advertising and subscriptions and the continued monetization strength of its leading TV streaming platform.
Advertising performance was driven by Roku's expanding programmatic infrastructure, with ad spend through third-party partners rising more than 40% year over year on the back of deeper integrations with Google's DV360, Amazon DSP, The Trade Desk, Yahoo and FreeWheel. The Roku Ads Manager self-service platform more than doubled its advertiser base year over year, while non-Media and Entertainment brands reached an all-time high of nearly 30% of Roku Experience advertising revenues, reflecting growing demand diversification.
Subscriptions activity in the quarter was highlighted by a record period for Premium Subscriptions sign-ups, with Apple TV added in March and Peacock in April. The company further scaled its owned-and-operated SVOD service, Howdy, via Prime Video, a standalone mobile app and a launch in Mexico. Roku ranked as the fastest-growing distributor of third-party billed subscriptions in the broader SVOD category as of March 2026, per Antenna.
Devices performance was underpinned by a landmark milestone, surpassing 100 million streaming households globally on the Roku TV operating system. Roku-made TV unit sales grew year over year, powered by the Hiro TV ramp at Target and strengthening momentum at Best Buy and Amazon, while new OEM licensing agreements are expected to contribute to unit volume in the second half of 2026.
Q1 Segment Details of ROKU
Platform revenues (90.6% of revenues) increased 28.4% year over year to $1.13 billion. Starting in the first quarter of 2026, ROKU has disaggregated Platform into two reportable operating segments — Advertising and Subscriptions — to provide greater investor visibility into its business.
Advertising revenues grew 26.9% year over year to $612.7 million, driven by continued strength in programmatic demand and expanding adoption of the Roku Ads Manager platform.
Subscriptions revenues grew 30.3% year over year to $518.5 million. Excluding the contribution from the Frndly TV acquisition, Subscriptions revenues grew 23% year over year.
Devices revenues (9.4% of revenues) declined 15.9% from the year-ago quarter's level to $117.6 million, driven by lower streaming player unit sales and promotional pricing.
ROKU's Operating Details
Gross margin, as a percentage of total revenues, expanded 160 bps from the year-ago quarter's level to 45.2%.
Platform gross margin contracted 110 bps year over year to 51.6%. Within the segment, Advertising gross margin expanded 450 bps to 60.5%, reflecting improved fill rates, the scaling of high-visibility home screen ad units and greater programmatic efficiency. Subscriptions gross margin contracted 760 bps to 41.1%, reflecting a mix shift toward Premium Subscriptions. Devices gross margin deteriorated 250 bps year over year to negative 16.3%.
Operating expenses increased 2% year over year to $513.2 million. As a percentage of total revenues, the metric contracted to 41.1% from 49.3% reported in the year-ago quarter.
Research and development expenses rose 3% year over year to $189.5 million, while general and administrative expenses grew 8% to $102.5 million. Sales and marketing expenses decreased 1% to $221.2 million.
In the first quarter, adjusted EBITDA was $148.4 million, up 165% year over year. The adjusted EBITDA margin improved 640 bps on a year-over-year basis to 11.9%.
Operating income was $51.8 million in the reported quarter compared with an operating loss of $57.7 million in the year-ago quarter.
Balance Sheet of Roku
As of March 31, 2026, cash and cash equivalents were $1.65 billion compared with $1.59 billion as of Dec. 31, 2025. As of March 31, 2026, Roku had no long-term debt.
Free cash flow on a trailing-twelve-month basis reached an all-time high of $538.8 million, up 81% year over year.
Roku Provides Q2 & 2026 Guidance
For the second quarter, Roku estimates total net revenues of approximately $1.3 billion, up 17% year over year. Platform revenues are expected to grow approximately 20% year over year. Device revenues are anticipated to be down high-single digits year over year. Roku expects total gross profit of approximately $580 million and adjusted EBITDA of $170 million for the quarter.
For 2026, Roku raised its outlook. The company now projects Platform revenues of approximately $5 billion, representing growth of 21% year over year, with gross margin expected to be at the high end of the 51% to 52% range. Device revenues are expected to be approximately $535 million, with gross margins in the high negative-20% range.
Roku projects total net revenues of $5.5 billion, total gross profit of $2.45 billion and adjusted EBITDA of $675 million, translating to a margin improvement of approximately 330 bps year over year. Roku is targeting $1 billion of free cash flow by 2028.
Zacks Rank & Stocks to Consider
Roku currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Capcom CCOEY, Sony SONY and Fox Corporation FOXA. Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capcom is set to report fourth-quarter fiscal 2026 results on May 12. Capcom shares have declined 8.1% year to date.
Sony is slated to report fourth-quarter fiscal 2026 results on May 13. Sony shares have declined 22.7% year to date.
Fox Corporation is set to report third-quarter fiscal 2026 results on May 11. Fox Corporation shares have declined 13.3% year to date.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Roku, Inc. (ROKU) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ROKU Shares Rise 6% on Q1 Earnings Beat, Revenues and EPS Up Y/Y

