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Corporate profits had one of the largest increases in dollar value on record in the second quarter, and tariff refunds were a major factor.
Credit: ANGELA WEISS / AFP via Getty Images

Key Takeaways

• U.S. corporations earned record profits in the second quarter.
• Tariff refunds may be skewing economic data, making the U.S. corporate sector seem more profitable than it really is.
• Companies are also raising prices without raising wages for their workforces, further contributing to the profit boom.

You may not have seen any money back after a large swath of tariffs were overturned, but corporate America got plenty of tariff refunds—and it’s using them to haul in record-breaking profits.

That’s according to data released Wednesday from the Bureau of Economic Analysis, which showed annualized corporate profits were $400 billion higher in the second quarter than in the first. That’s the largest increase in dollar value on record, aside from the bounce-back after the most severe effects of the COVID-19 pandemic. The bottom line was boosted by an estimated $71 billion in tariff refunds companies got in May and June, according to an analysis of government data by The Tax Foundation think tank.

The data highlights how U.S. businesses are reaping the benefits of a windfall from the Supreme Court’s February decision to strike down the majority of President Donald Trump’s tariffs imposed in 2025. The money is going back to the pockets of companies that paid the import taxes, even though economists say most companies ultimately passed the cost along to consumers.

All those refunds are now showing up in the economic data and may be skewing it.

The refunds, along with the SpaceX IPO in June, “ may have boosted profits artificially,” Brian Wesbury, chief economist at First Trust, wrote in a commentary Wednesday.

Another force behind the corporate profit boom—companies are charging more for their products and services without passing the windfall along to their workers.

“The source of the profit gains is price increases,” John Ryding, chief economic advisor at Brean Capital, wrote in a commentary on the profit data Wednesday. “The price deflator for nonfinancial domestic corporate profits rose 4.3% on a year-over-year basis while unit labor costs advanced by a mere 0.4%. Inflation is a problem, but labor cost pressures are completely absent.”

Some of the refund money could eventually reach consumers. Several retailers have announced plans to give customers a portion in cases where customers got an actual bill for the tariffs. Amazon, for instance, said it would repay some tariffs to customers, although only in “a limited set of circumstances” where they could trace specific import charges.

“When we receive those refunds, we will proactively contact affected customers and automatically issue refunds to them,” Brian Olsavsky, Chief Financial Officer at Amazon, said in a recent earnings call. “Otherwise, like other large retailers, we’ll utilize refunds to continue to invest in low prices for customers.”

FedEx has also set up a website where customers who paid tariffs directly can claim refunds.

Costco plans to return “in some form” the portion of tariffs that were passed along to customers, CEO Ron Vachris said in an earnings call in May, although the company has yet to announce how it will do so.

Walmart, however, is among the major retailers that have not outlined plans to pay customers back directly, instead saying it would put its $2.9 billion in tariff refunds toward price cuts. Apple executives say the company is putting its estimated $2.2 billion tariff refund into building factories in the U.S.

Nvidia was one of the biggest gainers in the major indexes Thursday
Credit: Krisztian Bocsi / Bloomberg / Getty Images

Are investors back on the Nvidia bandwagon?

On Thursday, it looked like they were. Shares of Nvidia (NVDA) rose nearly 9%, closing in on their May record highs, after a strong showing from the chipmaker’s quarterly results. Several Wall Street analysts said the latest report helped ease worries heading into the event, though some concerns remain. 

Here’s what the analysts had to say. 

Details on Commitments Ease Financing Concerns

Investors and analysts have in recent weeks expressed concern about the way the company is using complex financing agreements to support its customers. Some now think that’s less of a worry.

“Management delivered a compelling vision of how strategic investments help NVDA secure its dominance in this once-in-a-generation AI buildout,” Bank of America analysts wrote Thursday, pointing to more details the company provided around its commitments and projected outlays. 

Nvidia said yesterday that it sees supply and capacity commitments peaking this year, along with equity investments and capital expenditures. Its new revenue-sharing model also allows Nvidia to essentially “double dip” on hardware and rental revenues in exchange for its financial backing, Jefferies wrote. 

Nvidia’s Customer Base Broadened, But Remains Concentrated

Nvidia’s customers are still heavily concentrated, with Citi analysts highlighting that one direct customer accounted for 16% of Nvidia’s revenue in the second quarter.

