BLK

NVDA posted $96B in revenue, up 106% year-over-year, but free cash flow collapsed $27B sequentially as working capital consumed cash. NVIDIA extended payment terms to large customers, pushing days sales outstanding from 45 to 60 days and edging toward vendor financing territory. Jensen Huang called compute revenue while NVIDIA disclosed $279B in supply commitments and $108.5B in guarantees backed by Apollo, BlackRock, and Goldman Sachs. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. NVIDIA (NASDAQ:NVDA)'s fiscal second quarter of 2027 was the kind of report that would ordinarily leave nothing to argue about. Revenue reached $96.2 billion, up 18% sequentially and 106% from a year ago, and shares traded at $225.92 on Thursday afternoon. The uncomfortable line sits below the income statement. Free cash flow fell from $48.6 billion in the previous quarter to $21.3 billion, a $27.2 billion sequential decline. That figure deserves context. Free cash flow was still 59% higher than a year ago, and "vanished" refers only to the sequential drop. The question is whether that drop reflects the mechanics of a company growing at this speed, or the earliest visible shape of vendor financing at NVIDIA. Operating income was high, landing at $63.73 billion, and capital spending stayed modest at $2.68 billion. The gap opened inside working capital. Accounts receivable climbed by more than $22 billion to $63.1 billion, and inventory rose by $5.8 billion to $31.6 billion ahead of the Vera Rubin rollout. Higher cash taxes applied further pressure. Each of those items describes a supplier issuing very large invoices, holding more parts, and paying a larger tax bill within the same ninety days. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Days sales outstanding measures the average time between shipping a product and collecting cash. NVIDIA's DSO increased from 45 days to 60 days, which the company attributed to "extended payment terms for large purchases by certain investment grade customers to be shipped over multiple quarters". On a revenue base this large, each additional day of collection is meaningful cash sitting outside the bank account. The investment-grade characterization is NVIDIA's own language, worth reading as such rather than as independently verified credit analysis. Extending terms is a choice. A supplier that lengthens payment terms to help buyers commit to multi-quarter orders is doing more than selling; it's providing financing. Indeed, Nvidia has been providing financing to many current and potential customers, and that has only been accelerating. Many are calling this circular financing, though AI bulls don't think so. The benign reading has real force. A company doubling revenue year over year mechanically ties up cash in receivables and inventory, and building stock before a product transition like Vera Rubin is what competent management does. The uncomfortable reading has more force than it did a quarter ago. Alongside longer terms, NVIDIA disclosed $279 billion in supply commitments and guarantee obligations capped at $108.5 billion for AI cloud partners, on top of financing partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR. Jensen Huang described the moment plainly: "AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue." Some of that revenue is being financed by the seller. The fiscal second quarter is mostly the benign story. Investors watching NVIDIA should treat working capital as a genuine line of analysis rather than a footnote, and can consult NVIDIA's Q2 FY27 release and its CFO commentary for the underlying disclosures. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Contact [email protected] for any questions or corrections.