IMAX Corporation IMAX shares have declined 4% since the company reported its first-quarter 2026 results on April 30. The downward momentum can be attributed to year-over-year revenue decline and notable margin compression, both driven by a historically difficult comparable period in Greater China, which more than offset strong bottom-line growth and robust performance across all other geographies.
IMAX reported first-quarter 2026 adjusted earnings of 17 cents per share, which beat the Zacks Consensus Estimate of 15 cents by 13.33%. The company had reported adjusted earnings of 13 cents per share in the year-ago quarter.
Revenues declined 6.1% from the year-ago quarter's level to $81.4 million and missed the consensus mark by 0.76%.
IMAX shares have declined 1.2% year to date, outperforming the Zacks Consumer Discretionary sector’s 7% decline.
IMAX Corporation Price, Consensus and EPS Surprise
IMAX's Q1 2026 Results in Detail
Category-wise, Technology Sales declined 0.8% year over year to $13.4 million. Image Enhancement and Maintenance Services revenues declined 4.3% year over year to $48.6 million, while Technology Rentals fell 13.9% year over year to $16.6 million. Finance Income declined 10.5% year over year to $2.8 million.
Segment-wise, Content Solutions revenues declined 8% year over year to $31.4 million, with gross margin contracting 1,100 basis points to 58%, reflecting the China comparable headwind from Ne Zha 2 and upfront marketing charges ahead of major upcoming releases. Technology Products and Services revenues declined 4.5% year over year to $48.3 million, with gross margin percentage broadly stable at 56% versus 57% in the year-ago period.
Network Growth Statistics of IMAX
IMAX installed 19 systems in the first quarter, spanning Japan, England, France, Singapore, South Africa, China and the United States, compared with 21 in the year-ago period. As of March 31, 2026, 1,865 IMAX systems were operating in 91 countries and territories. First-quarter signings totaled 23, with year-to-date signings reaching 42 across 10 countries, highlighted by a 10-system agreement with HOYTS in Australia, the company's largest agreement ever in that market. Total system backlog stood at 435 as of March 31, 2026.
Operating Details of IMAX
Gross margin contracted 510 basis points to 56.3%. Total Adjusted EBITDA declined 18% year over year to $30.5 million, with margin contracting 520 basis points to 37.5%. SG&A declined to $32.5 million from $33.5 million, reflecting cost discipline and timing of spend. Operating income fell approximately 40% year over year to $10 million.
Balance Sheet & Cash Flow Details for IMAX
As of March 31, 2026, available liquidity was $528.4 million, with cash of $146 million. Total debt was $300.3 million, up from $288.7 million at Dec. 31, 2025, with net leverage at 0.86x. Operating cash flow was $4 million, reflecting $8.7 million in lease incentives provided to exhibitors to support network expansion. No shares were repurchased during the quarter, with $250.7 million remaining under the $500 million buyback program.
IMAX’s 2026 Guidance
For full-year 2026, IMAX reaffirmed global box office of approximately $1.4 billion, adjusted EBITDA margin in the mid-40s with a floor of 45% and system installations of 160 to 175. The slate includes Christopher Nolan's The Odyssey, Denis Villeneuve's Dune: Part Three, Jon Favreau's The Mandalorian and Grogu and Greta Gerwig's Narnia, among at least 14 Filmed For IMAX titles. With over $105 million in global box office achieved in April alone, up more than 15% year over year, the company appears well-positioned heading into the summer blockbuster season.
Zacks Rank & Stocks to Consider
IMAX currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Capcom CCOEY, Sony SONY and Fox Corporation FOXA. Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capcom is set to report fourth-quarter fiscal 2026 results on May 12. Capcom shares have declined 8.1% year to date.
Sony is slated to report fourth-quarter fiscal 2026 results on May 13. Sony shares have declined 22.7% year to date.
Fox Corporation is set to report third-quarter fiscal 2026 results on May 11. Fox Corporation shares have declined 13.3% year to date.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IMAX Shares Decline 4% Despite Q1 Earnings Beat, Revenues Down Y/Y

