Old Navy Chief Out as Sales Falter Again—But the Real Story Is the Gap Brand's Stunning Comeback

 Old Navy Chief Out as Sales Falter Again—But the Real Story Is the Gap Brand's Stunning Comeback

## The company's former "star" has dimmed, but Gap Inc. has found an unlikely new hero: the namesake brand, which has become the "star of the show" after years in the doldrums.

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### A Leadership Shakeup at the Crown Jewel

On August 26, 2026, Gap Inc. announced a significant leadership change at its biggest revenue driver. **Haio Barbeito is out as CEO of Old Navy after four years at the helm**, transitioning to an advisory role effective November 2 . His replacement is **Michael Francis**, a retail industry veteran with deep experience at Target (26 years) and Walmart (10 years), who joined the company in March as chief customer officer .

CEO Richard Dickson framed the move as "a planned and thoughtful transition" to better equip Old Navy for its next chapter . However, the timing—coming on the heels of a disappointing quarterly report—suggests the company needed to act decisively to address growing concerns about its largest brand.

### The Numbers That Tell the Story

Old Navy's Q2 2026 performance was disappointing by any measure. Net sales fell **4% year-over-year to $2.1 billion**, with comparable sales down **4%** . This marked the brand's **first negative same-store sales figure since the second quarter of 2023** . Wall Street analysts had expected a decline of just 2.4%, making the miss more pronounced .

The weakness was driven by "an unanticipated slowdown in traffic" and a summer marketing campaign that "lacked a direct product message," according to Dickson . The CEO acknowledged the company "didn't execute well on seasonal product," calling the issue "seasonal" and noting that it was behind them .

"The family demographic that Old Navy serves is under pressure, but Old Navy did not give them enough reasons to buy," said Neil Saunders, managing director of GlobalData . "In our view, this is now quite a serious challenge that the group needs to correct."

### The Silver Lining: Gap Brand's Resurrection

While Old Navy stumbled, the **Gap brand** posted a remarkable turnaround. Net sales rose **9% to $844 million**, with comparable sales surging **10%** . Under Dickson's leadership, the brand has labored to regain cultural relevance, and the efforts are paying off .

"The various collaborations and cultural activations are certainly helping to keep the brand in the spotlight and are driving sales," Saunders said . "But growth has also moved beyond this as healthy uplifts are being produced across the core assortment in categories like fleece and denim."

Banana Republic also showed modest improvement, with net sales up **1% to $478 million** and comparable sales rising **3%** . Athleta continued to struggle, posting a **12% decline in both net sales and comparable sales** .

### Overall Gap Inc. Performance: A Mixed Picture

Gap Inc.'s overall Q2 results reflected the divergent performance of its brands. **Total net sales fell 2% to $3.7 billion**, and comparable sales dropped **1%** . Earnings per share of **$0.52 beat estimates**, but revenue of **$3.65 billion slightly missed** expectations .

The company narrowed its full-year net sales growth outlook from **1% to 2% down to 1% to 1.5%** due to Old Navy's lag . However, Gap **raised its annual profit forecast**, helped by stronger pricing at the Gap brand and a **tariff refund** that boosted gross margins significantly in the quarter .

### The Michael Francis Playbook

Francis brings deep retail experience to his new role . He has held advisory and leadership positions at DreamWorks Animation, J.C. Penney, and Target . His approach is focused on **"customer experience, brand relevance, and momentum-building"** .

Incoming CEO Francis said the brand would "continue to sharpen our customer focus, strengthen the brand's cultural relevance, enhance the customer experience across every touchpoint and build on the momentum already underway" .

Jefferies analysts noted that "the appointment of a new Old Navy leader underscores management's focus on stabilizing performance at the company's largest banner" .

### The Challenge Ahead

Old Navy contributes **nearly 60% of Gap's overall revenue**, making its performance critical to the company's success . The brand's struggles have been building over several quarters, with weakness in select women's apparel categories .

Dickson remains confident in the company's direction: "On balance, we're running a very disciplined organization with a playbook that is working. These things take time. I think, pointing to Gap as the lead success story of our playbook, you can see the ability for us to actually deliver relevance and revenue, and we're well on our way" .

But as Saunders warned, "Gap should be able to end the full fiscal year on a positive sales note, but it needs to get the big engine of Old Navy whirring again to keep advancing at a convincing pace" .

### Key Takeaways

- **Leadership Change:** Michael Francis replaces Haio Barbeito as Old Navy CEO effective Nov. 2, 2026

- **Sales Drop:** Old Navy Q2 net sales fell 4% to $2.1B, with comps down 4%, first negative since Q2 2023

- **Gap Brand Soars:** Gap brand comps rose 10%, net sales up 9% to $844M, becoming "star of the show"

- **Gap Inc. Outlook:** Company narrowed full-year sales guidance but raised profit forecast

- **The Strategy:** Francis to focus on customer experience, brand relevance, and execution at Old Navy

---

## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Corporate leadership changes, financial performance, and strategic initiatives are subject to change. This is not financial or investment advice. You should consult with qualified professionals for guidance on specific issues.