Nvidia NVDA) stock has surged more than 7% on Thursday after the AI chip giant delivered another blockbuster quarterly report yesterday evening and, more importantly, gave Wall Street considerably more confidence that its extraordinary growth can extend well into next year. Ahead of the report, several key questions surrounded Nvidia's Q2 results: whether its Vera Rubin platform was ramping on schedule, if gross margins could remain near 75%, and how much of the massive AI infrastructure buildout Nvidia would ultimately have to finance itself. The answers were mostly encouraging, although investors still have a few risks to weigh before chasing today's rally. Image Source: Zacks Investment Research Nvidia posted Q2 revenue for its current fiscal 2027 of $96.22 billion, soaring 106% from $46.74 billion in the prior year quarter and comfortably topping estimates of $91.79 billion. Adjusted net income came in at $53.95 billion, or earnings of $2.22 per share, up 120% year over year and beating Q2 EPS expectations of $2.09 by 6%. Data Center sales were the standout once again, jumping 117% to a record $89 billion. Image Source: Zacks Investment Research Even more impressive was Nvidia’s outlook. The chip giant expects Q3 revenue of $108 billion, plus or minus 2%, with no Data Center compute sales from China included in that forecast. Management also offered a preliminary expectation for roughly 70% revenue growth in fiscal 2028, despite anticipating that supply will remain constrained through the end of that reporting year. That longer-term outlook arguably provided the biggest catalyst for today's rally, as Wall Street had been bracing for a much steeper slowdown in Nvidia's growth rate. To that point, its Q3 revenue forecast came in above analyst consensus estimates of $102 billion (Current Qtr below), while the FY28 preliminary revenue forecast is well ahead of Zacks current projections of $553.24 billion or 42% growth. Image Source: Zacks Investment Research The Vera Rubin ramp also provided the confirmation investors were looking for. Production shipments began earlier this month, and Nvidia says it has already received purchase orders from every major hyperscaler, AI cloud provider, and system original equipment manufacturer (OEM). Management expects Vera Rubin to account for roughly 20% of Data Center revenue in Q3 and believes it could become the fastest product ramp in Nvidia's history. This suggests Nvidia is transitioning from its Blackwell platform to its next-generation AI architecture without the growth pause investors might normally expect during a major product cycle. Profitability remains exceptional, but this was one area where the report was less reassuring. Nvidia maintained a 75% gross margin in Q2, but management expects it to slip to roughly 74% in Q3 and bottom between 71% and 72% in Q4 as surging memory prices increase system costs. Nvidia expects margins to settle around 72%-73% in FY28, with planned price increases beginning to provide some relief early next year. Considering Nvidia's staggering revenue growth, these margins remain enviable. Still, investors should no longer assume that mid-70% gross margins are guaranteed as increasingly complex AI systems push component costs higher. Over the trailing twelve months (TTM), Nvidia’s 74% gross margin has impressively outpaced the S&P 500’s 53% average and has topped its Zacks Semiconductor-General Industry average of 72% Image Source: Zacks Investment Research Nvidia's balance sheet remains formidable. The company finished Q2 with roughly $99 billion in cash and marketable debt and equity securities, while generating $24.1 billion in operating cash flow during the quarter. However, Nvidia is deploying significant amounts of capital across its ecosystem. Non-marketable securities rose to more than $51 billion from $22 billion at the beginning of the fiscal year, while the company purchased $15.8 billion of equity securities during Q2 alone. Its supply and capacity commitments also surged from $119 billion last quarter to roughly $279 billion as Nvidia locks down memory and manufacturing capacity for future demand. That said, Nvidia appears to be finding ways to bring much deeper pockets into the AI buildout. Its partnerships with major investment firms Apollo Global Management APO), BlackRock BLK), Blackstone BX), Brookfield Asset Management BAM), Goldman Sachs GS) and KKR KKR) are intended to mobilize more than $500 billion of third-party capital for AI infrastructure, creating independent pools of financing for Nvidia customers. That could gradually shift more of the burden away from Nvidia's own balance sheet, although investors should continue monitoring its guarantees, strategic investments, and other commitments as the AI spending boom grows larger. Despite today's rally, Nvidia stock is still trading at just under 24X forward earnings following its impressive Q2 EPS beat. Furthermore, upward earnings estimate revisions after such a strong report and outlook could quickly make Nvidia’s valuation even more appealing. Notably, NVDA is trading near its decade-low forward