In the first half, just three customers represented nearly half of Nvidia’s sales. That compares to more than half of revenue coming from three customers in the first quarter.

Nvidia’s growing exposure to neoclouds, which may be less financially stable than the company’s more established hyperscaler clients, helps expand the company’s customer base but also “arguably increases the systemic risk,” wrote Jefferies. “If the GPU rental economics break down, it could be ugly.”

Vera Rubin’s Popularity Seen Countering Competition Worries

Morgan Stanley analysts said they believe Vera Rubin, Nvidia’s next-generation lineup after Blackwell, “will change the market share narrative,” given early signs of strong popularity. 

CFO Colette Kress told investors last night that the company has already received Vera Rubin orders from “every major hyperscaler,” among other companies. She said sales of the lineup are seen making up a fifth of current-quarter data center revenue.

“Allocation of Vera Rubin is going to be central to AI outcomes in the coming months, which should quiet competitive concerns,” Morgan Stanley wrote. The analysts said that with an $80 billion run rate in October, Rubin is nearly comparable to the size of Broadcom’s (AVGO) entire AI semiconductor business.

Growth Outlook ‘Likely Still Conservative’

Jefferies analysts said they believe Nvidia’s projection of 70% revenue growth for the next fiscal year is also “likely still conservative,” given CEO Jensen Huang’s comments about demand and the constraints created by limited supplies of key memory parts.

“The 70% growth is the floor with unconstrained demand closer to 100%. Off that base we see a clear path to $1T of revenue in FY29, a remarkable figure for a company of this scale,” Jefferies wrote.

Huang and Kress told investors that the company is working closely with its suppliers to raise capacity.

This article has been updated since it was first published to reflect more recent prices.

Wendy’s shares tumbled Thursday.
Credit: Katy Blackwood / NurPhoto via Getty Images

KEY TAKEAWAYS

• Wendy’s shares fell after reports that Trian Fund Management isn’t pursuing a take-private bid.
• The stock had surged nearly 15% two weeks ago on speculation of a potential buyout.

A report that Wendy’s may be taken private caused shares to soar two weeks ago. A new report is causing them to tumble.

Wendy’s (WEN) stock was recently down more than 13% after Reuters reported that Nelson Peltz’s Trian Fund Management has no plans to make a bid for Wendy’s right now. The move pulled the stock back from 2026 highs, though it remains off year-to-date lows seen in June.

Wendy’s shares soared nearly 15% on Aug. 12 after the Financial Times, citing people familiar with the matter, reported that Trian was “laying the groundwork for a take-private bid” for the burger chain.

Wendy’s shares had been in negative territory for the year before the FT‘s report two weeks ago. They entered today up nearly 9% for 2026, but are now back in the red.

The fast-food chain’s enterprise value was recently around $5.5 billion, according to Visible Alpha data.

With Thursday’s gains, CrowdStrike shares have nearly doubled in value from the start of the year.
Credit: Jonathan Raa / NurPhoto via Getty Images

Key Takeaways

• CrowdStrike shares surged Thursday after the company reported strong quarterly earnings and revenue growth.
• The cybersecurity firm also raised its full-year revenue forecast.

CrowdStrike shares are soaring after the cybersecurity software firm posted what CEO George Kurtz called “the best quarter in CrowdStrike’s history.” 

Shares of CrowdStrike (CRWD) surged 20% to finish just under $228, making the stock one of the biggest winners in the S&P 500 on a strong day for tech stocks and approaching the record high set earlier this month. The company said yesterday it generated $1.47 billion in revenue, up about 26% year-over-year, along with adjusted earnings of 31 cents per share in the quarter. Both figures topped analysts’ estimates. 

The cybersecurity software maker also lifted its full-year forecast, now projecting revenue of $5.99 billion to $6.01 billion, up from the prior range of $5.91 billion to $5.96 billion.

Oppenheimer analysts told clients the results showed the cybersecurity sector is “in the early stages of a multi-year investment cycle” driven by developments in AI. UBS analysts called the quarter “nothing short of stellar,” and said it proved how recent AI developments, including several cybersecurity and hacking incidents involving leading AI models, are driving companies to spend on cybersecurity.