---

*Published: August 28, 2026*

The $3 Billion Question: Why No One Is Buying IMAX Despite Its Best-Ever Box Office

 

The $3 Billion Question: Why No One Is Buying IMAX Despite Its Best-Ever Box Office

**The premium theater chain has record ticket sales, a soaring stock price, and an open invitation to buyers. Yet nearly nine months after CEO Rich Gelfond said the company was open to a sale, no major suitors have appeared. Here's why.**

---

## The Paradox: A "Masterful" Business With No Takers

IMAX is having a banner year. The company's stock is up more than 40% year-to-date, trading near all-time highs . Its box office is breaking records: Christopher Nolan's *The Odyssey* surpassed $400 million in global IMAX ticket sales, the first film to exceed the benchmark in the company's history, representing nearly 30% of total global sales despite IMAX screens representing less than 1% of movie screens worldwide . The company is on track to set a new global box office record in 2026, hot off the heels of a record $1.28 billion in 2025 .

"The brand value of Imax has never been higher," Eric Handler, managing director at Roth, told CNBC. "They have done a really good job of situating themselves right in the center of the eco-structure for Hollywood. So, it's been a masterful, long-time-coming situation" .

Yet when CEO Rich Gelfond opened the door to a sale in December 2025, the phone didn't ring. Imax held preliminary talks with potential buyers earlier in 2026, but as of May hadn't fielded any official pitches . The company hasn't hired new bankers and doesn't have a formalized pitch book, according to a person familiar with the matter . With a market cap of roughly $3 billion, Imax is a relatively inexpensive asset in the entertainment landscape .

**The question is not what's for sale. It's who would buy.**

## The "Neutrality" Trap: Why Studios and Exhibitors Can't Touch It

### The Studio Conflict of Interest

Major studios—Disney, Universal, Paramount, and Warner Bros.—would have an immediate conflict of interest if they acquired IMAX, Wall Street analysts told CNBC . IMAX is "studio agnostic" ; it treats all studios equally, negotiating release windows for top-billed films. A studio that owned IMAX would have the ability to prioritize its own films for the most valuable premium screens . Competitors would revolt.

"A Disney acquisition would be 'strategically obvious' given that it's IMAX's biggest beneficiary globally," one analyst noted, "but getting a deal done would be 'practically impossible'" . "Disney would be buying something whose value depends entirely on its neutrality, and they would be eliminating that neutrality on day one" .

Sony has the "clearest sequential strategic narrative" of any studio acquirer, analysts said, because it has no streaming platform and its acquisition of the Alamo Drafthouse theater chain demonstrated both willingness and regulatory freedom to move into exhibition . But even Sony would face the perception problem of a studio controlling the premium screens it competes on .

### The Exhibitor Conflict of Interest

The same problem applies to theater chains. AMC, Regal, and Cinemark collectively represent the majority of IMAX's screen count . If any one of them bought IMAX, they'd control the release slate for their competitors' screens—and they'd get a share of their box office .

Exhibitors also have their own competing premium formats. Cinemark's XD format is featured at 300 locations; AMC launched new "XL" screens last year through a partnership with projector company Barco . In September 2025, Cinema United reported that movie theaters spent a combined $1.5 billion in renovations, including $920 million from the top eight chains—much of it developing in-house premium formats that compete directly with IMAX .

## The Tech and Streaming Wild Cards

### Netflix: The Most Logical Suitor

Netflix has been mentioned as the most logical buyer . The streamer has dipped its toe in the theatrical experience with the *Stranger Things* series finale and films like *Frankenstein* and *KPop Demon Hunters* . It plans to give both Greta Gerwig's *Narnia* and David Fincher's Cliff Booth films the IMAX treatment .

Earlier this year, Netflix made an $83 billion play to acquire Warner Bros. Discovery's streaming and studio assets—which would have catapulted the company right into the theatrical distribution business . That deal fell apart, but Netflix walked away with a $2.8 billion breakup fee . It has the capital, the interest in "eventized" programming, and the strategic need for a theatrical foothold.

### Apple, Amazon, and the "Hardware" Argument

Apple and Amazon have also been floated as potential buyers . Both companies have deep pockets and an interest in premium content experiences. Apple's hardware business could benefit from the IMAX brand—IMAX already licenses its "IMAX Enhanced" certification for TVs and soundbars . But a streaming or tech company would face similar neutrality concerns if they became gatekeepers of premium theatrical distribution.

### Private Equity: The Neutral Buyer

Private equity firms could theoretically buy IMAX without the neutrality problem—they'd have no studio or exhibition conflicts of interest. But IMAX's business model is capital-intensive, with 160 to 175 new systems expected to be installed in 2026 and hundreds more under contract . Private equity typically seeks businesses with strong cash flow and low capital requirements; IMAX is growing, but growing requires spending.

## The China Problem: A "Hangover" That Won't Quit

One of the reasons IMAX's financials look less attractive than its box office headlines is China. IMAX's revenue in Greater China plunged nearly 50% in the first quarter of 2026 compared to the same period last year, with its share of total revenue dropping from roughly 46% to about 25% .

The cause? A "Ne Zha 2" hangover. The animated blockbuster generated about 15.44 billion yuan at the box office in 2025, making it the fifth-highest grossing film in global history . In the first quarter of 2026, without a comparable hit, China's Lunar New Year box office plunged 39% year-over-year . IMAX's China box office fell about 62% year-over-year .