P/E of 20X and at a nearly 50% discount to its 10-year median of 45X. Image Source: Zacks Investment Research And if you're wondering, NVDA’s return over the last decade is near a staggering 14,500% Image Source: Zacks Investment Research There is considerably more to like about Nvidia following Q2 earnings. The company crushed expectations, issued strong Q3 guidance, provided surprisingly bullish FY28 commentary, and offered concrete evidence that Vera Rubin is already becoming its next major revenue engine. Margin pressure and Nvidia's enormous financial commitments prevent the story from being completely risk-free, and investors don't necessarily have to chase a 7% one-day spike. Still, the rally appears fundamentally supported rather than simply driven by post-earnings enthusiasm. Most importantly, NVDA now sports a Zacks Rank #2 (Buy), reflecting a favorable earnings-estimate revision outlook. For long-term investors, Nvidia's valuation still looks surprisingly reasonable relative to its growth trajectory, making pullbacks particularly attractive and today's post-earnings rally difficult to bet against. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Blackstone Inc. (BX) : Free Stock Analysis Report BlackRock (BLK) : Free Stock Analysis Report KKR & Co. Inc. (KKR) : Free Stock Analysis Report Brookfield Asset Management Ltd. (BAM) : Free Stock Analysis Report Apollo Global Management Inc. (APO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

(Bloomberg) -- Wall Street is eagerly anticipating Nvidia Corp.'s (NVDA) earnings on Wednesday afternoon, not so much for what the numbers will say about the chip giant, but for what they mean to artificial intelligence investors and the market itself. Most Read from Bloomberg Lutnick's Intervention in Canada Talks Draws Praise, Blame Apple Gears Up to Launch Its First New Mac Mini in Two Years Xi Signals Defiance as US Threatens Sanctions Over Iran Help US Weighs More Trade Measures Against Canada After Retaliation Bessent's Mentor Druckenmiller Calls Bond Buying a Mistake "Nvidia is the best barometer for AI spending," said Rob Conzo, chief executive officer of the Wealth Alliance, which owns Nvidia shares in several portfolios. "It will help determine if hyperscalers are still accelerating, from an infrastructure perspective, or if they're becoming more disciplined." The company's shares have been on a wild ride this year, sinking through the winter, then soaring through the spring, and bouncing around all summer. They're coming off a seven-day losing streak, matching the longest since 2019, in which they lost 7.5%. And that follows a 19% leap from late July through mid-August. All told, Nvidia is up 14% in 2026, a decent showing but still a far cry from its past performance. At this time last year, the stock had gained 34%, and in 2024 it was soaring more than 150%. The reason is hardly a secret, with investors increasingly cautious about the durability of the AI trade with inflation remaining high, interest rates rising and geopolitical risks all over the place, whether it's the US's military and economic war with Iran or its trade war with Canada. The tech-heavy Nasdaq 100 Index suffered its worst month in more than a year in July, falling 6.6% as investors dumped the shares of companies exposed to the AI buildout amid concerns about how much longer the heavy spending would last. But since its July 29 trough, the index has regained much of that lost ground, led by memory and storage companies like Sandisk Corp. and chipmakers such as Marvell Technology Inc. Wall Street expects Nvidia to deliver stellar results for the fiscal second quarter, which ended July 31. Analysts project that revenue nearly doubled from a year ago, which would be the fastest pace in two years, as did net income, according to data compiled by Bloomberg. That, however, isn't what the market is focused on. Rather, investors want to hear what Chief Executive Officer Jensen Huang has to say about capital spending by its biggest customers, future demand and a spate of new financing deals that involve Nvidia. Price increases will also be top of mind after some of the company's customers were told that the cost of servers with its AI chips will rise more than 15% in some cases, due to surging memory costs. "This will be a very interesting report, but it isn't so much about the numbers," Conzo said. "The forward guidance discussions will be far more in view." Earlier this month, Nvidia said it's partnering with Wall Street firms including Goldman Sachs Group Inc., BlackRock Inc. and Apollo Global Management Inc. to provide $500 billion in financing for AI infrastructure. Nvidia also agreed to spend as much as $105 billion to back a data center campus in Ohio that will be leased by OpenAI. "They're going to need to discuss those two big partnerships or agreements in good detail and sort of calm the market's fears around the circularity of financing," said Shaon Baqui, a senior equity analyst at Janus Henderson, which holds a substantial position in Nvidia. The big questions from investors are how much of Nvidia's revenue is