Key Points
AMD's video game console business has historically been a major growth driver for the company.
The company has deals to design semi-custom processors for Microsoft and Sony's next-generation consoles.
The strong growth of AMD's data center business and a potentially strong surge in game console sales could send the stock soaring over the next five years.
Advanced Micro Devices (NASDAQ: AMD) is quite upbeat about the prospects of its data center business over the next three to five years, and that's not surprising. The company's artificial intelligence (AI) accelerator chips are set to be deployed in large volumes by numerous AI companies and hyperscalers.
It has deals in place with OpenAI and Meta Platforms to deploy several gigawatts (GW) of its AI data center chips, which should open a multibillion-dollar growth opportunity for the chip designer. Management estimates that its data center business could clock more than 60% annualized revenue growth for the next three to five years.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
However, there's another potent catalyst that has driven significant revenue and earnings growth for AMD in the past, and it's about to return in a big way.
AMD's semi-custom business should get a major boost thanks to a new generation of gaming consoles
Microsoft (NASDAQ: MSFT) and Sony (NYSE: SONY) have long relied on AMD to design semi-custom chips for their gaming consoles. Citing a couple of AMD executives, a July 2024 report from Tom's Hardware points out that AMD avoided bankruptcy back in the 2010s thanks to strong sales of its PlayStation 4 processor.
AMD was in dire straits around 15 years ago, deep in debt and struggling to grow revenue. However, the arrival of the PS4 and Microsoft's Xbox One (which was also powered by an AMD semi-custom chip) in November 2013 gave the chip designer a major shot in the arm. While its overall revenue was down 2% in 2013, its graphics and visual solutions business (which included sales of semi-custom processors) saw a 55% jump in annual revenue to $2.19 billion.
AMD credited this solid performance to increased semi-custom revenue. Management pointed out that its semi-custom and embedded processor business accounted for 30% of its total revenue in the third and fourth quarters of 2013. AMD returned to revenue growth the following year, fueled by a 51% jump in revenue from the enterprise, embedded, and semi-custom (EESC) segment.
Cut to the end of 2020, and the launch of the next-generation PS5 and Xbox consoles in November that year gave the semi-custom business another big boost. AMD's EESC revenue jumped by 65% during the year to $3.33 billion, outpacing the 45% growth in its overall revenue. What's more, the segment's revenue more than doubled the following year to $7.1 billion as more consumers upgraded to the latest consoles.
AMD has reclassified its business segments since then, and it now includes its semi-custom business within the client and gaming segment. The company reported $3.9 billion in gaming revenue last year, an increase of 51% over the previous year, fueled by strong demand for its semi-custom processors and gaming graphics cards.
AMD's gaming business should start clocking stronger growth from next year as Sony and Microsoft are reportedly going to launch their next-generation consoles during the 2027 holiday period, per leaks and supply chain information. Their launches should trigger a major upgrade cycle as the current console models will be almost seven years old by then.
The good news for AMD investors is that it has already been locked in by both companies to supply semi-custom processors for their next consoles. Investors would do well to note that the PS5 and Xbox Series X and Series S have sold a combined 120 million units over the past five years.
So, AMD has a major catalyst in the bag that could complement the outstanding growth of its data center business, potentially setting the company up for stronger-than-expected long-term growth.
The stock is already primed for remarkable gains over the next five years
AMD's non-GAAP (adjusted) earnings came in at $4.17 per share in 2025. In its November analyst day presentation, the company said that it expects to achieve earnings per share of more than $20 over the next three to five years. That would translate to an annualized growth rate of almost 37% over five years, which is quite impressive.
Additional growth drivers, such as the semi-custom business, could help it do better than that. But even if it achieves only $20 in earnings per share after five years and trades at 33 times earnings at that time (in line with the tech-laden Nasdaq-100 index's earnings multiple), AMD stock could jump to $660.
That's more than double its current price. However, don't be surprised to see this semiconductor stock jump higher than that, driven by the catalyst of a video game console business that could lead the market to reward it with a premium valuation.
Should you buy stock in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,797!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,282,815!*
Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 1, 2026.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Catalyst Helped AMD Avoid Bankruptcy, and It's Coming Back to Supercharge the Stock (Hint: It's Not Artificial Intelligence)

