NVDA

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. Achieved a sixth consecutive quarter of double-digit revenue growth, driven by a 'flywheel' effect where operational outperformance leads to rapid market share gains from traditional BPO competitors. Surpassed the $100 million annual revenue target for the HealthTech vertical, reaching $114 million through purely organic growth and expansion with large payers and specialty providers. Formalized a strategic partnership with Sierra AI to deploy AI agents that achieve resolution rates exceeding 20% to 40% while maintaining customer satisfaction scores on par with or exceeding those of human agents. Demonstrated a 'land and expand' model where leading with AI solutions (e.g., BJ's Wholesale) serves as a Trojan horse to subsequently win traditional human agent business. Leveraged a world-class employee net promoter score of 82 to create a competitive moat, asserting that high employee engagement directly correlates to the company's ability to outperform peers operationally. Successfully transitioned the perceived threat of AI into a growth vector by using AI agents to capture previously unhandled call volume and convert it into incremental sales opportunities for human agents. Guidance for FY27 assumes 9% to 11% revenue growth, supported by a strong pipeline in HealthTech and the rapid deployment capabilities of AI agent solutions. Management expects adjusted EBITDA margins to return to expansion in Q1 FY27 following temporary margin pressure from new client implementation costs and geographic work shifts. Anticipates that AI agent deployments will reach full scale significantly faster than traditional human agent ramps, potentially shortening the timeline from contract win to revenue recognition. Strategic focus remains on shifting delivery to high-margin offshore regions (currently 50% of revenue) and expanding digital/omnichannel services which now represent 82% of total revenue. Normalized tax rate is projected to stabilize between 20% and 22% for the coming year, following one-time discrete benefits in the current period. Recorded $2 million in lease termination and severance expenses related to a strategic structural shift of work from nearshore to offshore delivery centers. Noted a temporary headwind from higher fuel prices impacting utility and transportation expenses, particularly within offshore operations. Exited 'emerging growth' status after five years as a public company, initiating the SOC certification process for financial reporting and disclosure controls. Renewed revolving credit facilities with HSBC through October 2029, providing $76 million in total capacity to support growth initiatives. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that AI is not cannibalizing revenue but rather differentiating IBEX from 'traditional' BPOs, allowing them to win human agent market share while deploying AI agents. AI agents allow for immediate scale (20-40% of volume) that would otherwise take months to hire and train on the human side. The Q4 rate was lower due to a favorable resolution of an uncertain tax position; management explicitly guided to a 20% to 22% range for FY27. HealthTech growth is being fueled by both large payers and specialty niches like non-emergency medical transportation. Retail and e-commerce growth is being driven by 'disruptive' low-price markets like Pakistan, where IBEX is taking share from incumbents through superior performance.

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. Achieved a third consecutive quarter of profitability despite a 9% sales decline, driven primarily by significant tariff recoveries and prior cost-reduction initiatives. Management noted that while tariff recoveries were favorable, they do not fully offset the $10.3 million in cumulative pretax costs and administrative burdens incurred in fiscal 2026. Hooker Branded margins were pressured by a seasonal shift toward e-commerce and elevated promotional activity intended to maintain consumer engagement during the summer. Domestic Upholstery performance benefited from lower imported material costs and improved overhead absorption, offsetting lower sales in upscale leather and custom fabric. Operational efficiency was bolstered by the sustained impact of $17.5 million in annualized fixed cost reductions implemented in the prior year. Supply chain challenges, specifically key SKU out-of-stocks caused by extended lead times from Asia, began to ease by the end of the second quarter. The 'All Other' segment experienced a sharp revenue decline due to project timing in the hospitality business, with the majority of first-half shipments concentrated in Q1. Management expects promotional activity to normalize in the second half of the fiscal year, citing positive trends observed in July as a baseline for recovery. The Margaritaville brand launch is expected to build momentum through fiscal 2028, with commitments for 100 in-store galleries and 10 freestanding retail stores providing new market share opportunities. Guidance assumes continued weakness in housing turnover and big-ticket discretionary demand, with no meaningful near-term improvement expected in the macro environment. The company anticipates improved year-over-year results in the second half, supported by a 6.2% increase in consolidated backlog and a leaner cost structure. Capital allocation will remain balanced between share repurchases and dividends while preserving flexibility for strategic investments. Tariff recoveries significantly impacted results but were partially offset by $0.6 million in customer credits and $0.5 million in settlement charges related to a prior divestiture. Inventory levels were reduced by $5.3 million since fiscal 2026 year-end, reflecting disciplined working capital management. Management highlighted that the administrative burden and incremental costs of tariffs, such as legal fees and increased customs bond costs, remain unrecovered. Key SKU out-of-stocks in the Hooker Branded segment served as a significant headwind, though supply chain constraints for imported upholstery have largely resolved. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that unpredictable lead times from Asia created a significant headwind for the Hooker Branded segment. July results indicated that these supply challenges have been largely mitigated, providing a more positive outlook for the second half of the year. Management declined to provide specific revenue figures but noted that the majority of the impact will occur in the second half of the year as galleries open. The capital expenditure required for the 100 gallery commitments is not expected to be significant to the company's overall capital allocation strategy. Management expressed high confidence that elevated promotional levels will not trend forward, as the summer imbalance between promotions and regular business has stabilized. The company expects a return to normalized pricing and mix in the second half of the fiscal year. Early feedback from retail partners regarding Labor Day was described as reasonably good. Management noted a sense of optimism among retailers as the industry transitions from the seasonally slow summer into the fall selling season.