The company is actively working to reduce its dependence on Hollywood hits by increasing its participation in local-language content—Chinese-language films now account for more than 66% of its China box office . But the volatility of the Chinese market remains a risk factor that any potential buyer would have to weigh.

## IMAX Is Thriving—But It's Thriving as a Standalone

The paradox of IMAX is that it's doing exactly what a company should do: executing well, growing revenue, and delivering value to shareholders. Its stock has returned 79% over the past year and 178% over the past three years . Its premium ticket pricing—$20.57 per average adult ticket, more than 60% higher than standard—has not deterred audiences .

But the very factors that make IMAX successful also make it difficult to acquire. Its value depends on neutrality. Its growth depends on partnerships with competitors. Its future depends on navigating a complex ecosystem of studios, exhibitors, and streaming platforms.

As CNBC's Sarah Whitten put it, "Imax is doing just fine as a standalone company and its pool of prospective suitors isn't quite as large as you might think" .

## Frequently Asked Questions

### Q: Why did IMAX say it's open to a sale?

In December 2025, IMAX CEO Rich Gelfond told investors the company was open to a potential sale. The statement came as IMAX's stock was performing strongly and the company was looking to capitalize on its momentum .

### Q: Which companies have been mentioned as potential buyers?

Wall Street analysts have identified Netflix, Apple, Amazon, and Sony as potential buyers, along with private equity firms . Netflix has been described as the "most logical" suitor given its interest in theatrical releases.

### Q: Why haven't studios bought IMAX?

A studio buying IMAX would create an immediate conflict of interest—the owner would prioritize its own films for premium screens, prompting competitors to pull back and likely attracting regulatory scrutiny . Disney, Universal, Paramount, and Warner Bros. all face this problem.

### Q: Why haven't theater chains bought IMAX?

Exhibitors like AMC and Regal face the same neutrality problem—owning IMAX would give them control over competitors' premium screens. They've also been investing in their own competing premium formats like Cinemark's XD and AMC's XL screens .

### Q: Is IMAX struggling financially?

No. IMAX's Q2 2026 revenue was $102.8 million, up 12% year-over-year . The company is on track to set a global box office record in 2026 . Its stock has risen more than 40% year-to-date and nearly 80% over the past year .

### Q: What's the problem with IMAX's China business?

IMAX's China revenue fell nearly 50% in Q1 2026 compared to the same period last year, driven by the absence of a blockbuster like "Ne Zha 2" . The company is actively working to reduce its dependence on Hollywood hits by increasing local-language content, but the volatility of the Chinese market remains a risk .

### Q: Is Netflix actually interested?

Netflix has been mentioned as a logical buyer given its interest in "eventized" programming and its recent $83 billion play for Warner Bros. Discovery's assets . But Netflix has not publicly confirmed interest in acquiring IMAX.

## Conclusion: The Best Buyer May Be No Buyer

IMAX is in an unusual position: a company performing at its peak, with a clear strategic vision, but few obvious buyers. The very thing that makes IMAX valuable—its neutrality, its partnerships, its role as the premium screen for every studio—is the thing that makes it hard to sell.

Eric Handler of Roth put it best: "The brand value of Imax has never been higher" . But the brand value depends on staying exactly where it is: independent, studio-agnostic, and focused on delivering the best premium cinema experience in the world. For now, that may be exactly where IMAX stays.

---

## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Any discussion of potential buyers is speculative and based on analyst commentary; no acquisition is imminent or guaranteed. Market conditions, stock prices, and company performance are subject to rapid change. Past performance is not indicative of future results. You should consult with a qualified financial advisor before making any investment decisions.

---

*Published: August 28, 2026*

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**Tags:** IMAX, IMAX stock, movie theaters, premium large format, acquisition, mergers and acquisitions, Netflix, Apple, Amazon, Sony, Disney, Universal, Warner Bros., AMC, Regal, Cinemark, China box office, entertainment industry, Rich Gelfond, box office records, Christopher Nolan, The Odyssey, Dune Part Three, private equity, media consolidation, Imax sale, Imax buyer

Dow Jones Futures: Fed Chief Warsh Speech Due as Markets Await the Next Clue on Rates

Dow Jones Futures: Fed Chief Warsh Speech Due as Markets Await the Next Clue on Rates

**Nvidia's blowout quarter lifted the Nasdaq to a record high, but the real test for markets comes Friday morning, when Federal Reserve Chair Kevin Warsh delivers a speech that could define the trajectory of interest rates for the rest of the year.**

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## The Calm Before the Storm

In a week dominated by blockbuster AI earnings, the market is shifting its focus to a far less predictable event: Fed Chair Kevin Warsh's speech at the Jackson Hole Economic Symposium on Friday. The Nasdaq had already risen 5.8% in August through Thursday, driven by Nvidia's $442 billion one-day pop and a broader AI rally . But after the euphoria, reality is setting in: the central bank remains deeply divided on whether to raise rates in September or wait for more data .

The Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, is expected to show continued moderation when it is released on Friday before Warsh speaks . But energy prices remain volatile, the labor market is cooling but not collapsing, and Warsh's communication strategy has left markets without the usual forward guidance they've come to rely on. As one strategist put it: "Warsh is the day, not the data" . The stock market is at a "knife's edge," and the inflation data will be "the real test."

## Warsh's Jackson Hole Moment

Kevin Warsh has already signaled that he intends to use the Jackson Hole stage to define his legacy. In a preview interview, he said: "If you look at what previous Federal Reserve chairs have said at Jackson Hole, from Paul Volcker to Alan Greenspan to Ben Bernanke to Jay Powell, I think those speeches have been important, and I think my speech on Friday will be important" .

The speech will be Warsh's most significant public address since taking office in May. He has already established a reputation for withholding forward guidance, leaving markets to interpret each new data point without the central bank's usual signals. But Jackson Hole offers him a rare opportunity to shape expectations without committing to a specific course of action.

**What the market is watching for:**

- Any hint that the Fed is leaning toward a September rate hike

- Language on whether recent progress in inflation is durable or transitory

- Comments on the impact of AI-driven spending on the economy

## Marvell's AI Gamble

While markets wait for Warsh, Marvell Technology delivered a second-quarter report that beat estimates across the board. The company is still expected to see its custom silicon opportunity with a key hyperscaler expand significantly, with the real payoff not expected until fiscal 2029 and beyond . The company expects to provide more detailed long-term custom revenue guidance at its October 6 Investor Day .

## Affirm's Big Beat

Affirm Holdings, the buy-now-pay-later pioneer, surged after reporting a blowout quarter. The company posted its first profitable quarter—a milestone that had eluded it for years . The revenue beat was driven by a sharp increase in merchant adoption, even as rising prices have made credit an increasingly attractive option for consumers.

## PayPal's Make-or-Break Moment

PayPal continued its gradual recovery from a period of investor skepticism. After a 10% drop on Thursday, the stock was already rebounding in pre-market trading . The company is undergoing a significant transformation as it faces competition from new entrants, but its earnings beat and raised guidance suggest the turnaround is gaining traction.

## Elastic and the "Software Renaissance"

Elastic, the search and analytics company, is riding the tailwind of what analysts are calling a "software renaissance." Its earnings beat suggests businesses are spending again on enterprise software.

## The Nvidia Effect

Nvidia's $442 billion one-day surge is the third largest in stock market history, trailing only the company's own record in 2025 and Microsoft's $450 billion surge in July 2026 . But the key question is whether the rally can sustain itself.

J.P. Morgan analysts noted that Nvidia's forward guidance—70% growth for fiscal 2028—may still be conservative, as the company's forecast is constrained by supply limitations while underlying demand growth is even stronger . The broader AI trade has broadened, with utility and power producers gaining as investors bet on continued data center expansion. "Powered land is now the binding constraint to AI," said Melius Research managing director James West .

## What to Watch

- **Jackson Hole Speech:** Warsh speaks Friday at 10 a.m. ET. Markets will parse every word for clues on the Fed's September rate decision.

- **PCE Data:** The Fed's preferred inflation gauge is released before the speech.

- **China Stocks:** The Shanghai Composite surged 5% this week after a government stimulus package.

- **AI Rotation:** The rally has broadened beyond chips, with software and utility names gaining.

---

## Frequently Asked Questions

### Q: Why is Fed Chair Warsh's Jackson Hole speech important?

Jackson Hole is the Fed's annual symposium, where chairs have historically used the stage to signal major policy shifts. Warsh has said he intends to make his speech important and will use the opportunity to define his legacy.

### Q: What is the probability of a September rate hike?

After the July jobs report, the probability of a rate hike fell to roughly 40%, but it could rise sharply if the PCE report surprises to the upside or if Warsh signals hawkish intent.

### Q: What does Nvidia's guidance mean for the AI trade?

Nvidia's 70% FY28 growth forecast suggests the AI infrastructure buildout will continue for years. But the rally is narrow, and the market is increasingly concentrated in a few names.

### Q: Is the AI rally sustainable?

The long-term outlook remains positive, but the market is increasingly concentrated in a few names. Federal Reserve Chair Kevin Warsh's Jackson Hole speech will be the next major test.

### Q: What are the key data releases this week?

The Consumer Price Index report was released earlier this week, and the Personal Consumption Expenditures (PCE) price index will be released Friday before Warsh's speech.

---

## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Market conditions, stock prices, and economic data are subject to rapid change. Past performance is not indicative of future results. You should consult with a qualified financial advisor before making any investment decisions.

---

*Published: August 28, 2026*

4 Beaten-Down Stocks With Average 134% EPS Growth Ready To Rally

 4 Beaten-Down Stocks With Average 134% EPS Growth Ready To Rally

The shift toward companies with improving fundamentals, rather than just speculative momentum, is a theme that often emerges when market sentiment recalibrates.

## The Earnings Surprise Behind the Sell‑Off

The last quarter of 2026 was a study in contradiction for investors. While a handful of megacap tech names drove the major indexes higher, a broader look at the market reveals a different story. Several well‑known companies, despite being battered by the market's rotation away from certain sectors, have posted earnings growth that far outpaces their stock performance. This divergence creates a potential opportunity.

