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Intel Beats Q2 Expectations as Stocks Show Mixed Performance
The major averages had a mixed Friday as stocks attempted to recover from Thursday's tech-led selloff. Intel saw weakness despite a Q2 beat and technology remains the market's primary focus after Alphabet and Tesla sparked the biggest one-day decline in the S&P 500 and Nasdaq in about a month. Investors have grown increasingly concerned that soaring capital expenditures and cash burn tied to artificial intelligence may take longer to generate meaningful returns.In macro news, Pakistan is exploring a path towards a resumption of stalled talks between the U.S. and Iran, three Pakistani sources told Reuters. Although crude oil prices pulled back from their overnight highs, the commodity advanced for the week.Additionally, U.S. President Donald Trump said in a social media post that the European Union "will pay a very big price" for fines against U.S. tech companies. "The penalties will be entirely reversed and, we anticipate, a substantial TARIFF to be placed on them at the earliest possible moment," Trump.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Intelreportedand provided upbeat Q3 earnings and revenue guidanceVerizonprovided afor Q2American Expressreportedand reaffirmed its FY26 earnings outlookDefense technology company Anduril is in talks to raise funding at a roughly $100B valuation,Payment processor Stripe, which is still mulling its next move with respect to a deal for PayPal, is in discussions to acquire AI model marketplace OpenRouter,2. WALL STREET CALLS:HSBC "prudent" on futuristic calls for SpaceX,Cheesecake Factoryto Neutral at MizuhoPayPalto Hold from Sell at TruistAlbertsonsat BMO Capital and Telsey AdvisoryEdwards Lifesciencesto Outperform at Leerink3. AROUND THE WEB:Bidding for MarineMaxhas moved into a third round and Blackstone, Donerail and private equity firm Centerbridge are among the final bidders to acquire the recreational yacht retailer, Reuters reportsRivianis suing the U.S. government in an effort to claw back a "full refund" on tariffs it paid under President Trump's "Liberation Day" tariffs, TechCrunch reportsAlphabet'sWaymo is weighing options to split from its Uberpartnership, FT reportsBPis in advanced talks to sell its solar power arm Lightsource to Qualitas Energy, a private equity firm focused on green energy, and Wren House, the infrastructure arm of Kuwait Investment Authority, FT saysThe pause on Paramount Skydance'sproposed $110B takeover of Warner Bros. Discoveryhas been extended to August 17 from August 3 by a U.S. judge, Bloomberg reports4. MOVERS:RingCentralgained after, increasing its guidance for FY26, and raising its quarterly dividendTenet Healthcarewas higher afterand authorizing a $2B increase to its share repurchase programDigital Realtyand Booz Allenincreased afterZevra Therapeuticswas lower after announcing the CHMP of the EMAregarding the MAA for arimoclomolMaxLinearand Summit Therapeuticsfell after5. EARNINGS/GUIDANCE:HCA Healthcareand cut its guidance for FY26Charter, with EPS and revenue beating consensusNextEra Energy, with CEO John Ketchum commenting, "NextEra Energy delivered a strong Q2, with adjusted earnings per share increasing by 9.5% year-over-yearSensientand raised its guidance for FY26Gentex, with CEO Steve Downing commenting, ""Our second quarter results demonstrate the importance of our strategy to grow through technology, product mix, and diversification"INDEXES:The Dow rose 235.60, or 0.46%, to 51,947.25, the Nasdaq lost 161.87, or 0.64%, to 24,975.82, and the S&P 500 advanced 3.68, or 0.05%, to 7,411.98.