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. Performance growth was driven by a strategic shift toward premium products, exclusive content, and higher-valued services across physical music, home entertainment, and collectibles. Management attributes the 26% midyear growth in U.S. physical music revenue to a consumer shift toward 'ownership fandom,' where physical products serve as a tangible connection to artists and franchises. The company is successfully positioning itself as a scaled specialist for major studios like Paramount and Amazon MGM, who are consolidating physical media operations to leverage Alliance's manufacturing, inventory, and retail execution infrastructure. Collectibles growth of 45% reflects a pivot toward licensed premium products with higher average selling prices and better margin profiles compared to standard distribution items. Operational efficiency is being enhanced through a 'prudent' capital expenditure model, where investments in AutoStore automation and AI tools are triggered by realized volume growth rather than speculative capacity. The acquisition of Endstate Authentic is central to a new strategy of extending participation beyond the initial sale by creating digital product identities and authentication for high-value collectibles. Fiscal 2027 strategy focuses on capturing a full year of Amazon MGM distribution and accelerating the expansion of owned brands like Handmade by Robots to capture higher margins. Management expects the launch of Grand Theft Auto VI to be a significant cultural event, driving multi-category demand across gaming hardware, accessories, and physical music soundtracks. The new AI-enabled WebAMI B2B platform, scheduled for a Q1 2027 launch, is designed to improve retail buyer productivity through cross-category search and automated workflows. Financial priorities for the coming year include converting a greater share of earnings into operating cash flow by moderating working capital growth and improving inventory productivity. The company intends to build a peer-to-peer marketplace for authenticated collectibles, utilizing NFC technology to maintain a relationship with the product throughout its secondary lifecycle. Fiscal 2026 results included a $7.8 million noncash write-off of a historical vendor rebate receivable following the cessation of operations by a tape maker counterparty. Interest expense declined 28% following a successful credit facility refinancing, which improved the average effective interest rate from 9.2% to 6.1%. The company repaid $10 million of related party borrowings during the year to simplify its financing structure and improve balance sheet efficiency. Management secured the majority of expected tariff refunds during the June quarter, primarily related to the Handmade by Robots product line. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that labels and retailers had previously 'forgotten' about CDs, leading to poor in-stock percentages that are now being corrected. Increased store shelf space and a focus on keeping classic albums in stock are meeting a renewed consumer demand for physical ownership. Alliance is focusing on releasing existing catalog titles in new premium formats, such as 4K Ultra HD and steelbooks, which were previously unavailable. Management believes their expansive sales channel makes them an attractive licensing partner for other studios looking to maximize catalog value. Current infrastructure has remaining capacity; future CapEx will prioritize automation technology to reduce labor costs rather than expanding physical building footprints. The company follows a 'sales-first' investment model, only expanding capacity once volume growth is secured. Management believes the DVD market is nearing a bottom, with rates of decline slowing as consumers grow frustrated with the complexity of streaming platforms. They anticipate a potential turnaround in 2027 or 2028 as DVD follows the 'ownership' trend seen in vinyl and CDs.