Key Points
Added 3,529 MercadoLibre shares; estimated trade value of $6.81 million based on quarterly average pricing.
Quarter-end position value rose by $3.44 million, reflecting both share increase and price movement.
Transaction equated to 0.68% of reportable 13F assets under management.
Post-trade stake totals 12,871 shares, valued at $22.25 million.
MercadoLibre now represents 2.21% of the fund's 13F AUM, which places it outside the fund's top five holdings.
On April 14, 2026, Pictet North America Advisors SA disclosed a buy of additional MercadoLibre (NASDAQ:MELI) shares.
What happened
According to a U.S. Securities and Exchange Commission (SEC) filing dated April 14, 2026, Pictet North America Advisors SA increased its position in MercadoLibre by 3,529 shares. The estimated transaction value is $6.81 million, based on the average closing price for the first quarter of 2026. The quarter-end position value increased by $3.44 million, which includes the impact of share additions and price changes.
What else to know
This was a buy, bringing the stake to 2.21% of the fund’s reportable 13F AUM.
Top five holdings after the filing:
NYSEMKT: GLD: $66.81 million (6.6% of AUM)
NYSE: TSM: $60.60 million (6.0% of AUM)
NASDAQ: GOOGL: $47.52 million (4.7% of AUM)
NYSE: AZN: $42.02 million (4.2% of AUM)
NYSE: SONY: $32.80 million (3.3% of AUM)
As of April 13, 2026, shares were priced at $1,831.93, down 8.26% over the past year, underperforming the S&P 500 by 34.86 percentage points.
Company/Etf overview
Price (as of market close April 13, 2026)
$1,831.93
Market Capitalization
$92.87 billion
Revenue (TTM)
$28.89 billion
Net Income (TTM)
$2.00 billion
Company/Etf snapshot
Offers an integrated suite of e-commerce, fintech, logistics, and advertising solutions, including the Mercado Libre Marketplace, Mercado Pago payments, Mercado Envios logistics, and Mercado Credito lending.
Generates revenue primarily through transaction fees, payment processing, financial services, logistics, and value-added services for merchants and consumers across Latin America.
Serves a broad customer base of individuals, small businesses, and large enterprises seeking online commerce, digital payments, and financial services in Latin American markets.
MercadoLibre is a leading e-commerce and fintech platform in Latin America, operating at scale with over 84,000 employees and a market capitalization of $92.87 billion. The company leverages its proprietary technology to provide end-to-end digital commerce and financial solutions, enabling seamless transactions for millions of users. Its integrated ecosystem and strong regional presence underpin its competitive advantage in high-growth emerging markets.
What this transaction means for investors
Pictet bought MercadoLibre shares in the fourth quarter of 2025 as the stock had fallen into bear market territory.
That may appear to stand in contrast to the returns of over 6,300% over since it debuted in 2007. The Latin American conglomerate led the way in e-commerce in its region. Moreover, to overcome business obstacles, it also founded companies such as Mercado Pago and Mercado Envios and became a major player in the fintech and logistics industries.
However, challenges related to these businesses have weighed on the consumer discretionary stock recently. Even though revenue grew 44% in 2025, increased e-commerce competition and a rise in non-performing loans cut into profits. Consequently, its $2.0 billion in net income increased by only 5% over the previous year.
Nonetheless, neither challenge is likely to derail MercadoLibre’s long-term growth trajectory when accounting for its revenue growth. Moreover, its P/E ratio is 47 is arguably justified given that strong revenue growth.
Ultimately, when considering MercadoLibre’s market positioning in Latin America and the rapid growth rate, Pictet probably made a wise decision by adding to its holdings in Q4.
Should you buy stock in MercadoLibre right now?
Before you buy stock in MercadoLibre, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MercadoLibre wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $556,335!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,160,572!*
Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 14, 2026.
Will Healy has positions in MercadoLibre and SPDR Gold Shares. The Motley Fool has positions in and recommends Alphabet, AstraZeneca Plc, MercadoLibre, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence		—
Support		—
Cash flows		—

Sony Group Corporation

Market sentiment

Overall assessment

Share of longs and shorts

Long

Short