## Why Beaten-Down Stocks with Strong EPS Growth Attract Attention

Investors often focus on the interplay between a stock's price and the underlying health of its business. When a company's profits are rising but its share price is not, a "valuation gap" opens up. For those with a long‑term perspective, this disconnect can be a signal to dig deeper.

**Average 134% EPS Growth Is a Significant Indicator**

A threshold of 134% average earnings per share growth in this environment is noteworthy. It suggests that the companies in question are not just surviving but are seeing their underlying profitability expand at a rapid clip. This typically points to strong demand for their products or services, successful cost management, or a combination of both.

## The 4 Stocks Being Overlooked

**Tech Sector Rotation Left Solid Fundamentals Behind**

The first company is a mid‑cap tech name that has been hit hard by the rotation out of software stocks. Despite a 50% decline from its 52‑week high, its forward EPS estimates have been revised upward by nearly 85% over the last three quarters. Its cash flow is robust, and its debt is minimal. The market appears to be lumping it in with peers facing more severe headwinds, but its specific business model remains resilient.

**Healthcare Silence Masks Strong Growth**

The second pick is in the healthcare sector, which has seen a cautious investor sentiment. This company, a mid‑sized pharmaceutical firm, has a pipeline of new drugs that is beginning to bear fruit. Its EPS growth is stellar, yet its valuation remains compressed relative to its historical average. Concerns over regulatory changes and the broader political environment have masked its operational successes.

**Industrial Stock Misunderstood by the Market**

The third company is an industrial supplier that is often seen as a "cyclical play." However, the company has successfully pivoted its business toward higher‑margin after‑market services. This transition is driving a 120% EPS growth rate, but the stock has yet to recover because the market still categorizes it with its more volatile peers.

**Consumer Discretionary Finds Its Feet**

Finally, a consumer discretionary company that was written off as a casualty of inflation has quietly regained its footing. It has adapted its product line and supply chain, resulting in a stunning earnings rebound. The stock price, however, has lagged, presenting a compelling opportunity in a sector that many have already written off.

## Final Thoughts

These four stocks highlight a common theme in a market that sometimes prioritizes narrative over numbers. Their strong earnings growth suggests that their business models are working, even if their stock prices are not yet reflecting that reality.

 

Businesses Are Getting Tariff Refunds—Why Aren't Consumers Getting Their Cut?

## The Supreme Court struck down Trump's emergency tariffs, unlocking $100 billion in refunds. But the money is going to corporations, not the American families who paid higher prices.

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### The $100 Billion Question

Last year, Sandra Alonso needed a new powered wheelchair to get around her city of Tampa, Florida. She ordered the same model she had before—a chair made in China. When the bill arrived, she paid an extra $3,500. The reason? Tariffs on Chinese goods had reached 145%.

"There's no reason I had to pay double for this chair," Alonso told NPR . "The federal government should give me my money back."

Alonso's frustration is shared by millions of Americans. In February 2026, the Supreme Court ruled that President Trump's emergency tariffs were illegal. The federal government has since refunded more than $100 billion to businesses that paid those fees . But the American consumers who actually bore the cost of those tariffs? They're seeing almost none of it.

**"It's all just a giant transfer from consumers to corporations,"** said Michael Ettlinger, a senior fellow at the Institute on Taxation and Economic Policy. **"You can't really design a worse tax than that"** .

---

## Why the Refunds Go to Businesses—Not You

The refund system is structured so that only the "importer of record"—the company that directly paid the tariff at customs—can file a claim. If you bought a pair of sneakers that became more expensive as the company passed along its tariff costs, you have no legal way to get that money back .

The federal government's records identify the company that paid customs, not the shopper who absorbed each dollar of that cost .

**"It's like the retailer stirred the tax into the batter,"** said Terence Lau, dean of Syracuse University's college of law. **"So once it's cooked into the cake you can't just back it out ingredient by ingredient anymore because it's not separated"** .

For businesses, large and small, shipping costs can function as a black box. Robert Shapiro, chair of the international trade group at the law firm Thompson Coburn, told NPR: **"I've had CEOs of big businesses say to me, 'are we paying these tariffs?' And they paid millions of dollars in tariffs. But it got rolled into the price of goods"** .

---

## Who's Giving Refunds—and Who Isn't

### The Exception: Shipping Companies

Sandra Alonso is actually one of the lucky ones. She imported her wheelchair through UPS, and the company told her her refund is in the works . UPS, FedEx, and DHL have all pledged to pass along refunds to customers.

The reason is straightforward: shippers explicitly charged customers tariff fees. If the government charged FedEx $100 to import your package, FedEx billed you $100 .

**"Now that FedEx and UPS have received a refund of that $100 from the federal government, they are absolutely obligated to return it to the person they collected it from,"** Lau said. **"Otherwise it would be a pretty open-and-shut lawsuit against them for unjust enrichment"** .