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 attributed the 13% year-over-year revenue decline to a strategic shift toward cash rewards in Singapore and Hong Kong, which are deducted from revenue under IFRS rather than recorded as costs. The company prioritized margin quality and conversion efficiency over chasing lower-yielding volume, resulting in a 9 percentage point expansion in approval rates despite softer application volumes. Hong Kong served as a resilient anchor for the group, with segment profit surging to $500 thousand in the first half of the year driven by a 21% increase in total transaction volume. Singapore operations achieved a significant turnaround to a $200 thousand segment profit in the first half, despite reported revenue declines, by focusing on higher-margin conversions and disciplined customer acquisition. AI transformation initiatives significantly reduced technology costs by 50% year-over-year through platform consolidation and the automation of engineering workflows. The product mix shifted toward wealth and insurance, which grew 11% year-over-year in the first half, validating a diversification strategy intended to reduce reliance on the credit card vertical. Management emphasized that the $1.2 million net loss for the quarter was primarily driven by foreign exchange swings rather than a change in the underlying operating trajectory. The company plans to reaccelerate organic traffic by structuring data for next-generation AI search engines and traditional SEO to capture high-intent users at lower acquisition costs. Growth in the second half of 2026 is expected to be driven by the launch of a home loan comparison category in Singapore and the expansion of the life insurance marketplace in Hong Kong. Management intends to roll out a rebuilt member dashboard and an AI-assisted natural language search experience in Q4 to increase customer stickiness and facilitate cross-selling. The in-house voucher management system will be extended to Singapore and additional reward types to further eliminate third-party fees and improve customer delivery times. Strategic actions are being taken to review and stabilize volume in Taiwan on a more profitable basis amid dynamic market conditions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. A $3.1 million swing in foreign exchange differences was the primary driver for the shift from net income in the prior year to a net loss this quarter. First-half constant FX EBITDA results include approximately $1.6 million in nonrecurring legal and professional fees that are excluded from adjusted EBITDA. The company transitioned to an asset-light entry for Singapore home loans via a partnership with Redbrick, intentionally avoiding underwriting and balance sheet risk. Management noted that while employee benefit expenses rose 6%, this was a targeted investment to support higher-margin verticals and AI capabilities.

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 attributed the quarter's performance to a resilient operating model where aggressive cost savings and profitable e-commerce growth successfully offset a challenging top-line environment. Identical sales were significantly impacted by a Cyclospora outbreak in the final period, which management noted cost the company approximately 35 basis points in total company IDs without fuel. The company is executing a multi-year 'customer value plan' focused on simplifying promotions and improving shelf-price perception to earn larger baskets and more frequent trips. Management highlighted a strategic shift in leadership, recruiting new talent in people operations, e-commerce, and store operations to drive more consistent execution across all divisions. Operational improvements reached internal milestones, with on-shelf availability hitting an all-time high and 'pickup perfect' orders reaching their best-ever performance levels. Strategic focus remains on 'Our Brands' (private label), which saw penetration increase by 50 basis points as customers sought value without compromising on quality. Management emphasized that 'savings fund value,' asserting that every dollar removed from the cost structure is reinvested into the customer experience to ensure long-term sustainability. Full-year identical sales guidance was lowered to 0.2%–0.8%, reflecting first-half results and anticipated headwinds from the Inflation Reduction Act affecting pharmacy sales in the fourth quarter. The company expects the pharmacy headwind to accelerate to approximately 150 basis points in Q4 as new high-cost drugs are added to formularies, though this is expected to have no impact on profit. Management assumes fuel margins will be softer in the second half of the year compared to the first half, citing high volatility in energy markets. The outlook for the fourth quarter includes caution regarding year-over-year comparisons as the company cycles significant weather-related benefits and the launch of third-party delivery partnerships from the prior year. The planned acquisition of Giant Eagle remains on track for a 2027 close, with management focused on the regulatory review process to expand into new geographies. Pharmacy sales faced a 140-basis-point headwind from the Inflation Reduction Act and a 60-basis-point drag from the ongoing shift from branded to generic prescriptions. Higher shrink, particularly in fresh departments, acted as a margin headwind, partially exacerbated by the Cyclospora outbreak late in the quarter. The company resumed share repurchases, totaling approximately $1.2 billion in the first half, with plans to complete the remaining $800 million authorization by year-end. Management noted that while they received modest tariff refunds, these were not a meaningful driver of results as they were fully reinvested into customer value. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they are funding price investments on a nearly 1-for-1 basis through operational savings, focusing on improving 'white label' basic shelf prices. They emphasized that this is a multi-year 'glide path' rather than a rapid shift, intended to balance value perception with the need to protect margins. Kroger expects inflation to remain below CPI but anticipates more pressure in the second half of the year due to rising diesel and freight costs. Management stated they will act as the 'customer's agent' in negotiations, requiring full justification for supplier price increases and leveraging their private label portfolio as a competitive alternative. Management clarified that the 265-basis-point total headwind to IDs included pharmacy impacts, egg deflation, and the produce-specific Cyclospora outbreak. Despite these pressures, they maintained that market share gaps against traditional grocery competitors remained stable or widened. The company delivered its second consecutive quarter of profitable e-commerce growth, driven by a 20% increase in adjusted e-commerce sales and a 24% rise in retail media. Management attributed media success to better collaboration between merchandising teams and expanded advertising inventory.