Oppenheimer and UBS lifted their price targets for the stock to $250, while Morgan Stanley raised its target to $238 from $227.
With Thursday’s gains, CrowdStrike shares have nearly doubled in value from the start of the year.

This article has been updated since it was first published to reflect more recent prices.

Dollar General shares rose Thursday.
Credit: Chet Strange / Bloomberg via Getty Images

KEY TAKEAWAYS

• Dollar General shares rose after the company reported better-than-expected Q2 earnings and raised its full-year outlook.
• The latest guidance was well ahead of consensus Wall Street forecasts.

Dollar General shares closed Wednesday down for the year. They’re clawing their way back toward par today.

Shares of Dollar General (DG) were up some 5% in early Thursday trading after the discount retailer posted better-than-expected second-quarter results and lifted its full-year outlook.

Dollar General reported Q2 earnings of $2.48 per share on net sales that increased 5% year-over-year to $11.29 billion. Analysts polled by Visible Alpha had estimated $2.00 per share and $11.18 billion. Same-store sales growth of 3.5% topped expectations of about 2.6%, aided by a 2% rise in customer traffic and a 1.5% increase in average transaction amount.

The Goodlettsville, Tenn.-based company raised its fiscal 2026 projections for net sales growth, same-store sales growth, and EPS. The new guidance blew past Visible Alpha consensus forecasts.

Placer.ai data indicated ahead of the report that foot traffic had increased sequentially from May to July, as “its hyper-local footprint made it especially well positioned to capture quick, low-distance trips at a time when shoppers were paying closer attention to fuel costs.”

“Our results reflect continued momentum across the business,” said CEO Todd Vasos, who cited a fifth straight quarter of customer traffic growth and a sixth straight quarter of “comparable sales growth across all four merchandising categories.”

Dollar General said it intends to repurchase shares in the second half of the fiscal year, which ends Jan. 29, 2027.

Even with Thursday’s rise, shares of Salesforce remain in negative territory for the year.
Credit: Sheldon Cooper / SOPA Images / LightRocket / Getty Images

Key Takeaways

• Salesforce shares surged Thursday, a day after the enterprise software maker posted second-quarter results that exceeded analysts’ expectations and raised its full-year outlook.
• The company also announced an expanded AI partnership with Anthropic.

Salesforce stock is rallying after the enterprise software maker’s second-quarter results topped expectations.

Shares of Salesforce (CRM) popped nearly 23%, making it the biggest gainer in the Dow Jones Industrial Average Thursday. The company reported revenue of $11.35 billion, narrowly beating the $11.33 billion analyst consensus, while adjusted earnings per share of $5.90 doubled year-over-year and handily topped the $3.28 forecast.

Looking ahead, Salesforce lifted its full-year sales forecast to $46.1 billion to $46.4 billion, up from $45.9 billion to $46.2 billion previously. Adjusted EPS are now seen coming in between $10.21 and $10.25 for the full year, well above the prior range of $7.93 to $7.99.

Alongside last night’s earnings, Salesforce also announced an expanded deal with Anthropic to introduce “Claudeforce” to its customers, combining Anthropic’s advanced AI models with Salesforce’s software and broad customer base. JPMorgan analysts said the deal could help ease worries about AI disruption, as Salesforce shows willingness to partner with AI leaders rather than competing directly with them.

Analysts from JPMorgan, Morgan Stanley, and Jefferies all hiked their price targets for Salesforce’s stock following the report. Morgan Stanley analysts called the quarter “a step in the right direction,” but said they are maintaining a neutral rating until they see lasting evidence of accelerating sales from Salesforce’s new AI products.

Even with Thursday’s rise, shares of Salesforce remain in negative territory for the year. The stock was down more than 20% for 2026 through Wednesday’s close. 

This article has been updated since it was first published to reflect more recent prices.

Nvidia guided investors toward $108 billion in Q3 revenue.
Credit: Getty Images

KEY TAKEAWAYS

• Nvidia shares rose after the company reported stronger-than-expected second-quarter sales and earnings.
• The company’s third-quarter revenue guidance of $108 billion exceeded Wall Street’s $105 billion estimate.

Investors still want in on AI—or, at least, Nvidia’s piece of it.

The latest data point is the Thursday-morning action in shares of Nvidia (NVDA), which were rising 6% after the chip giant late yesterday reported second-quarter sales and EPS that came in higher than Wall Street expected. 

