ACN

Zscaler (ZS) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.09 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.17%. A quarter ago, it was expected that this cloud-based information security provider would post earnings of $1 per share when it actually produced earnings of $1.08, delivering a surprise of +8%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Zscaler, which belongs to the Zacks Security industry, posted revenues of $898.19 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 2.40%. This compares to year-ago revenues of $719.23 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Zscaler shares have lost about 23.2% since the beginning of the year versus the S&P 500's gain of 12%. While Zscaler has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Zscaler was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.06 on $922.95 million in revenues for the coming quarter and $4.51 on $3.89 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Security is currently in the top 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, Accenture (ACN), has yet to report results for the quarter ended August 2026. The results are expected to be released on October 1. This consulting company is expected to post quarterly earnings of $3.19 per share in its upcoming report, which represents a year-over-year change of +5.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Accenture's revenues are expected to be $18.01 billion, up 2.4% from the year-ago quarter. 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 Zscaler, Inc. (ZS) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Accenture (ACN). This company, which is in the Zacks Computers - IT Services industry, shows potential for another earnings beat. This consulting company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 2.58%. For the last reported quarter, Accenture came out with earnings of $3.8 per share versus the Zacks Consensus Estimate of $3.7 per share, representing a surprise of 2.70%. For the previous quarter, the company was expected to post earnings of $2.86 per share and it actually produced earnings of $2.93 per share, delivering a surprise of 2.45%. Thanks in part to this history, there has been a favorable change in earnings estimates for Accenture lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Accenture has an Earnings ESP of +0.33% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 1, 2026. When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. 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 Accenture PLC (ACN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Innodata Inc. INOD has delivered a strong run over the past six months, with shares gaining 40%. The performance comfortably exceeds the Zacks Engineering - R and D Services industry's 11.1% rise and the S&P 500 Index's 13.1% advance over the same period. INOD’s 6-Month Price Performance Image Source: Zacks Investment Research The rally has been supported by rapid AI-driven growth, expanding margins and a broader customer base. Innodata's record second-quarter 2026 results strengthened that case, with revenues rising 58% year over year to $92.1 million. Adjusted EBITDA jumped 92% to $25.4 million, while adjusted gross margin reached 49%.However, after the sharp share-price gain, Innodata carries a sizable valuation premium. Mixed estimate revisions and customer concentration also warrant attention. Investors therefore need to weigh the company's expanding AI opportunity against the expectations already reflected in INOD shares. Innodata's second-quarter performance showed that its AI strategy continues to translate into financial growth. Revenues of $92.1 million marked the company's 12th consecutive quarter of year-over-year growth and exceeded the Zacks Consensus Estimate by about $5.8 million, or 7%. Adjusted EBITDA of $25.4 million represented 27.5% of revenues. Earnings per share (EPS) reached 41 cents, nearly double the consensus estimate of 21 cents.Importantly, growth is being accompanied by stronger profitability. Adjusted gross margin expanded two percentage points sequentially to 49%, nine percentage points above Innodata's publicly stated 40% target. Management attributed the improvement to a greater mix of high-margin programs, including pretraining work and off-the-shelf datasets for which Innodata retains intellectual property and can monetize the same asset across multiple customers. One of the strongest arguments for further upside is the breadth of Innodata's emerging AI opportunities. Management reiterated its expectation for full-year 2026 revenue growth of at least 40%. More importantly, several large potential engagements with existing and new customers have not been included in that forecast because their scope and timing are not yet finalized.Research and innovation are also opening new markets. Innodata has established an early position in agentic reinforcement learning and is working on long-horizon agent personalization and reinforcement-learning environments for computer-use tasks. It is also expanding model evaluation and benchmarking capabilities.Beyond frontier AI models, Innodata is pursuing enterprise, cybersecurity, federal and physical AI opportunities. During second-quarter 2026, the company ran successful egocentric data-collection pilots with robotics companies and began scoping enterprise-scale multimodal programs, including a roughly 2-million-hour egocentric data opportunity. These initiatives could widen the addressable market beyond Innodata's current core programs. Customer diversification represents another encouraging development. Innodata's largest customer accounted for 37% of second-quarter revenues, down sharply from 56% in the first quarter. Meanwhile, a Big Tech customer announced in the prior quarter increased its contribution to 34% from 17%. Innodata also added a new customer described as one of the