Major Averages Rebound as Intel Reports Strong Q2 Earnings
The major averages were higher near noon as stocks look to recover from Thursday's tech-led selloff. Intel is seeing weakness despite a Q2 beat and technology remains the market's primary focus after Alphabet and Tesla sparked the biggest one-day decline in the S&P 500 and Nasdaq in about a month. Investors have grown increasingly concerned that soaring capital expenditures and cash burn tied to artificial intelligence may take longer to generate meaningful returns.Meanwhile, Pakistan is exploring a path towards a resumption of stalled talks between the U.S. and Iran, three Pakistani sources told Reuters. Although crude has pulled back from its overnight highs, it remains higher for the week.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Intelreportedand provided sharply upbeat Q3 earnings and revenue guidanceVerizonprovided areport for Q2American Expressreportedand reaffirmed its FY26 earnings outlookDefense technology company Anduril is in talks to raise funding at a roughly $100B valuation,Payment processor Stripe, which is still mulling its next move with respect to a deal for PayPalis in discussions to acquire AI model marketplace OpenRouter,2. WALL STREET CALLS:HSBC "prudent" on futuristic calls for SpaceX,with Hold ratingCheesecake Factoryto Neutral at MizuhoPayPalto Hold from Sell at TruistAlbertsonsat BMO Capital and Telsey AdvisoryEdwards Lifesciencesto Outperform at Leerink3. AROUND THE WEB:Amazonis shuttering its AGI Lab as part of layoffs in its AGI unit earlier this week, The Information saysSoftBankis considering an acquisition of Gravis Robotics in a deal that would value the startup at more than $500M, Bloomberg reportsNestlehas been lobbying U.S. authorities to allow simpler descriptions on packaging rather than scientific names, Reuters reportsBPis in advanced talks to sell its solar power arm Lightsource to Qualitas Energy, a private equity firm focused on green energy, and Wren House, the infrastructure arm of Kuwait Investment Authority, FT saysThe pause on Paramount Skydance'sproposed $110B takeover of Warner Bros. Discoveryhas been extended to August 17 from August 3 by U.S. District Judge Araceli Martinez-Olguin, Bloomberg reports4. MOVERS:RingCentralgains after, increasing its guidance for FY26, and raising its quarterly dividendTenet Healthcarehigher afterand authorizing a $2B increase to its share repurchase programDigital Realtyand Booz Allenincrease afterZevra Therapeuticslower after announcing the CHMP of the EMAregarding the MAA for arimoclomolMaxLinearand Summit Therapeuticsfall after5. EARNINGS/GUIDANCE:HCA Healthcareand cut its guidance for FY26Charter, with EPS and revenue beating consensusNextEra Energy, with CEO John Ketchum commenting, "NextEra Energy delivered a strong Q2, with adjusted earnings per share increasing by 9.5% year-over-yearSensientand raised its guidance for FY26Gentex, with CEO Steve Downing commenting, ""Our second quarter results demonstrate the importance of our strategy to grow through technology, product mix, and diversification"INDEXES:Near midday, the Dow was up 354.51, or 0.69%, to 52,066.16, the Nasdaq was up 58.28, or 0.23%, to 25,195.97, and the S&P 500 was up 46.80, or 0.63%, to 7,455.10.
Company Reports Q2 Revenue of $651.3M, Below Expectations
Reports Q2 revenue $651.3M, consensus $669.55M. "Our second quarter results demonstrate the importance of our strategy to grow through technology, product mix, and diversification," said Steve Downing, President and CEO. "While total mirror unit shipments and revenues came in approximately 3% and 5% below our beginning-of-quarter forecast, respectively, our results benefited from strong North American performance, higher content per vehicle in Europe, and continued growth from our non-automotive product lines. In Europe, new DMS and ICMS launches continued to gain traction during the quarter, helping limit the impact of a 26% quarter over quarter decline in international interior mirror unit shipments. Since the beginning of the tariff wars, we have continued to be impacted by pressure in China, where revenue declined approximately 20% quarter over quarter. Outside of automotive, Premium Audio revenue increased approximately 16% quarter over quarter, while our Other Products category collectively grew approximately 12% in the same period. In total, non-automotive revenue was approximately 14% of the Company's total revenue for the quarter. These results reinforce the benefits of our diversification strategy and our confidence in the long-term opportunities to expand both our technology portfolio and revenue base, inside automotive and in other markets."
Raises FY26 Gross Margin View to 34.5%-35.5%
Raises FY26 gross margin view to 34.5%-35.5% from 34%-35%. Raises FY26 capital expenditures view to $125M-$140M from $115M-$125M. Narrows FY26 tax rate view to 16%-17% from 16%-18%. "We delivered very strong gross margin performance during the second quarter, on both a quarter over quarter and sequential basis," commented Downing. "Of the approximately $38 million of IEEPA tariff reimbursements received during the quarter, approximately $18 million reduced cost of goods sold and favorably impacted gross margin. Beyond that benefit, gross margin also improved sequentially by approximately 50 basis points from the first quarter of 2026, despite lower automotive revenue, ongoing non-IEEPA tariff costs, and significantly higher precious metals costs. The improvement was driven by favorable product mix, disciplined operational execution, and improved profitability within the Other Products categories."
Company Expects 2027 Revenue Between $2.80 and $2.90 Billion
The company said, "Based on the mid-July 2026 Mobility Global light vehicle production forecast and the Company's expectations for Automotive, Premium Audio, and Other Products revenue, the Company continues to expect calendar-year 2027 revenue to range between $2.80 and $2.90 billion."
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