being driven by its own financing and if it's creating or bringing forward demand. Huang's comments alone likely won't be enough to resolve some of the issues the market is having with AI investments at the moment, according to Daniel Pilling, portfolio manager at Sands Capital Management, which owns the stock. "It's going to be a really important quarter for them, not because of what they're doing on the balance sheet, but what they're doing off the balance sheet," said Brian Mulberry, chief market strategist at Zacks Investment Management, which holds Nvidia shares. "It effectively makes Jensen Huang kind of like the pope of AI. He gets to bless any of these deals." Even with a market capitalization of more than $5 trillion, the biggest in the world, Nvidia's equity valuation has been steadily eroding this year. At roughly 19 times earnings expected over the next 12 months, the stock is close to the cheapest it has been since late 2018, before AI exploded and when the chipmaker's market value was less than $100 billion. "Nvidia isn't the most exciting part of the market, or even the AI trade, anymore," said Randy Hare director of equity research at Huntington National Bank, which owns the stock. "Right now the tightness is in the memory space, the optical area, energy. Momentum is shifting from semis to other parts of infrastructure, and from there it could shift to hyperscalers again." In terms of trading into the earnings, Nvidia shares haven't performed well after its results over the last few quarters, falling the day after five of its last six reports, according to data compiled by Bloomberg. The options market is pricing in a roughly 5% swing in either direction. Of course, the shares could get a boost from a strong report and forecasts that calm investors' nerves, potentially reinvigorating the broader AI trade. Wall Street will be listening for updates on Nvidia's Vera Rubin and Blackwell chip sales as well as its outlook for gross margins. "Their stock in my view is at a bit of a nexus, like a bit of a turning point," said Melissa Otto, head of technology, media and telecommunications research at Visible Alpha. "We're going to get a lot more visibility, hopefully, and commentary around Rubin and the performance of Blackwell." Tech Chart of the Day Top Tech Stories Meta Platforms Inc. and state attorneys general have discussed a possible mid-trial settlement of a blockbuster case accusing the company of deliberately designing Facebook and Instagram to addict teens, people familiar with the matter said. OpenAI said that its new Jalapeno chips performed better than Nvidia's current lineup during testing, underscoring the company's progress developing AI processors in-house. SoftBank Group Corp. is talking with investment banks about a potential $10 billion to $20 billion bond offering to help refinance a loan for its investment in US tech giant OpenAI, according to people familiar with the matter. Apple announced upgraded Mac mini and Mac Studio desktop computers, giving the in-demand machines major processor upgrades. Earnings Due Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek The Diamond Industry's Old Guard Wants You to Buy 'Natural' Plus-Size Clothes Are Disappearing at Retailers in GLP-1 Era Drones, Balloons and Sound Waves: New Ways to Fight the World's Fires Moldy Peanuts Can Be Deadly. The Solution Is More Mold New York's Israeli Restaurants Are Doing Better Than You Might Think ©2026 Bloomberg L.P.

It has been about a month since the last earnings report for SEI Investments (SEIC). Shares have added about 11.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is SEI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. SEI Investments’ second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.Results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport.Results excluded certain non-recurring items. After considering these, net income attributable to SEI Investments was $195.7 million, down 13.8% from the year-ago quarter. Total quarterly revenues were $641.6 million, up 14.7% year over year. The rise was driven by higher asset management, administration and distribution fees, as well as information processing and software servicing fees. The top line beat the Zacks Consensus Estimate of $637.9 million.Total expenses were $444.6 million, up 8.2% year over year. The increase was due to a rise in almost all cost components, except for consulting, outsourcing and professional fees, facilities, supplies and other costs, and depreciation charges.Operating income (GAAP) rose 33% year over year to $197 million.As of June 30, 2026, AUM was $606.7 billion, reflecting a rise of 17.2% from the prior-year quarter. Client assets under administration (AUA) were $1.36 trillion, up 19.7%. Client AUA did not include $14.3 billion related to Funds of Funds assets reported as of June 30, 2026. In the reported quarter, the company bought back 1.3 million shares for $112.4 million at an average price of $86.92 per share. It turns out, fresh estimates have trended upward during the past month. Currently, SEI has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, SEI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. SEI is part of the Zacks Financial - Investment Management industry. Over the past month, BlackRock (BLK), a stock from the same industry, has gained 9.9%. The company reported its results for the quarter ended June 2026 more than a month ago. BlackRock reported revenues of $7.08 billion in the last reported quarter, representing a year-over-year change of +30.6%. EPS of $13.91 for the same period compares with $12.05 a year ago. For the current quarter, BlackRock is expected to post earnings of $14.24 per share, indicating a change of +23.