fastest-scaling frontier AI labs.The shift is important because Innodata's rapid growth has historically depended heavily on a small group of large technology customers. A broader mix of customers and programs should make growth more durable if the trend continues.The balance sheet also provides flexibility. Innodata ended the second quarter with $250.4 million in cash and short-term investments. Excluding customer prepayments, the amount was approximately $134 million, up $37 million sequentially, while the company had no debt outstanding at quarter-end. Despite the strong operating picture, INOD's valuation leaves less room for disappointment. The stock trades at 43.22X forward 12-month earnings, well above the Zacks Engineering - R and D Services industry's 27.25X. Such a premium implies that investors are already pricing in substantial earnings growth. INOD Stock’s Valuation (P/E F12M) Image Source: Zacks Investment Research Estimate revisions also send a mixed signal. Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings has climbed to $1.18 per share from 99 cents, indicating growing confidence in near-term execution. However, the 2027 estimate has declined to $1.67 from $1.78. The current estimates still imply earnings growth of 28.3% in 2026 and 41.7% in 2027, while the consensus mark for revenue projections suggests growth of 42.1% and 28.1%, respectively. INOD EPS Estimate Revision Trend Image Source: Zacks Investment Research Margins may also fluctuate. Management acknowledged that Innodata could accept large projects carrying lower gross margins if their cash-flow economics are attractive. Therefore, the 49% adjusted gross margin achieved in second-quarter 2026 should not necessarily be viewed as a new quarterly floor. Management expects revenue quality to improve over time, but quarter-to-quarter margins will depend on program mix.Customer concentration remains another risk despite the recent improvement. The top two customers together represented 71% of second-quarter revenues. Moreover, project-based work can create uneven quarterly trends, and management acknowledged that sequential revenue declines in individual quarters remain possible. Innodata's rally looks particularly strong against Genpact Limited G, Accenture plc ACN and TaskUs, Inc. TASK. Over the past six months, Innodata has gained 40%, while Genpact has lost 8%, Accenture has plunged 20.4% and TaskUs has dipped 27.5%. Genpact and Accenture compete with Innodata across enterprise AI, data engineering and AI transformation services, while TaskUs has greater overlap in AI data services, model training, annotation and human-in-the-loop work.The valuation gap, however, is substantial. Innodata trades at 43.22X forward earnings compared with 8X for Genpact, 12.2X for Accenture and 4.89X for TaskUs. Innodata's faster growth helps explain part of the premium, but Genpact, Accenture and TaskUs offer investors much lower earnings multiples. As a result, Innodata must sustain strong revenue growth and margin execution to justify its premium over Genpact, Accenture and TaskUs. Innodata's record second-quarter results offer strong support for the six-month rally. Revenues and adjusted EBITDA growth remain robust, margins have expanded, customer diversification is improving and management's 40%-plus 2026 growth outlook excludes several potentially large opportunities. Agentic AI, model evaluation, cybersecurity, robotics and enterprise AI could provide additional growth avenues.Still, the stock's 43.22X forward P/E represents a meaningful premium to the industry and its three discussed peers. Mixed 2027 estimate revisions, continued customer concentration and potential quarterly swings in revenue and margins add reasons for caution.With INOD currently carrying a Zacks Rank #3 (Hold), existing investors may prefer to stay invested and watch whether new AI programs convert into revenue and support further estimate increases. The long-term growth story remains attractive, but after a 40% six-month rally, the current valuation argues against aggressively chasing the stock at this point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 Innodata Inc (INOD) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Genpact Limited (G) : Free Stock Analysis Report TaskUs, Inc. (TASK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts 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. Completed the $1.2 billion sale of the Connectivity business to Accenture, achieving a 14.5x multiple of trailing 12-month adjusted EBITDA less CapEx. Aggressively addressed the perceived valuation gap by repurchasing 4.5 million shares year-to-date, reducing total shares outstanding by nearly 11% in seven months. Tech & Shopping revenue declines moderated significantly to 5% from 18% in Q4 2025, supported by growth in off-platform social channels and affiliate commissions. Gaming & Entertainment growth was driven by record performance at Humble Bundle, which offset advertising headwinds at IGN caused by a weak video game release slate. Health & Wellness faced structural challenges as large pharma clients shifted budgets to lower-cost platforms, though the segment saw sequential improvement from Q1. Cybersecurity & Martech performance was led by IPVanish, which achieved its fifth consecutive quarter of year-over-year growth through improved customer acquisition and white-label partnerships. Implemented an 'agentic coding' approach where the majority of new code is now AI-authored, resulting in a 24% increase in code shipped during Q2 despite lower engineering headcount. Management targets having nearly all corporate code authored by AI before the end of 2026 to drive structural operating leverage and faster feature rollouts. Q3 2026 guidance anticipates sequential revenue growth but a low to mid-single digit year-over-year decline, with modest improvement in adjusted EBITDA margins. Plans to