Shares of Chewy (NYSE:CHWY) fell 11% on Wednesday after the online pet-supplies retailer reported disappointing results in its second-quarter earnings report. Chewy posted revenue growth of 7.3% to $3.33 billion, which was slightly ahead of estimates at $3.32 billion. However, excluding its acquisitions of SmartPak and Modern Animal, revenue was up just 5.7%. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Further down the income statement, gross margin held steady at 30.4%, and adjusted earnings per share improved from $0.33 to $0.36, which matched estimates. Image source: Getty Images. In addition to meeting expectations, Chewy also raised its guidance for the full year. The company now sees revenue of $13.46 billion-$13.57 billion, representing 6.8%-7.7% growth. It also raised its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin guidance from 6.6%-6.8% to 6.7%-6.8%. The guidance hike was primarily due to the strength of the recent acquisitions, rather than the core business. However, the raised guidance seemed to be overshadowed by comments on the earnings call indicating that consumer demand was still sluggish, as management noted continued pressure on discretionary attachment and premiumization. Pet products are generally thought of as a consumer staples category, as they're a need rather than a want, but Chewy's growth potential lies in its ability to sell add-ons like toys or coax customers into spending more money on premium pet food, as well as adding new customers. Its percentage of sales from autoship continues to grow, reaching 84.6% in the quarter, which is in line with the company's strategy, but that leaves less room for one-off purchases that can drive growth. The pet industry has struggled since the pandemic, as the surge in pet adoptions led to an unsustainable boom in the industry, and growth rates have significantly slowed since then. Chewy was valued like a growth stock at one point, but it seems its heady days of market share gains and rapid growth have faded, and the category it competes in is mature. It's hard to fault the business for doing anything wrong in the quarter, and the moves to diversify with those two acquisitions make sense, but it seems like the stock price is still correcting from earlier expectations of higher growth. The current concerns about inflation and weak consumer discretionary spending haven't helped either. As the chart below shows, Chewy has delivered years of underwhelming stock performance and slowing growth. CHWY data by YCharts With the stock down 50% from its 52-week-high, the best argument for buying Chewy right now may be that the stock is cheap. Based on its adjusted earnings per share consensus of $1.52 for the year, Chewy trades at a forward P/E of just 13. However, that forecast is propped up by adjustments like share-based compensation, which is on track for $300 million this year. On a generally accepted accounting principles (GAAP) basis, the consensus calls for just $0.79, giving it a more average P/E ratio of 25. At this point, Chewy is starting to resemble a slower-growth consumer staples stock like Procter & Gamble, rather than the disruptive growth stock it was once seen as. Given that, I think the stock is best avoided, at least until the company can deliver faster organic growth. There are better buys elsewhere. Before you buy stock in Chewy, 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 Chewy 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 $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!* 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 September 10, 2026. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy. The Motley Fool has a disclosure policy. Is Chewy a Buy After Its Latest Earnings Report? was originally published by The Motley Fool

CoreWeave dropped 5% after Burry closed his short without triggering a rally, and the bear case has since shifted from demand concerns to its 8.94 debt-to-equity ratio. NVIDIA confirmed Vera Rubin racks in full production at CoreWeave and Oracle, with Jensen Huang declaring AI has reached its inflection point. Cloudflare's asset-light model kept it nearly flat while leveraged peers sold off, posting 35.9% revenue growth without borrowing to build data-center capacity. Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Oracle didn't make the cut. Enter your email to see the names that beat ORCL. The report is free. Enter your email and see if any of your stocks made the cut. Shares of CoreWeave (NASDAQ:CRWV) are down 5% to $90.27 midday Thursday, sliding even after Michael Burry, the investor known for The Big Short, closed his highest-profile bearish bet against the AI infrastructure complex. The move stands out because that kind of catalyst usually lifts a heavily shorted AI name. The failure to rally is itself the signal. Oracle (NYSE:ORCL) stock is down 3% to $157.43 heading into tonight's fiscal Q1 2027 earnings release. Meanwhile, Cloudflare (NYSE:NET) shares are trading steady, off just 0.2% to $313.57. The cloud group is separating around balance-sheet risk today. The First Trust Cloud Computing ETF (NASDAQ:SKYY) is down 0.1%. For broader tech-sector context, the Invesco QQQ Trust (NASDAQ:QQQ) is off by 0.74%, so CRWV and ORCL are down more than the NASDAQ 100. The Burry news was widely expected to lift AI-exposed names. NVIDIA (NASDAQ:NVDA) was the underlying, and the position was the market's most visible AI-related short. Through his firm Scion Asset Management, Burry closed his December put options on the chipmaker without rolling into later contracts, and he has said the exit shouldn't be read as optimism. Free Report, Just Released Why Didn't ORCL Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And ORCL didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → CoreWeave Chief Executive Michael Intrator stated on Wednesday that the company's newer data-center deals carry more operating margin than earlier ones and that "the deal-level economics are excellent," because customers are paying more for AI compute faster than input costs are rising. The demand data supports him: CoreWeave's Q2 2026 revenue rose 112.3% year over year to $2.58 billion, with revenue backlog around $104 billion. The bear case is a balance-sheet argument. 24/7 Wall St. calculates that CoreWeave carries a debt-to-equity ratio of 8.94, and interest expense reached $640 million in Q2 against free cash flow of -$5.74 billion after $6.42 billion in capex. Supplier data still points to intense end demand. NVIDIA's most recent report placed Vera Rubin racks in full production at CoreWeave, Google Cloud, Microsoft (NASDAQ:MSFT) Azure, Oracle Cloud Infrastructure, and Nebius (NASDAQ:NBIS); CEO Jensen Huang stated that "AI has reached its inflection point" and that compute is revenue (we profiled seven of the picks-and-shovels suppliers powering that buildout, beyond the chipmakers, in a free report here). Oracle reports its fiscal Q1 2027 results after today's close. Julia Spina, Head of Research, North America at IG Group, noted that options are pricing in an 11% move, or $18 per share, around the report, and calls are trading richer than puts. That's the reverse of the usual pattern, with call premiums bid above puts into the print. Funding is a major concern for Oracle. Guggenheim flagged that Oracle plans to raise $40 billion in fiscal 2027 for its AI buildout, its credit-default swaps have recently reached record highs, and analysts have pointed to financing risk, reported delays at some AI data-center sites, and heavy backlog concentration in a single AI lab. Still, Oracle's demand backdrop is strong. The most recent quarter showed Cloud Infrastructure revenue up 93% year over year to $5.79 billion, and remaining performance obligations reached $638 billion, up 363% year over year. The question is whether that backlog gets financed cleanly enough to translate into margin expansion. Furthermore, sentiment into the report leans constructive. Polymarket traders are pricing the "beat quarterly earnings" outcome at 0.79, and a composite Oracle sentiment score sits at 74.54 with a bullish direction. The financing question remains open after that read, though it does explain why the calls are bid. Cloudflare stock rallied earlier this week on an OpenAI security partnership and is holding those gains today. It sells AI-adjacent services across an existing network rather than funding fresh data-center capacity with debt, which is why its stock is barely moving while the capital-heavy names sell off. Revenue in Cloudflare's most recent quarter accelerated to $696.06 million, up 35.9% year over year, and CEO Matthew Prince stated that "Cloudflare sits at the center of this paradigm shift" as web traffic moves to AI agents. Guidance is also lifting. Cloudflare raised its FY2026 outlook to $2.864 billion to $2.87 billion in revenue and non-GAAP EPS of $1.25 to $1.26. The asset-light model separates it from the operators funding physical GPU capacity through debt markets. Oracle's earnings release after the closing bell could set the tone for the AI infrastructure trade into Friday. Investors can watch for whether management addresses the $40 billion financing plan directly and how much of the backlog remains tied to a single customer, according to Guggenheim. For CoreWeave, the read is starker. A stock that can't rally on its best-known bear covering and a CEO publicly defending deal economics is telling you the argument has moved from demand to the balance sheet, and one's position sizing should reflect that leverage. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And ORCL wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and >;elm:context_link;itc:0;sec:content-canvas" data-yga="{"yLinkElement":"context_link","yModuleName":"content-canvas","yLinkText":"see which stocks made the list -->"}" class="link ">see which stocks made the list -->> Contact [email protected] for any questions or corrections.