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for BlackRock. Also, the stock has a VGM Score of F. 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 SEI Investments Company (SEIC) : Free Stock Analysis Report BlackRock (BLK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Securitize Holdings? Here are five stocks we like better. Q2 revenue fell 5% year over year to $14.4 million, as lower tokenization revenue offset 3% growth in asset servicing. Securitize lowered its 2026 revenue outlook to $70 million–$80 million, citing slower-than-expected crypto, stablecoin and real-world-asset market growth. Tokenized assets under management reached $4.2 billion at quarter-end and exceeded $5 billion in early Q3, while quarterly transaction volume rose 170% sequentially to $5.3 billion. The company is targeting growth in tokenized Treasuries, equities, collateral and trading infrastructure through partnerships including BlackRock, the NYSE and major exchanges. Higher operating expenses contributed to an adjusted EBITDA loss of $6.0 million and a GAAP net loss of $21.7 million, compared with a $6.1 million loss a year earlier. Following its business combination, Securitize had approximately $350 million in net cash and liquid securities and no debt. Securitize (NYSE:SECZ) reported second-quarter 2026 revenue of $14.4 million, down 5% from a year earlier, as lower tokenization revenue offset continued growth in asset-servicing revenue. The company, which recently became publicly traded, also reduced its full-year revenue outlook to $70 million to $80 million from a prior expectation tied to $85 million of contracted or AUM-based revenue. Chairman and Chief Executive Officer Carlos Domingo used the company’s first public earnings call to outline Securitize’s strategy to build regulated infrastructure for tokenized securities, including transfer-agent, fund-administration, broker-dealer and alternative-trading-system capabilities. → Lumentum Just Delivered the AI Growth Investors Wanted “The question is no longer whether capital markets move on-chain. It’s how fast and which companies will build the regulatory infrastructure that enables that transition,” Domingo said. Securitize said it ended the second quarter with $4.2 billion of tokenized assets under management and surpassed $5 billion in early in the third quarter. Domingo said the company was the only tokenization platform with more than $4 billion of assets at the end of the quarter and had more than seven individual assets above $100 million in AUM. → Ryman Checks Into a $1.38B Hospitality Upgrade The company reported $5.3 billion of transaction volume during the second quarter, up 170% sequentially. Domingo said the prior year’s fourth quarter included an unusually large amount of peer-to-peer activity from one customer, but transaction volume otherwise has grown steadily. Assets under administration in Securitize’s fund-services business remained around $24 billion for the past three quarters, management said. The business had been affected by declining digital-asset prices and fund closures following the October 2025 crypto-market downturn, but the company said its administration base has remained stable despite continued weakness in the broader crypto market. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal Domingo said the company’s current monetization centers on asset creation and servicing, but it sees longer-term opportunities in trading, on- and off-ramping, lending and collateral activity involving tokenized assets. Securitize highlighted tokenized Treasuries as a key area of growth. Domingo said the tokenized-Treasury market has expanded to more than $16 billion across 87 products, from less than $1 billion when BlackRock’s BUIDL fund launched in March 2024. According to the company, Securitize-supported Treasury products account for approximately 20% of the market. The company also discussed BlackRock’s Daily Reinvestment Stablecoin Reserve Vehicle, or BRSRV, a registered fund tokenized by Securitize. Management said the fund is designed for use as a stablecoin reserve asset and supports daily interest reinvestment through blockchain transactions. In addition, Securitize announced a partnership with Atlas Capital involving a planned USFi token, which would represent a strategy combining Treasuries, gold, real assets and strategic commodities. Domingo said the initiative marks Securitize’s first collaboration under Dubai’s VARA regulatory