settle $149 million in convertible debt maturing in November 2026 using cash on hand while maintaining a substantial net cash position for M&A. Expects continued sequential growth in MedPage through the balance of 2026, supported by expanded distribution into electronic health record systems. Maintains a disciplined M&A stance, targeting businesses with $5 million to $50 million in EBITDA that possess trusted brands capable of thriving in an AI-driven search environment. Estimated tax obligations related to the Connectivity sale are approximately $200 million, with the vast majority expected to be paid by the end of Q1 2027. Free cash flow conversion in the second half of 2026 will be temporarily impacted by professional fees and taxes associated with the divestiture. Management explicitly noted a 50% prevalence of AI Overviews (AIOs) in relevant search queries, contributing to ongoing declines in traditional search referral traffic. The company is intentionally avoiding 'RAG-focused' AI licensing agreements to preserve the right to fair compensation for foundational training of large language models. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management acknowledged that large pharma clients are shifting spend to lower-cost AI-based platforms, creating a structural challenge for MedPage. The company is countering this by expanding distribution into point-of-care systems and leveraging strength in consumer DTC advertising driven by GLP-1 trends. Ziff Davis remains a programmatic acquirer but noted that any potential M&A must now compete with the high risk-weighted returns of repurchasing their own stock. The strategy remains focused on 'rent extraction' from traffic, transactions, and subscriptions, regardless of the specific revenue mix. Search referral traffic continues to decline as Google increases AI-generated answers, but the company is seeing high 'citation and answer share' for its brands. Management views 'GEO' (Generative Engine Optimization) as the new SEO and believes trusted brands will become more valuable as marketers avoid 'AI slop'. The gaming business is currently 'hits-driven,' with expectations that major titles like GTA 6 will unlock significant activity in the back half of the year. Humble Bundle is the first segment to fully adopt the new AI-led platform redevelopment, which is expected to accelerate revenue through faster feature releases.

Gartner, Inc. IT combines a discounted valuation with improving earnings expectations, but its revenue picture remains uneven. Profitability and free cash flow are holding up better than the top line, giving investors a clear reason to examine the stock after its valuation reset. The key question is whether stronger earnings signals and cash generation are enough to outweigh slower sales growth, weakness in Consulting and balance-sheet constraints. Gartner trades at 12.6X forward 12-month earnings, below the industry’s 14.4X, the sector’s 18.1X and the S&P 500’s 20.7X. The stock also sits well below its five-year median of 33.9X, leaving valuation as one of the clearest positives in the investment case. Image Source: Zacks Investment Research Image Source: Zacks Investment Research That discount matters because Gartner is not being priced like its own recent history. For investors willing to accept slower growth and operating uncertainty, the lower multiple provides a wider valuation cushion than the company has typically offered. Gartner raised its 2026 adjusted earnings guidance to at least $14 per share from $13.25. It also lifted its adjusted EBITDA outlook, excluding the divested operation, to at least $1.57 billion from $1.55 billion. The Zacks Consensus Estimate for current-year earnings has moved 3.9% higher over the past four weeks. That upward revision trend strengthens the earnings side of the case even as the company’s revenue guidance has become more restrained. Management lowered its 2026 adjusted revenue outlook to at least $6.38 billion from $6.41 billion and reduced the Insights revenue forecast to at least $5.17 billion from $5.20 billion. Second-quarter Consulting revenues fell 8.8% year over year to $142 million, while Conferences revenues rose 15.5% to $244 million. Forrester Research, Inc. FORR, another research and advisory provider, reported second-quarter 2026 contract value down 3% year over year. Accenture ACN, a major consulting competitor, reported fiscal second-quarter consulting revenue growth of 3% in local currency. Those results provide useful context for Gartner’s mixed segment trends. Gartner generated $378 million of free cash flow in the second quarter and about $1.3 billion over the trailing 12 months. Management also raised its 2026 free cash flow outlook to at least $1.19 billion, supporting continued financial flexibility and capital returns. The balance sheet still deserves attention. Gartner had about $3 billion of total debt at June 30, while its current ratio was roughly 0.88. Competition, foreign-exchange swings and the cost of attracting and retaining skilled analysts, consultants and sales professionals remain additional risks. The stock’s setup favors investors who prioritize valuation and earnings revisions over rapid near-term revenue expansion. The lower earnings multiple, higher earnings guidance and cash generation are constructive, but slower adjusted revenue expectations and Consulting weakness argue against treating the discount as risk-free. Gartner currently carries a Zacks Rank #1 (Strong Buy). It carries a Value Score of A and VGM Score of A. Its Growth Score of B and Momentum Score of B are also favorable. The combination supports the stock’s near-term profile, though the uneven top line and liquidity considerations remain important when weighing whether to buy now or wait for clearer revenue acceleration. You can see the complete list of today’s Zacks #1 Rank stocks here. 