### The Retailers: A Different Story

Don't expect the same from retailers. The numbers tell a stark story:

| Company | Refund Amount | What They're Doing |

|---------|---------------|-------------------|

| **Amazon** | ~$640 million | May offer "limited" refunds to some customers  |

| **Target** | $994 million | **Using it to lower prices**—not issuing refunds  |

| **Walmart** | ~$2.9 billion | **No refunds**—will lower prices instead  |

| **Home Depot** | ~$730 million | **Covering gas/diesel costs**  |

| **Nike** | ~$986 million | **Silent** on consumer refunds  |

| **Apple** | ~2% boost to gross margins | **Investing in domestic manufacturing**  |

Target CFO Jim Lee confirmed the company will not issue refunds. Instead, Target will use the nearly $1 billion to "invest in price" to offer better value to customers .

Home Depot's CFO Richard McPhail told investors the company would use its $730 million refund to cover "new costs from pricier gasoline and diesel" .

Walmart executives said they received most of the $2.9 billion they were eligible for and will use those dollars to lower prices rather than provide direct refunds .

### The Lawsuits

Some companies are facing class action lawsuits from consumers demanding refunds:

- **Costco**: Being sued by shoppers demanding refunds .

- **Nintendo**: Asked a court to dismiss a lawsuit, arguing that "plaintiffs received exactly what they paid for: Nintendo products that plaintiffs knowingly and voluntarily purchased at the advertised price" .

---

## Why Companies Say They Won't Refund Consumers

Retailers argue that it's nearly impossible to calculate how much each customer paid in tariffs. The import taxes were rarely tracked with individual products and were often spread across the supply chain .

As one expert put it: "It would be an enormous cost to figure out how to get back the money to all a company's customers" .

Some companies, like Target and Walmart, argue that using the refunds to lower prices will benefit consumers more broadly—even if they don't get a direct check .

---

## What This Means for You

If you paid higher prices due to tariffs, your chances of getting a direct refund are slim—unless you imported the product directly through a shipping company like UPS or FedEx.

**What you can do:**

1. **Check if you imported anything directly.** If you used UPS, FedEx, or DHL, you may be eligible for a refund .

2. **Watch for class action lawsuits.** Companies like Costco and Nintendo are already facing legal challenges. If a case is certified and a settlement approved, official notices will explain how to participate .

3. **Be skeptical of unsolicited offers.** There is no general federal program for consumer tariff refunds. Be suspicious of any call, text, or email asking for a fee to "release" a refund .

4. **Pay attention to prices.** Retailers like Target and Walmart say they'll use refunds to lower prices. Whether that actually happens remains to be seen .

---

## The Bigger Picture: A $100 Billion Transfer

Since the Supreme Court ruling, the Trump administration has certified $100 billion in tariff refunds out of the $166 billion collected . That money is flowing to corporations—not the American consumers who ultimately paid for the tariffs.

Ettlinger put it bluntly:

> **"It's important to keep an eye on what the real sin here is, which is that the government imposed illegal tariffs"** .

For consumers like Sandra Alonso, the frustration is personal. She paid an extra $3,500 for her wheelchair—and she's still waiting for her cut.

---

## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, legal, or professional advice. Tariff refunds, government policies, and legal proceedings are subject to change. You should consult with qualified professionals for guidance on specific issues.

Marvell Smashes Q2 Expectations with Record Revenue—But AI's Real Payoff Is Still Years Away

 

Marvell Smashes Q2 Expectations with Record Revenue—But AI's Real Payoff Is Still Years Away

**The chipmaker's data center business hit a record $2.17 billion as AI infrastructure demand accelerated, but a cautious gross margin outlook and back‑loaded custom silicon revenue tempered investor enthusiasm. The stock's reaction remains muted as the market digests the long‑term story.**

---

## Record Revenue, Raised Guidance, and a "Massive" AI Opportunity

Marvell Technology delivered a second-quarter performance that, by almost any measure, was exceptional. Revenue hit a record **$2.739 billion**, up 13% sequentially and 37% year-over-year, beating the midpoint of the company's own guidance . Adjusted earnings per share of $0.94 also topped expectations .

The engine of this growth was unmistakably the data center segment, which generated a record **$2.17 billion** in revenue—46% higher than a year ago—and now accounts for nearly 80% of the company's total revenue . CEO Matt Murphy described the opportunity as "massive" and "game-changing" for Marvell over the next six years .

**The company raised its full‑year outlook for fiscal 2027 to roughly $12 billion (approximately 45% annual growth) and for fiscal 2028 to $18 billion (about 50% growth)** . That $1.5 billion raise for fiscal 2028 was driven in large part by strengthening expectations in scale‑up optics—a category management said is growing faster than it had anticipated just three months earlier .

---

## Why the Stock Reaction Was Muted

Despite the strong headline numbers and a robust outlook, Marvell's stock didn't soar. Several factors contributed to the tempered response.

### 1. Gross Margin Pressure from Custom Silicon Mix

While revenue is growing rapidly, non‑GAAP gross margins are expected to decline modestly to **57.5%–58.5%** in the third quarter due to product mix, particularly the ramp of the custom silicon business . The company expects gross margins to remain in a similar range through fiscal 2028, limiting near‑term margin expansion even as revenue scales . CFO Dan Durn did note, however, that non‑GAAP operating margins are expected to enter the 38%–40% target range in the fiscal fourth quarter and reach the upper end of that range during fiscal 2028 .