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. Revenue growth of 188% year-over-year was driven by the 'land, expand, and expand' strategy, focusing on deepening existing relationships while scaling across fragmented market segments. The company is transitioning from providing software tools to delivering outcomes through applied AI, allowing customers to reduce their total software licensing costs while improving operational efficiency. Management attributes margin expansion to the 'forward deployed engineering' model, which solves specific customer challenges before scaling those solutions as platform-wide capabilities. Strategic positioning in the university vertical has accelerated, growing to over 40 institutions by addressing complex data fragmentation and enrollment challenges common in the sector. The acquisition of Cedarstone added 250 mid-market customers, providing a significant cross-sell channel for Masterworks and other platform capabilities. Operating leverage improved significantly as the company doubled revenue year-over-year while maintaining approximately flat absolute operating expenses. Leadership in applied AI is viewed as a structural tailwind, where improvements in frontier AI models directly translate into faster, more efficient service delivery for Gloo. Management committed to achieving adjusted EBITDA profitability in Q4 2026, supported by recent cost restructuring and integration of business lines. Q3 2026 guidance assumes a significant performance step-up driven by peak seasonal advertising and fundraising cycles for the Masterworks and Westfall Group units. The company expects to reach free cash flow positivity in the back half of fiscal 2027, following its goal of reaching adjusted EBITDA profitability in Q4 2026. M&A remains a core growth pillar for 2027, with a focus on cash-efficient deals (typically 20-25% cash) that add specific denominational expertise or technical capabilities. Future growth is predicated on the adoption of 'Agentic workflows' which replace manual administrative tasks with automated AI agents in areas like donor engagement and help desk support. A $4.4 million restructuring charge was taken in Q2, primarily for severance related to streamlining corporate services and integrating recent acquisitions. The company completed a follow-on offering in the quarter, raising $23.7 million in net capital to strengthen the balance sheet for future growth initiatives. Management extended the term of a $13.2 million senior secured loan by one year to April 2028 to provide additional financial flexibility through 2027. The 'Gloo Code' initiative was launched to help developers optimize token usage by pairing purpose-built agents with specific models, addressing the high cost of AI development. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while Q2 gains were driven by gross margin, future quarters will show increased leverage within operating expenses as restructuring actions take full effect. Synergies are being realized by integrating operations of the five recent acquisitions to reduce duplication. Visibility is supported by a high mix of recurring and 'reoccurring' revenue, alongside a formalized sales compensation program that incentivizes cross-selling across all business units. The pipeline remains strong, particularly as customers move from single-product usage to adopting the full platform portfolio. Management views falling token prices as a direct margin driver, as Gloo acts as an 'open router' that selects the most cost-effective models (often open source) for specific tasks. Lower costs are expected to drive higher volume, as management sees 'no end to the demand for tokens' as Agentic workflows scale. Cedarstone provides a 'sticky' entry point by managing core accounting and donor services, creating a natural cross-sell path for marketing and growth solutions. The acquisition allows Gloo to 'take over the work' of closing books, which can then be automated via AI to improve Gloo's internal margins.