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 Gartner, Inc. (IT) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Forrester Research, Inc. (FORR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Ziff Davis, Inc.? Here are five stocks we like better. Q2 results remained pressured by search-driven advertising: Revenue fell 2.7% to $286.7 million and adjusted EBITDA declined 3.7% to $76.8 million, though adjusted EPS rose 13.2% to $1.03 and free cash flow doubled to $54 million. The $1.2 billion Connectivity sale strengthened Ziff Davis’s balance sheet and capital flexibility. The company held $1.6 billion in cash, plans to pay transaction-related taxes and retire $149 million of convertible debt, and continued aggressive buybacks that reduced shares outstanding by nearly 11% in seven months. Management is responding to traffic disruption with diversification and AI investment. Ziff Davis is expanding through social, video, newsletters and applications while increasing AI-authored code, but expects third-quarter revenue to decline by the low- to mid-single digits year over year. Ziff Davis's $1.2B Deal: A Masterclass in Unlocking Value Ziff Davis (NASDAQ:ZD) said its second-quarter results reflected continued pressure in search-driven advertising businesses, partially offset by growth in several operating areas, while the company moved to reshape its capital structure following the sale of its Connectivity business. During the quarter, Ziff Davis completed the sale of its Connectivity business to Accenture for $1.2 billion. Chief Executive Officer Vivek Shah described the transaction as transformative and said the purchase price represented a 14.5-times multiple of the business’s trailing 12-month adjusted EBITDA less capital expenditures. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Shah said the sale demonstrated the company’s willingness to monetize portfolio assets where it sees a gap between its market valuation and the value of its underlying businesses. The company plans to use part of its cash for approximately $200 million in tax obligations related to the transaction and to repay $149 million of convertible debt maturing Nov. 1, 2026. For continuing operations, Ziff Davis reported second-quarter revenue of $286.7 million, down 2.7% from $294.8 million a year earlier. Adjusted EBITDA declined 3.7% to $76.8 million, while adjusted EBITDA margin was 26.8%, compared with 27.1% in the prior-year period. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Adjusted diluted earnings per share rose 13.2% to $1.03 from $0.91, primarily due to a reduced share count following buyback activity, according to Chief Financial Officer Bret Richter. Free cash flow was $54 million, up 100% from the second quarter of 2025. Advertising and performance-marketing revenue declined 6% year over year. Subscription and licensing revenue was essentially flat. Other revenue more than doubled, increasing about $3.7 million, largely due to the contribution from Semantic Labs in the MarTech group. As of June 30, the company held $1.6 billion in cash and cash equivalents and $100 million in long-term investments. Cash and cash equivalents exceeded outstanding debt by $734 million, Richter said. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Ziff Davis accelerated its share repurchases during the quarter, buying back 2.6 million shares under a 10b5-1 plan and deploying $121.5 million. Since July 1, the company has repurchased another 700,000 shares in the open market. Shah said the company had deployed more than $200 million in 2026 to repurchase 4.5 million shares, reducing outstanding shares by nearly 11% over seven months. Since the beginning of 2024, Ziff Davis has repurchased almost 13 million shares. Approximately 7 million shares remain available under the board’s current authorization. The company also completed two small acquisitions in the second quarter and has deployed $9.2 million for mergers and acquisitions year to date. Shah said Ziff Davis will continue to consider acquisitions, asset monetizations and repurchases, but will remain disciplined and patient in evaluating opportunities. Tech & Shopping revenue declined 5% year over year, an improvement from a 13% decline in the first quarter and an 18% decline in the fourth quarter. Segment adjusted EBITDA rose more than 8%, aided by lower expenses and cost-saving measures implemented in the second half of 2025. Shah said traditional search traffic remains under pressure, with the share of relevant search queries presenting Google AI Overviews rising to roughly 50% from approximately 36% when he last provided the metric. The company has sought to offset search declines through Instagram, Facebook, TikTok, YouTube, connected television, events, newsletters and native applications. He also said CNET, PCMag and IGN were among the most-cited information sources in a Semrush AI Visibility Index report, which has prompted marketer interest in aligning with trusted editorial brands. Ziff Davis has begun generating what Shah called meaningful affiliate commissions directly through social channels. Gaming & Entertainment revenue rose nearly 1%, as a record quarter at Humble Bundle offset advertising declines at IGN. Shah attributed IGN’s advertising weakness primarily to the current video-game release slate rather than traffic trends. He said the planned November launch of Grand Theft Auto VI could help drive activity for IGN, while Humble Bundle is preparing to roll out product features more quickly through an agentic coding-based platform redevelopment effort. Health & Wellness revenue declined nearly 5% and adjusted EBITDA fell nearly 10%, primarily because of lower healthcare professional advertising revenue at MedPage Today. Shah said some large pharmaceutical customers have reduced spending and shifted budgets toward lower-cost, including AI-based, platforms. However, MedPage grew sequentially from the