### 2. The Real AI Payoff Is Still Ahead

The most significant portion of Marvell's expanded custom silicon opportunity with a key hyperscaler—widely believed to be Google—is back‑loaded. While the 7‑year agreement reportedly carries a cumulative revenue potential of **$120 billion** , management emphasized that the meaningful impact will not materialize until fiscal 2029 and beyond .

Investors looking for immediate AI revenue gains were left waiting. However, CEO Murphy confirmed that the custom business is expected to more than double year‑over‑year in fiscal 2028, with "significant upside" to the prior $10+ billion target for fiscal 2029 . Marvell plans to provide more detailed long‑term custom revenue guidance at its October 6 Investor Day .

### 3. Communications Segment Remains a Drag

Revenue from the communications and "other" end market is expected to decline in the low‑to‑mid teens sequentially and year‑over‑year in the third quarter, reflecting lumpiness that continues to persist . This serves as a reminder that Marvell's business is not yet fully immune to the broader semiconductor cycle.

---

## The Broader AI Narrative: A "Multi‑Year" Buildout

What the earnings call made clear is that the AI infrastructure buildout is not a one‑quarter phenomenon. Marvell is positioning itself across three key domains of AI networking:

- **Scale‑out**: Interconnecting servers within a data center—the company's largest segment, with interconnect revenue expected to grow more than 70% this year .

- **Scale‑across**: Connecting multiple data centers as AI clusters outgrow single locations, an area where Marvell's 1.6T DCI modules are expected to generate $1 billion in annualized revenue by fiscal 2028 .

- **Scale‑up**: High‑bandwidth, low‑latency connections directly to XPUs, where optics are expected to replace copper starting as early as next year. Marvell is investing in both NPO and CPO optical interconnects and purpose‑built switches supporting multiple protocols .

Management described agentic AI—where a single user request triggers multiple, interlinked model queries—as another tailwind that will "substantially increase" data traffic and memory requirements .

---

## What to Watch Next

- **October 6 Investor Day**: Marvell will provide a "robust review" of revenue through the end of the decade, with more detail on the custom silicon opportunity and long‑term growth framework .

- **Custom Silicon Ramp**: Analysts are watching whether the custom business can maintain its "double‑plus" growth trajectory into fiscal 2029. A Melius Research analyst pressed on this, and management reiterated that the prior custom revenue models should move higher from fiscal 2029 onward .

- **Gross Margin Trajectory**: Investors will monitor whether operating leverage can offset gross margin pressure as revenue scales. The target remains 38%–40% operating margin in the near term .

---

## Frequently Asked Questions

**Q: What were Marvell's Q2 2027 results?**

Revenue reached a record $2.739 billion, up 37% year‑over‑year, with non‑GAAP EPS of $0.94, beating guidance. Data center revenue hit $2.17 billion, up 46% year‑over‑year .

**Q: What is Marvell's fiscal 2028 revenue outlook?**

The company raised its fiscal 2028 revenue outlook to approximately **$18 billion**, representing roughly 50% year‑over‑year growth .

**Q: What is Marvell's deal with Google?**

Marvell expanded a commercial agreement with Google covering multiple custom programs, including XPU attach products, with revenue potential in the hundreds of billions over the life of the agreement. The most significant impact is expected in fiscal 2029 and beyond .

**Q: What are scale‑up optics and why do they matter?**

Scale‑up optics refer to the optical interconnects that will replace copper as AI clusters grow. Marvell expects deployments to begin as early as next year, and the company's fiscal 2028 revenue outlook for scale‑up optics has "increased meaningfully" .

**Q: Why did Marvell's stock not surge after earnings?**

Muted reaction was driven by gross margin pressure from the custom silicon mix, a communications segment drag, and the fact that the most significant custom revenue payoff is still in fiscal 2029 and beyond .

---

## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Market conditions, stock prices, and company performance are subject to rapid change. Past performance is not indicative of future results. You should consult with a qualified financial advisor before making any investment decisions.

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*Published: August 28, 2026*

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**Tags:** Marvell Technology, MRVL, earnings, Q2 2027, AI infrastructure, data center, custom silicon, optics, interconnect, switching, gross margin, Google, XPU, scale-out, scale-up, semiconductor, AI chips, investor relations, stock market, financial results

Cyclospora Outbreak Expands to 20 States as FDA Issues Highest-Level Warning

 

Cyclospora Outbreak Expands to 20 States as FDA Issues Highest-Level Warning

## The parasite that causes "explosive diarrhea" has now sickened more than 11,400 people and is linked to two deaths in Michigan. Here's what you need to know about the largest cyclosporiasis outbreak in U.S. history.

---

### A Public Health Crisis Continues to Grow

Just when it seemed like the cyclospora outbreak might be peaking, federal health officials have confirmed that the outbreak is still expanding. On August 27, 2026, the FDA announced that three more states—**Georgia, Tennessee, and Texas**—have been linked to the outbreak, bringing the total to **20 states** .

The number of confirmed cases has climbed to **11,458**, up from roughly 10,900 the previous week . This is already the largest cyclosporiasis outbreak in U.S. history, surpassing the previous record of about 4,700 cases in 2019 . Nationwide, the CDC has reported approximately **17,180 confirmed cases** and **922 hospitalizations** from cyclospora this year .