This year has been quite the rollercoaster ride for AeroVironment (NASDAQ:AVAV) investors. After spiking more than 60% to kick off 2026, the stock lost more than 64% of its value due to restated financials and the loss of a key contract. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Despite the obvious challenges, expectations were high heading into the defense company's quarterly financial report, and shareholders got what they were looking for. The results were a reminder that -- like the company's drones -- AeroVironment has further to fly. Image source: The Motley Fool. AeroVironment delivered the results of its fiscal 2027 first quarter (ended Aug. 1), and that was a lot to like. The company generated record revenue, up 6% to $480.5 million, driven by strong sales in the autonomous systems segment. This drove adjusted diluted earnings per share (EPS) up 84% to $0.59. For context, analysts' consensus estimates called for revenue of $456.1 million and adjusted EPS of $0.25, so AeroVironment sailed past expectations. The automated systems (AxS) segment -- which includes drones -- grew 21% year over year to $346 million, while the space, cyber, and directed energy (SCDE) segment declined 21% to $134 million. Other metrics confirmed the strength of its overall results. The company delivered bookings of $683 million, which jumped 71% year over year, resulting in a book-to-bill ratio of 1.4. AeroVironment also reported a record funded backlog of $1.5 billion, up 37% year over year and 23% sequentially. Its unfunded backlog -- which involves expected, but not obligated, future funding -- totaled $1.4 billion. On Tuesday, the company secured its first international order for the LOCUST directed energy counter-drone system, valued at $50 million. This order came in the wake of AeroVironment's U.S. Army contract for $464.8 million for its Enduring-High Energy Laser (E-HEL) -- which marked the first-ever production contract for a high-energy laser weapons system in U.S. history. These were just two of several major contract wins during the quarter. Management is optimistic about the future. AeroVironment maintained its full-year outlook, which calls for revenue in a range of $2.125 billion and $2.225 billion, representing 10% growth at the midpoint of its guidance. The company is also calling for adjusted diluted EPS of $3.16, or a decline of 4% at the midpoint. Management cited a planned facility and capacity expansion, which will increase its depreciation expense, as the reason for the lower profits. AeroVironment's challenges from earlier this year have weighed on its stock price, while also making its valuation much more reasonable. The stock is selling for 44 times forward earnings and 32 times next year's expected earnings -- less than one-third their levels from earlier this year. Wall Street is firmly onboard. Of the analysts who offered an opinion in September, 85% rate the stock a buy or strong buy, and none recommended selling -- and that was even before today's better-than-expected results. To be clear, AeroVironment is a higher-risk, higher-reward stock, complete with lumpy sales, even lumpier profits, and extreme volatility. That said, the company's expanding product line and recent government contract wins highlight the potential for the drone-maker to take flight. Before you buy stock in AeroVironment, 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 AeroVironment 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 $414,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,385,459!* 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 September 9, 2026. Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy. AeroVironment Just Delivered Historic Results. Wall Street Says It's a Buy was originally published by The Motley Fool

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. Delivered 12% sales growth driven by full-price transactions in core categories like woven tops and seasonal knits, reflecting a growing full-price customer base. Acquired OVO's operating business to enter the fast-growing global streetwear market, a category previously unaddressed by the company's portfolio. Transitioning to a multi-brand platform by leveraging Vince's established 'operating backbone'—including sourcing, production, and logistics—to scale the OVO brand. Deepened the partnership with Authentic Brands Group (ABG), securing a 5% stake in OVO's intellectual property and a long-term license to manufacture and sell product. Utilizing OVO's existing Canadian infrastructure to address Vince's historical under-penetration in that market, with plans for five to six new Vince stores in Canada. Maintaining creative independence for both brands by keeping separate design teams while consolidating back-of-house infrastructure to capture scale benefits. Performance was bolstered by $10.4 million in tariff refunds, though underlying profitability remained strong even when excluding these one-time benefits. Raised full-year fiscal 2026 sales growth outlook to 8%-10% for the Vince brand, reflecting continued momentum into the third quarter. Targeting OVO revenue of $100 million+ by fiscal 2030, driven by expanding the retail footprint from 12 to approximately 20 doors and launching U.S. wholesale. Expect OVO to be earnings neutral in fiscal 2026 due to immediate reinvestments in inventory and marketing, turning accretive in fiscal 2027. Anticipate launching OVO's U.S. wholesale business in the second half of next year, following the development of a dedicated wholesale collection. Guidance for the second half of fiscal 2026 assumes $2.6 million in remaining tariff refunds will be offset by incremental freight and product cost pressures. Reported $10.4 million in tariff refunds during Q2, which significantly boosted gross margin and adjusted EBITDA figures. Incurred $2.9 million in transaction costs related to the OVO acquisition, impacting SG&A expenses in the second quarter. Management noted elevated comparisons to the prior year and a dynamic macro environment as key variables in their forward-looking guidance. The acquisition structure involves a 44% IP stake held by Drake, requiring ongoing creative alignment with the founder to maintain brand DNA. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Men's now represents approximately 25% of the business and continues to grow at a pace similar to the women's segment. Management is exploring category extensions like tailored clothing, handbags, baby, and home products in partnership with ABG to enhance the store experience. Drake remains highly committed to the brand's DNA and will be involved in overall direction, personal appearances, and marketing alignment. Vince will provide the manufacturing and sourcing infrastructure that OVO previously lacked at scale. Management expects a balanced business model for OVO between wholesale and retail within three years, similar to the Vince brand structure. A full U.S. wholesale launch is targeted for summer or the back half of next year, with potential for smaller 'capsule' drops earlier. The OVO deal serves as a proof-of-concept for using Vince's platform to manage diverse categories, including streetwear. Management expressed intent to 'rinse, lather, and repeat' this strategy with other brands, likely in continued partnership with ABG, after successfully integrating OVO.