first quarter, and management expects sequential growth through the remainder of 2026. Consumer direct-to-consumer advertising and subscription businesses benefited from growth in GLP-1 prescriptions and associated promotional spending. The company also added GLP-1 support to its Lose It! application and expanded Health eCareers’ association partnerships. Cybersecurity & MarTech revenue and adjusted EBITDA each grew nearly 1%. IPVanish posted year-over-year growth for a fifth consecutive quarter, while smtp.com continued to deliver double-digit growth, management said. Shah said AI has become central to the company’s product-development process. The proportion of released code authored by AI roughly doubled during the quarter, and a majority of newly released or updated code is now written by AI. Ziff Davis is targeting nearly all code being AI-authored before the end of 2026. The company released 24% more code in the second quarter than in the first quarter despite lower engineering headcount, Shah said, with initial quality metrics holding steady. He said the effort is intended to lower the cost per feature delivered and support a wider product roadmap without proportionately increasing resources. For the third quarter, Ziff Davis expects revenue to increase sequentially but decline by the low- to mid-single digits year over year. The company expects a modest improvement in adjusted EBITDA margin from the second quarter. For the fourth quarter, management expects a lower rate of revenue decline than in the third quarter, while adjusted EBITDA margins are expected to be slightly below the prior-year level. Regarding AI content licensing, Shah said Ziff Davis is not inclined to enter agreements focused on retrieval-augmented generation that could compromise its ability to seek compensation for foundational model training. He said the company’s litigation with OpenAI is continuing and that management is waiting for greater legal clarity before pursuing what it views as a rational licensing market. Ziff Davis, Inc is a digital media and internet company that operates a diverse portfolio of online brands, subscription-based services and performance marketing platforms. The company specializes in technology publishing and digital marketing solutions, offering content, reviews and insights tailored to consumer and enterprise audiences. Ziff Davis's flagship media properties include PCMag, which provides expert reviews and comparisons of consumer electronics and software, as well as IGN, a leading destination for gaming news, reviews and entertainment coverage. Founded in 1927 by William B. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ziff Davis Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Accenture (NYSE:ACN) and Automatic Data Processing (NASDAQ:ADP) have been consistent performers for many years. Both companies’ annual revenue continues to grow, although at single-digit rates. As artificial intelligence (AI) becomes an opportunity for these companies to expand their revenue potential through new services, investors should monitor how this technology affects their revenue growth going forward. Accenture primarily generates revenue by delivering a wide array of strategy, consulting, technology, and operations services worldwide. While expanding its cybersecurity portfolio through multiple acquisitions and forming new joint partnerships, it reported an approximately 13% net income margin for the quarter ended May 31, 2026. Automatic Data Processing primarily earns revenue by providing cloud-based human capital management and payroll outsourcing solutions. As it launched a new Canadian wage tracking tool and experienced no major adverse events, it generated an approximately 18% net income margin for the quarter ended June 30, 2026. Revenue is the most fundamental measure of a company’s performance. Changes over time can reveal how easily a company can expand, reach new customers, and defend its competitive position in the industry. Data source: Company filings. Data as of July 30, 2026. Accenture is experiencing significant traction for AI services. It is targeting a more than $240 billion addressable market with the launch of Accenture Edge, which offers cybersecurity solutions to mid-sized organizations. Cybersecurity is growing faster than the rest of the business, and management plans to keep investing to support that growth. Automatic Data Processing is also seeing strong demand for The Zone, its AI-powered service platform that works alongside ADP Assist, the company’s AI-powered workflow platform. ADP Assist has over 3 million unique active users, underscoring how the company continues to find growth opportunities even as AI reshapes the corporate workplace. Still, as both companies see traction in AI-related services, they are growing at similar revenue growth rates as before. AI appears to be an extension of their continued growth and not an accelerant yet. This may not allow either company to outpace the other, keeping their relative revenue gaps roughly even for the foreseeable future. Investors will want to continue to monitor how AI-related services influence their growth trajectory for signs of competitive strength or weakness amid rapid change in the corporate landscape. Before you buy stock in Accenture Plc, 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 Accenture Plc wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and 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 $396,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,300,820!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 5, 2026. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc. The Motley Fool recommends the following options: long January 2028 $260 calls on Accenture Plc and short January 2028 $280 calls on Accenture Plc. The Motley Fool has a disclosure policy. Accenture vs. Automatic Data Processing: Comparing Quarterly Revenue Trends was originally published by The Motley Fool