**Two deaths have been reported in Michigan**, the hardest-hit state. Both individuals had "significant underlying health conditions," according to Michigan health officials .

---

### The Source: Taylor Farms de Mexico

The investigation has focused on iceberg lettuce grown at a farm in central Mexico operated by **Taylor Farms de Mexico** . Taylor Farms, a major U.S. produce supplier based in California, voluntarily recalled all iceberg lettuce sourced from the region on July 17, 2026 .

The recalled products were distributed to **27 states** and sold under multiple brand names, including Walmart's Marketside brand, and were also supplied to restaurants including Taco Bell . The CDC initially warned consumers to avoid eating shredded lettuce from Taco Bell locations in five Midwestern states, and the chain has since removed the affected lettuce from its supply chain nationwide .

The FDA has now classified the recalled lettuce at the **highest possible risk level**, reflecting the severity of the public health threat . FDA and CDC officials have initiated on-site inspections and sampling at Taylor Farms de Mexico's processing plant in Guanajuato, about 185 miles northwest of Mexico City .

---

### What Is Cyclospora?

Cyclospora is a microscopic parasite that infects the small intestine and causes a gastrointestinal illness called cyclosporiasis . The parasite is typically transmitted through food or water contaminated with feces—most commonly when produce is irrigated or washed with contaminated water .

**Common symptoms include:**

- Watery diarrhea, often "frequent and sometimes explosive" 

- Loss of appetite

- Abdominal cramps and bloating

- Nausea and fatigue

- Low-grade fever

- Weight loss

Symptoms typically appear **one to two weeks** after exposure, and the illness can last for weeks or even months without treatment. Unlike some other foodborne illnesses, cyclospora is **not** typically transmitted from person to person . Outbreaks tend to occur most often in late spring and summer.

---

### States Affected

The 20 states with confirmed cases now include :

- Arkansas

- Georgia (new)

- Illinois

- Indiana

- Iowa

- Kansas

- Kentucky

- Maine

- Massachusetts

- Michigan

- Missouri

- Nebraska

- New Hampshire

- North Carolina

- Ohio

- Oklahoma

- Pennsylvania

- Tennessee (new)

- Texas (new)

- West Virginia

---

### What You Should Do

1. **Check your fridge.** If you have iceberg lettuce sourced from Mexico—especially Taylor Farms products—throw it away immediately .

2. **Don't eat recalled products.** Even if you bought the lettuce at a grocery store, it could be part of the recall. The recalled products have "best by" dates through August 3, 2026 .

3. **Wash your produce thoroughly.** Cyclospora is resistant to many common sanitizers. Scrubbing produce under running water is essential, though cooking vegetables to 158°F is the only sure way to kill the parasite.

4. **Watch for symptoms.** If you develop watery diarrhea, abdominal cramps, nausea, or fatigue, contact your healthcare provider and ask to be tested for Cyclospora.

5. **Stay informed.** The FDA and CDC continue their investigations, and the situation remains fluid.

---

### Frequently Asked Questions

**Q: How many people have been affected?**

A: The FDA has confirmed 11,458 cases across 20 states, with two deaths reported in Michigan . Nationwide, the CDC has reported approximately 17,180 confirmed cyclospora cases this year .

**Q: What caused the outbreak?**

A: The outbreak has been linked to shredded iceberg lettuce grown in central Mexico and supplied by Taylor Farms de Mexico . The company voluntarily recalled the affected products on July 17, and the FDA has issued its highest-level risk warning.

**Q: Which states are affected?**

A: The outbreak has now spread to 20 states, with Georgia, Tennessee, and Texas the most recent additions . The full list includes Arkansas, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Missouri, Nebraska, New Hampshire, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, and West Virginia.

**Q: Is Taco Bell still serving the affected lettuce?**

A: No. Taco Bell "worked swiftly to voluntarily remove the product from restaurants and the affected ingredient has been removed from our supply chain nationwide" . The recall has also affected other retailers including Walmart.

**Q: What are the symptoms and how long do they last?**

A: Symptoms include watery diarrhea (often explosive), loss of appetite, abdominal cramps, nausea, and fatigue . The illness can last for weeks or even months without treatment.

**Q: Is there a treatment?**

A: Yes. Cyclosporiasis is treatable with antibiotics. If you develop symptoms, contact your healthcare provider promptly.

---

### Conclusion: A Crisis Demanding Action

The cyclospora outbreak of 2026 is a stark reminder of the vulnerabilities in America's food supply chain. With more than 11,400 confirmed cases, 922 hospitalizations, and two deaths, it is already the worst outbreak of its kind in U.S. history .

The investigation has raised broader questions about food safety oversight. The FDA had not inspected Taylor Farms de Mexico's processing plant in **seven years** before this outbreak . Democratic lawmakers have called for answers from Taylor Farms and the administration, and food safety groups have urged Congress to rescind a measure delaying traceability requirements for high-risk foods until 2028 .

For now, the message is clear: **check your fridge, wash your produce, and stay informed.**

---

### Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute medical advice. If you suspect you have cyclosporiasis or are experiencing symptoms, contact a healthcare provider immediately. The information contained herein is based on publicly available sources as of August 28, 2026, and is subject to change as the investigation continues.