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 attributed record-breaking results to a 'stellar' market environment where geopolitical tensions, specifically the closure of the Strait of Hormuz, have significantly increased ton-mile dislocation. The company is executing a massive $3.1 billion fleet renewal program involving 26 newbuildings, with management noting that these assets have already appreciated by approximately 30% since contracting. Strategic positioning focuses on a 'balanced' model, using fixed-rate charters to cover all-in break-even costs while utilizing spot and profit-sharing contracts to capture market upside. Management highlighted an unprecedented appetite from major oil companies, who are now seeking long-term charters of up to 7 years for vessels aged 10 years or younger. Operational safety remains a priority amid regional conflicts; the company continues to avoid the Strait of Hormuz to protect seafarers despite the resulting market tightness. The divestment strategy involves selling older 'third-generation' vessels at high valuations to fund the transition toward a greener, dual-fuel, and more energy-efficient fleet. Management expects a significant increase in profit-sharing revenue for the second half of 2026 due to renegotiated higher minimums and favorable market-related contract terms. The company is targeting total annual revenues to exceed $1 billion for the first time, supported by a forward committed earnings cushion of approximately $3.5 billion. A dividend increase is anticipated following the November strategy meeting, as management aims to reward shareholders while maintaining a solid yield near 4%. Management is considering the redemption of Series E Preferred Shares in 2027, which could potentially add $0.30 to $0.40 to the bottom line by eliminating high-coupon obligations. The delivery of 19 remaining newbuildings, including three VLCCs, is expected to provide a substantial boost to future earnings and revenue capacity. Geopolitical volatility in the Middle East and Venezuela has created an 'operational minefield,' requiring constant tactical adjustments to ensure vessel and crew safety. The company recorded a $38 million capital gain in Q2 2026 from vessel sales, contributing to the significant jump in reported net income. Management clarified that while they have explored 'carving out' a portion of the long-term fleet into a specialized internal unit, this is currently 'food for thought' and not a near-term priority. Inflationary pressures and higher bunker prices for spot-trading vessels contributed to a rise in voyage and operating expenses during the first half of the year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed Q2 profit-sharing was $30.5 million and expects a 'significant increase' in the second half of the year. The optimism is driven by 13 vessels currently on profit-sharing arrangements, nine of which are large-capacity Suezmaxes and VLCCs. The company plans to sell the 'Andes' (built 2003) next as part of its ongoing fleet modernization, despite the vessel still commanding healthy rates from majors. Management emphasized that they are selling vessels as they reach 'legal age' (21 years) to maintain a young, efficient fleet profile. Management explicitly rejected moving to a quarterly dividend, preferring the current semi-annual schedule for logistical and operational reasons. They argued that semi-annual payments better reflect the reality of shipping cycles where single voyages can exceed a three-month quarter. Management clarified that any potential carve-out of long-term assets would remain within the TEN corporate structure, with the company TEN will maintain its large fleet size and ensure that any potential strategic developments, such as a minority holder investing in specific assets, will not affect TEN shareholders. The Chairman emphasized this is not a top-priority development for the near future but a potential way to highlight 'hidden value' for specific investors.