Dublin, Ireland-based Accenture plc (ACN) provides strategy and consulting, industry X, song, and technology and operation services. Valued at $98.2 billion by market cap, the company delivers a range of specialized capabilities and solutions to clients across all industries and operates a network of businesses providing outsourcing and alliances. The leading global professional services company is expected to announce its fiscal fourth-quarter earnings for 2026 in the near future. Ahead of the event, analysts expect Accenture to report a profit of $3.19 per share on a diluted basis, up 5.3% from $3.03 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. Billionaire Charlie Munger Said Your First $100K Is the Key to Getting Rich — ‘I Don’t Care What You Have to Do ... Find a Way.’ Then You Can 'Ease Off the Gas a Little.' Why This Analyst Is Betting AMD Stock Can Hit $1,250 in the Next Year Dear Bloom Energy Stock Fans, Mark Your Calendars for July 28 Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For the full year, analysts expect Accenture to report EPS of $13.85, up 7.1% from $12.93 in fiscal 2025. Its EPS is expected to rise 5.9% year over year to $14.67 in fiscal 2027. ACN stock has notably underperformed the S&P 500 Index’s ($SPX) 16% gains over the past 52 weeks, with shares down 45.6% during this period. Similarly, it considerably underperformed the State Street Technology Select Sector SPDR ETF’s (XLK) 33.1% gains over the same time frame. ACN’s weakness reflects AI disruption and macro headwinds set to persist into next year. Investors worry AI will erode demand for Accenture’s hours-based consulting. Additionally, hawkish FOMC comments and a stronger dollar added pressure by squeezing IT budgets and offshore earnings. Meanwhile, CEO Julie Sweet noted about $100 million in lost consulting revenue from Middle East-driven client caution and EMEA deal delays, with some managed services pushed to next year. Despite this, management is countering with a push into AI, OT cybersecurity, and mid-market growth. Analysts’ consensus opinion on ACN stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 26 analysts covering the stock, 12 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 13 give a “Hold.” ACN’s average analyst price target is $179.65, indicating a potential upside of 16.6% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Interested in Brown & Brown, Inc.? Here are five stocks we like better. Strong revenue growth: Brown & Brown’s second-quarter revenue rose 30.4% to $1.7 billion, driven largely by acquisitions and higher contingent commissions. Adjusted EPS increased 3.9% to $1.07, while the adjusted EBITDAC margin declined 100 basis points to 35.7%. Organic performance was mixed: Organic revenue fell 0.7% excluding contingent commissions, with Retail growing 1.5% and Specialty Distribution declining 3.5%. Management expects second-half organic growth of 1.5%–2.5% in Retail and 2%–4% in Specialty Distribution, excluding contingents. Pricing pressure and AI investments shape the outlook: Catastrophe-property insurance rates continued to fall 15%–35%, while casualty and professional liability pricing remained firmer. The company is partnering with Anthropic, McKinsey and Accenture on AI initiatives aimed at improving productivity and margins without materially increasing technology spending. Starbucks Builds Sovereign AI to Cut $400 Million in Software Costs Brown & Brown (NYSE:BRO) reported second-quarter revenue of $1.7 billion, up 30.4% from a year earlier, as acquisition activity and higher contingent commissions helped offset pressure from declining catastrophe-property insurance rates. Chief Executive Officer Powell Brown said the company’s results came in modestly ahead of its expectations despite continued declines in catastrophe-property pricing. Adjusted diluted earnings per share increased 3.9% to $1.07, while adjusted EBITDAC rose 27%. The company’s adjusted EBITDAC margin declined 100 basis points year over year to 35.7%. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Dutch Bros Q1 Earnings: The Newest Starbucks Rival Faces Its First Big Reality Check “We’re pleased with our financial performance for the quarter,” Brown said, pointing to the work of the company’s employees in providing risk-management solutions to customers. Organic revenue declined 0.7% from the prior-year period, but increased 0.7% when contingent commissions were included. Brown said the company began providing both measures because contingent commissions can fluctuate by quarter and because many peers do not separately disclose them. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 2026 Food Inflation Outlook: This ETF Could Outperform In the Retail segment, organic revenue grew 2.5% including contingent commissions and 1.5% excluding them. Brown said net new business was better than expected and contingent commissions were particularly strong, although he added that Retail’s organic growth “is not where we want it to be yet.” The company is working to combine two large organizations and said its enhanced go-to-market sales model is gaining momentum as teams collaborate on new business opportunities. CFO Andy Watts said Retail’s total revenue increased 35.9%, primarily due to acquisitions completed over the past year. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Retail’s organic growth was negatively affected by approximately 60 basis points from a pharmacy consulting business, according to Watts. The company also recorded an $18 million current-period adjustment to organic revenue related to litigation involving employees who left to join a startup broker. Brown & Brown expects the full-year revenue impact from new and lost business and incentive commissions associated with the matter to be between $50 million and $60 million. Specialty Distribution organic revenue declined 1.6% including contingent commissions and 3.5% excluding them. Those measures were reduced by nearly 200 basis points because about $10 million of new-business revenue from one program was delayed and is expected to be recorded substantially in the third quarter, Brown said. Specialty Distribution total revenue rose 28.1%, aided by the acquisition of Accession and increased contingent commissions. The segment’s EBITDAC margin fell 400 basis points to 42.7%, reflecting lower organic growth and investments in European wholesale and programs capabilities. Brown & Brown recognized about $410 million in quarterly revenue from Accession, with margins in line with expectations, Watts said. He said the acquired business is expected to operate at roughly a 35% margin overall and should not materially add to or subtract from the company’s consolidated margin, though it lowers Specialty Distribution’s reported margin because legacy programs and wholesale operations had higher margins. The company also disposed of a non-core Retail business with annual revenue of approximately $30 million to $35 million. Cash flow from operations totaled approximately $610 million during the first six months of 2026, up $70 million, or 13%, from the prior-year period. Cash-flow conversion was affected by nonrecurring Accession-related items, including higher-than-anticipated final earn-out payments, as well as the timing of working capital. Watts said the earn-out effect was a one-time item and that the company still expects long-term cash-flow conversion of roughly 24% to 27%. Over the past nine months, Brown & Brown repurchased approximately nine million shares, partially offsetting shares issued in connection with the Accession acquisition. The company said it will continue to prioritize hiring, share repurchases, debt reduction, technology investments and selective acquisitions that add specialized capabilities rather than simply scale. Brown said commercial insurance pricing trends were broadly similar to the first quarter. Workers’ compensation and non-catastrophe property rates were generally flat to down 5%, while primary casualty and professional liability rates were generally up 5%. Excess casualty layers faced more pricing pressure. Catastrophe-property rates continued to decline by 15% to 35%, driven by ample underwriting capital and supply exceeding demand. Brown said some customers are retaining the savings while others are using lower prices to modify coverage structures, limits or deductibles. For employee benefits, medical costs remained up 8% to 10%, while pharmacy costs increased more than 10%. Brown said those cost trends are supporting demand for the company’s advisory and consulting services. For the second half, Brown & Brown expects Retail organic growth excluding contingents of 1.5% to 2.5% and Specialty Distribution organic growth excluding contingents of 2% to 4%. The company said it has entered partnerships with Anthropic, McKinsey & Company and Accenture to advance its artificial intelligence strategy. Brown said Brown & Brown views AI as an enabler for employees rather than a replacement for risk advisers, brokers or delegated underwriters. The company is targeting improvements in sales, service, underwriting, placement, submissions and support functions. Brown said it expects AI, data and analytics to support faster cycle times, higher productivity, stronger organic growth and margin expansion over time. Management does not currently expect incremental technology spending, saying it can redirect resources from existing operations toward data analytics, innovation and AI. Watts said the company will monitor implementation pace and the organization’s ability to absorb change, and would communicate any material changes in spending expectations. Brown & Brown reaffirmed its expectation to generate $30 million to $40 million in integration synergies this year and said it expects insurance-market and economic conditions in the second half to remain generally consistent with recent quarters. Brown & Brown, Inc (NYSE: BRO) is a professional insurance brokerage and risk advisory firm that provides a broad range of property and casualty, employee benefits, personal risk, and specialty insurance products. The company works with commercial, public sector and individual clients to design and place insurance programs, manage claims and loss control, and deliver risk management consulting. Its services also include wholesale brokerage, program administration and other specialty distribution solutions that connect carriers and intermediaries to niche markets. Brown & Brown operates through a decentralized model of operating units and subsidiaries, enabling local client service with the scale to access national and specialty markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Brown & Brown Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts 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. Management emphasized a shift toward evaluating organic growth both with and without contingent commissions to provide a more direct comparison to industry peers. Performance was impacted by significant downward pressure on CAT property rates, which decreased 15% to 35% during the quarter due to supply exceeding demand. Retail segment growth was slightly above expectations, driven by a new go-to-market sales model and strong contingent commissions despite ongoing integration of large organizations. Specialty Distribution faced a 200 basis point headwind due to approximately $10 million in delayed new business revenue, which is expected to be recovered in the third quarter. The company is leveraging new partnerships with McKinsey, Accenture, and Anthropic to accelerate AI adoption, focusing on enhancing teammate efficiency rather than replacing personnel. Customer sentiment remains cautious but stable, with businesses