framework. Securitize has also expanded integrations intended to make BlackRock’s BUIDL usable as collateral. The company cited integrations with Crypto.com, Deribit, Binance and OKX, with the latter using Standard Chartered’s custody solution. It also discussed work with DeFi protocols and the release of its Vault Registrar technology, which management described as a smart-escrow structure for collateral. Management identified public equities as another major opportunity, noting that U.S. equity and ETF markets exceed $100 trillion while tokenized equities currently represent about $2 billion. Domingo said Securitize favors issuer-sponsored tokenization, in which a token represents the underlying share and preserves shareholder rights, rather than synthetic offshore structures or tokenized claims held through intermediaries. The company cited partnerships with transfer agents Computershare and Continental Stock Transfer, as well as a relationship with the New York Stock Exchange. Securitize said it was selected as a design partner, transfer agent and tokenization partner for the NYSE’s planned digital alternative trading system, which is intended to support 24/7 trading and instant settlement of tokenized equities and ETFs. Securitize also partnered with Jump Trading, which is serving as a market maker for tokenized equities beginning with Securitize’s own stock. On its NYSE listing day, the company made tokenized SECZ shares available on Avalanche and Solana for eligible investors, with USDC atomic-swap trading and Jump Trading providing market-making services. During the question-and-answer session, Domingo said tokenized equities could create a greater transaction-revenue opportunity than tokenized funds because equities are more liquid. He said fund tokenization is more focused on issuance, AUM and servicing, while equities could generate more trading-related monetization. Chief Financial Officer Francisco Flores said tokenization revenue totaled $7.9 million in the second quarter, down 12% year over year, primarily because the prior-year period benefited from a larger number of new protocol launches. Asset-servicing revenue increased 3% to $6.96 million. First-half revenue rose approximately 16% to a record $33.9 million, despite the quarterly decline. Total operating costs and expenses were $24.1 million, up 56% year over year. Compensation and benefits rose $2.5 million to $10.5 million, reflecting headcount growth and senior hires. SG&A increased $4.7 million to $8.2 million, including about $1.9 million in one-time public-listing costs. Adjusted EBITDA was negative $5.95 million, compared with positive $1.8 million a year earlier. GAAP net loss widened to $21.7 million from $6.1 million, while diluted loss per share was $2.37 versus $0.72. Flores said the quarter also included $11.7 million of non-cash expense related to the fair value of complex financial instruments, including SAFE agreements, option liabilities and derivative liabilities. He said the company does not expect material future impacts from those business-combination-related items. Following the July 1 closing of its business combination, Securitize had approximately $350 million of net cash and liquid securities on a pro forma basis and no debt, Flores said. About $80 million of convertible notes converted into equity at closing, and the company does not expect material interest expense in the third quarter. Securitize lowered its 2026 revenue outlook as crypto, stablecoin and real-world-asset markets have grown more slowly than management anticipated when it issued its previous outlook in November 2025. Flores said the overall crypto market was below $2.2 trillion, compared with the company’s prior expectation that it would reach about $5 trillion by year-end 2026. The stablecoin market remained near $300 billion, while the broader RWA market stood at roughly $38 billion. The company had previously targeted $9 billion of tokenized AUM by the end of 2026. It now has about $5 billion in August, but management said it continues to see demand from asset issuers and cited partnerships with the NYSE, Computershare and Continental as potential growth drivers. Flores said the midpoint of the revised $70 million to $80 million revenue range would still represent growth of more than 20% for the year. He added that asset-servicing revenue should remain a relatively stable recurring revenue source, while tokenization revenue is more project-based and subject to the timing of integrations and product launches. Securitize is a financial technology company that provides a platform for issuing, managing, and trading tokenized securities and other digital assets. The company focuses on helping issuers digitize assets on blockchain-based infrastructure while giving investors and intermediaries tools to support compliance, transferability, and recordkeeping. Its products and services are designed for use across the lifecycle of digital securities, including issuance, investor onboarding, cap table and ownership management, and secondary trading support through regulated market infrastructure. 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 "Securitize Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