monitoring inflation and geopolitical matters while maintaining modest hiring and investment patterns. Management anticipates retail organic growth (excluding contingents) between 1.5% and 2.5% and specialty distribution growth between 2% and 4% for the second half of 2026. The company expects to deliver $30 million to $40 million in synergies this year from recent integration activities. Capital allocation will prioritize hiring for organic growth and share repurchases, followed by debt reduction and selective, specialized M&A. AI and data analytics initiatives are expected to drive incremental organic growth and margin expansion over the coming years as they become embedded in workflows. Management expects CAT property rates to continue decreasing at rates similar to the first half of the year, barring a major loss event between $100 billion and $150 billion. Litigation related to former employees joining a start-up broker resulted in an $18 million adjustment to organic revenue this quarter, with a full-year impact estimated at $50 million to $60 million. EBITDAC margin decreased 100 basis points to 35.7%, primarily due to lower interest income compared to the prior year when cash was held for the Accession acquisition. The company disposed of a non-core retail business with annual revenues of approximately $30 million to $35 million. Cash flow conversion was negatively impacted by nonrecurring items related to Accession, including higher-than-anticipated final earn-out payments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that Accession revenues are relatively well-balanced, though July is a significant month for placements. The business is expected to maintain a total margin around 35%, which aligns with specialty distribution weighting. Management noted that CAT property is generally not subject to contingents, insulating that revenue stream from property rate decreases. Specialty contingents are calculated program-by-program based on specific underwriting profitability rather than broad industry trends. The company is currently redirecting existing resources from 'running the business' to innovation and AI, avoiding incremental spend callouts for now. Management believes the true benefits of AI will be realized in years three through five of the implementation cycle. Management is using the departures to the start-up broker as an opportunity to hire new talent with different capabilities that fit the company culture. The situation has reportedly galvanized the remaining team to collaborate more closely in the marketplace.

Moody's MCO reported second-quarter 2026 adjusted earnings of $4.68 per share, which outpaced the Zacks Consensus Estimate of $4.24. The bottom line jumped 31% from the year-ago quarter.Shares of MCO have lost almost 2% in pre-market trading on broader market weakness despite posting better-than-expected quarterly performance.The results primarily benefited from an improvement in revenues. Steady demand for analytics and the robust performance of the Moody’s Investors Service segment supported the results. The company’s liquidity position was strong in the quarter. An increase in operating expenses acted as a headwind.After considering certain non-recurring items, net income attributable to Moody's was $878 million, or $5.03 per share, up from $578 million, or $5.03 per share, in the prior-year quarter. Quarterly revenues were $2.19 billion, which surpassed the Zacks Consensus Estimate of $2.09 billion. The top line rose 15% year over year. Total expenses were $1.14 billion, up 5% year over year.Adjusted operating income of $1.21 billion surged 25% year over year. The adjusted operating margin was 55.3%, up from 50.9% a year ago. Moody’s Investors Service revenues jumped 25% year over year to $1.3 billion. The rise was driven by broad-based impressive performance across all lines of business. Moody’s Analytics revenues rose 4% to $925 million. The increase was driven by 2% growth in Decision Solutions, a 3% rise in Research and Insights and a 9% jump in Data and Information. As of June 30, 2026, Moody’s had total cash, cash equivalents and short-term investments of $1.5 billion, down from $1.51 billion as of Dec. 31, 2025.The company had $6.38 billion in outstanding long-term debt. In the first half of 2026, MCO repurchased $2.2 billion worth of shares. Moody’s expects adjusted earnings in the range of $16.50-$17.00 per share, narrower than the previous guidance of $16.40-$17.00. Moody’s projects revenues to increase in the high-single-digit percent range.Operating expenses are expected to be in the mid-single-digit range. Moody’s remains well-positioned for growth, driven by a solid market position, strength in diverse operations and strategic acquisitions. Elevated operating expenses and geopolitical and macroeconomic concerns are likely to hurt its financials. Moody's Corporation price-consensus-eps-surprise-chart | Moody's Corporation Quote Currently, Moody’s carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Accenture plc ACN reported third-quarter fiscal 2026 earnings of $3.80 per share, beating the Zacks Consensus Estimate by 2.7%. The metric increased 9% from the year-ago quarter. ACN’s revenues of $18.72 billion missed the consensus mark by 0.4% but rose 6% year over year in U.S. dollars and 3% in local currency. Managed services, EMEA and communications, media, and technology aided top-line growth. S&P Global Inc. SPGI is scheduled to report first-quarter 2026 results on July 28.Over the past seven days, the Zacks Consensus Estimate for S&P Global’s quarterly earnings has been revised lower to $4.49. The estimated figure indicates 1.4% growth from the prior-year quarter. 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 Moody's Corporation (MCO) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report S&P Global Inc. (SPGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research