AI infrastructure companies have been having a ball this week. It started with a bang after bellwether Nvidia (NVDA) essentially turned its GPUs into an asset class with a $500 billion war chest and some of the leading asset managers of the world, including BlackRock (BLK), Blackstone (BLX), and KKR (KKR). Joining the party with Super Micro Computer (SMCI) and the neocloud company Nebius (NBIS) is the latter's competitor, CoreWeave (CRWV). The Mike Intrator-led necloud company's shares were down about 30% from its last earnings report. However, with the latest Q2 2026 numbers, CRWV stock rallied by 19.3% in yesterday's trading session. Founded in 2017 as a cryptocurrency mining business, CoreWeave occupies the vaunted position of being one of the foremost AI infrastructure companies in the world. Now, CoreWeave provides enormous amounts of specialized computing power to companies developing and running AI. It operates data centers containing large clusters of Nvidia GPUs, with the overall objective of making thousands of GPUs behave like a single high-performance computing system. It is also concentrating on building a software stack, with its capabilities launching in 2026 to connect training, inference, observability, reinforcement learning, and autonomous agent improvement. A $20 Billion Reason Why Intel Stock Is in Focus Marvell Technology (MRVL) Stock Might Offer a Quick Bounce Before Earnings Jefferies' Latest Warning on Palantir Sends Clear Message: Stay Cautious on PLTR Stock Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Valued at a market cap of $40.4 billion, CRWV stock is up 50% on a year-to-date (YTD) basis. And from what was witnessed yesterday, the second-quarter results may only extend this upmove. However, will it be just smooth sailing, or does the Q2 print have some obvious shortcomings? Let's find out. In Q2 2026, CoreWeave's revenue stood at $2.6 billion. Not only did this mark a YoY growth of 116.7%, but it was also a beat on the Street's estimate. However, as one goes down the income statement, the picture gets a bit murkier despite all the optimism around backlog, capex, and revenue guidance. Operating income margins slid to 5% from 16% in the year-ago period, while the company reported a net loss per share of $1.14 per share. Although this was lower than the consensus estimate of a loss of $1.47 per share, it almost doubled from the previous year's figure of a loss of $0.60 per share. Notably, this was the third consecutive quarter of losses widening for the company. For Q3, CoreWeave expects revenue to be between $3.45 and $3.60 billion, the midpoint of which would denote another impressive growth rate of 159.2% from the prior year. Meanwhile, analysts are expecting the same to be $3.54 billion. Notably, an increase in capex guidance also did not put a dent in the share price, as it was increased for the full year. The company now expects capex to be in the range of $35 and $39 billion, up from $31 and $35 billion earlier. In terms of backlog, the metric was at $104 billion as of June 30, 2026. This denoted an almost 3.5x growth from the year-ago period, with the company revealing (almost flexing) that this did not include another $25 billion in new customer commitments. Moreover, management noted that newly signed customer agreements in the quarter delivered terms that were five to ten percentage points more favorable than those secured in the prior period. When paired with the ongoing production ramp, this improvement is generating meaningful operating leverage. Positive signs emerged on the cash flow front as well, with net cash from operating activities for the quarter coming in at $679 million, compared with an outflow of $251 million in the prior year. Overall, CoreWeave ended the June 2026 quarter with a cash balance of $5.5 billion. However, this was less than the company’s short-term debt levels of about $8.1 billion. Further, CoreWeave now expects to end the calendar year with an active power capacity of 1.85 GW, up from 1.70 GW projected earlier, as CEO Intrator revealed that CoreWeave "remain firmly on track to reach at least 8 gigawatts by 2030." When compared to the previous year, the active power capacity is up by 219.15%, while contracted power and data centers at 3.7 GW and 51 represent jumps of 68.2% and 54.5%, respectively. Inclusion in the Nasdaq-100 Index ($IUXX) will come as a boost for the company's stock, with major passive flows expected following the inclusion. Finally, coming to valuation, CRWV stock trades at reasonable levels. Its forward P/S and P/CF are at 3.90 and 5.65, compared to the sector medians of 3.42 and 20.65, respectively, with forward earnings metrics not applicable due to its lack of profitability. Overall, analysts remain cautiously optimistic about CoreWeave and have assigned a consensus rating of “Moderate Buy” for CRWV stock, with a mean target price of $139.85. This denotes a potential upside of about 30% from current levels. Out of 36 analysts covering the stock, 22 have a “Strong Buy” rating, one has a “Medium Buy” rating, 12 have a “Hold” rating, and one has a “Strong Sell” rating. On the date of publication, Pathikrit Bose 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

Circle Internet Group, Inc. CRCL used its second-quarter earnings call to put Arc at the center of its next growth phase, with management framing the blockchain network as a major platform opportunity ahead of its Sept. 16 mainnet launch. The company also raised its 2026 other-revenue outlook sharply. Earnings of $0.18 per share topped the Zacks Consensus Estimate of $0.16, while total revenues and reserve income of $701.3 million came in below the $741.8 million consensus estimate. Circle Internet Group, Inc. price-consensus-eps-surprise-chart | Circle Internet Group, Inc. Quote Co-founder, chairman and chief executive officer (CEO) Jeremy Allaire said Arc already has more than 100 ecosystem and institutional builders, with BlackRock and DTCC among the major partners preparing integrations around tokenized assets and settlement. A Goldman Sachs analyst asked why Circle was prioritizing Arc over additional blockchain partnerships. Allaire said Arc represents one of the company’s largest opportunities and could become a broad operating-system layer for financial and economic activity. Chief financial officer (CFO) Jeremy Fox-Geen said the shift carries near-term tradeoffs. Other revenues declined $8 million sequentially as blockchain revenue moderated and Circle deliberately directed resources toward Arc. Fox-Geen raised 2026 other-revenue guidance to $310 million-$330 million from $150 million-$170 million, with Arc driving the increase. The CFO said Circle completed a $242 million ARC Token presale in Q2 and expects to recognize $180 million in 2026 as product milestones are achieved. The remaining product portfolio is expected to contribute $130 million to $150 million. CRCL also lifted its 2026 revenue-less-distribution-cost margin outlook to 41.7-43.7% from 38-40%. Adjusted operating-expense guidance remained $570 -$585 million, with management expecting spending near the high end. USDC ended Q2 with $73.3 billion in circulation, up 19% year over year, while average circulation reached $76.5 billion. Onchain transaction volume rose 151% to $14.8 trillion. A Citi analyst pressed management on whether competing distribution models could pressure Circle’s economics. Allaire said Circle already has more than 150 distribution agreements and can structure additional arrangements alongside Coinbase where partners can materially expand USDC adoption. Fox-Geen said the Hyperliquid arrangement had minimal Q2 impact because migration ramped late in the quarter, with the financial effect expected to begin in Q3. At quarter end, about 90% of Hyperliquid’s USDC was on Coinbase’s platform and 10% on Circle’s. Allaire said Circle Payments Network reached $14.7 billion in annualized trailing-30-day payment volume at quarter end, up 76% sequentially, with 175 financial institutions enrolled. By July 31, annualized payment volume had climbed to $23 billion. Allaire said the priority has been scaling the network, but Circle plans to begin monetizing CPN in the second half of 2026. The CEO also said CPN and related payment products now reach more than 58 countries. Management positioned payments as one of three platform pillars alongside digital assets and Arc-based developer infrastructure. Allaire said 99.3% of x402 agent-payment volume settles in USDC, while Circle’s Agent Stack marketplace has more than 900 paid services. A Clear Street analyst asked when agentic commerce could become more meaningful financially. Allaire said the second-half roadmap centers on agent identity, automated discovery, reputation systems and tools that let agents earn from services. A Needham analyst asked about Circle’s competitive position in x402. Allaire, who noted Circle was an early design partner, said growing agentic usage should support USDC transaction activity while also driving adoption of Arc infrastructure. Management’s tone remained confident around Arc, USDC distribution and payments expansion, while acknowledging softer digital-asset markets and lower reserve yields as near-term constraints. Fox-Geen maintained Circle’s multi-year 40% USDC circulation growth CAGR framework and said the company intends to keep investing in the platform. He also ruled out near-term quarterly dividends, favoring balance-sheet capacity for growth investments. CRCL carries a Zacks Rank #3 (Hold). Its Growth Score of B is the strongest style reading, while the Value Score of D is weaker and the Momentum and VGM Score of C each sits in the middle of the grading scale. The combination does not carry the stronger signal associated with Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks paired with an A or B Style Score. The Zacks Rank can change as earnings estimates are revised following the just-reported results. 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 Circle Internet Group, Inc. (CRCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research