Investors likely focused on the outlook—CEO Jensen Huang said the AI buildout is still at “full steam”—more than the backward-facing numbers. Nvidia delivered guidance of $108 billion in third-quarter revenue, which was ahead of the Street’s consensus closer to $105 billion. 

CFO Colette Kress on the company’s conference call suggested that it could rise some 70% in the next fiscal year despite some supply bottlenecks. 

“The quarter was strong, but the real surprise was management describing demand that could support growth well beyond what the market had penciled in,” Direxion Head of Capital Markets Jake Behan said in emailed comments. “The debate shifted from whether AI spending is peaking to how much longer this buildout can continue.” 

Nvidia’s stock finished yesterday’s session up 12% year-to-date. 

News of the day for Aug. 27, 2026

Market participants breathed a sigh of relief after Nvidia’s earnings report topped expectations, as the chipmaker’s CEO, Jensen Huang, said the “AI infrastructure buildout is at full steam.”
Credit: Michael Nagle / Bloomberg / Getty Images

Stock futures are rising this morning as Nvidia’s blockbuster results power the AI trade; Nvidia shares are surging after the chipmaker’s quarterly report topped Wall Street estimates; Salesforce stock is rallying after its own strong report and the announcement of an expanded partnership with Anthropic; CrowdStrike shares are also on the rise thanks to a record quarter; and AI chip designer Marvell Technology is set to deliver its results after the closing bell today. Here’s what you need to know.

Stock Futures Rise as Nvidia Results Power AI Trade

Stock futures are pointing to a higher open after AI chipmaker Nvidia blew past Wall Street estimates with its latest quarterly report. Futures tied to the tech-heavy Nasdaq and the benchmark S&P 500 were recently up 0.8% and 0.4%, respectively, while Dow Jones Industrial Average futures hovered near unchanged. Each of the major indexes inched lower yesterday, with the Dow snapping a three-day winning streak, as inflation data came in higher than expected and markets looked ahead to several big-name tech earnings reports after the closing bell. WTI crude oil futures were slightly higher this morning at $82.50 a barrel as the Iran war approaches the end of its sixth month with little progress in U.S.-Iran talks. Gold futures were holding steady at $4,650 an ounce, while bitcoin traded at $79,500 after once again topping $80,000 this morning. The yield on the 10-year Treasury was little-changed at 4.66%.

Nvidia Stock Jumps as Results Blow Past Estimates

Shares of Nvidia (NVDA) are rallying this morning after the AI chip giant late yesterday reported second-quarter sales and profits that came in higher than Wall Street expected. The company posted revenue of $96.22 billion and adjusted earnings of $2.22 per share; it also forecast $108 billion in third-quarter revenue, which was also ahead of the Street’s consensus. CEO Jensen Huang said the AI buildout remains at “full steam,” and during a conference call expressed further confidence in the AI industry by saying he regrets not investing more money in OpenAI and Anthropic. CFO Colette Kress, meanwhile, on the call tackled concerns about the company’s financing agreements with customers, saying that “some will call this circular financing. We see it differently.” Worries about the sustainability of spending in the AI sector have pressured stocks recently, with some noting that Nvidia and other chipmakers are relying on a few large companies for much of their revenue. Nvidia shares were up 6% in recent premarket trading.

Salesforce Stock Pops on Earnings, Anthropic Deal

Salesforce (CRM) shares are also surging after the enterprise software maker reported better-than-expected results and announced a major AI deal. Salesforce reported revenue of $11.35 billion, narrowly topping estimates, while adjusted earnings per share of $5.90 doubled year-over-year. The company also lifted its full-year sales and profit forecasts. Alongside last night’s earnings report, Salesforce announced an expanded deal with Anthropic to bring “Claudeforce” to its customers, combining Anthropic’s advanced AI models with Salesforce’s established software and customer base. Salesforce shares were up is 10% ahead of the opening bell, on track to hit their highest level since January.

CrowdStrike Surges on Strong Results, Outlook

CrowdStrike (CRWD) shares are soaring after the cybersecurity software firm posted what CEO George Kurtz called “the best quarter in CrowdStrike’s history.” The company said yesterday it generated $1.47 billion in revenue, up about 26% year-over-year, along with adjusted earnings of 31 cents per share in the quarter, each topping what analysts had expected. The software maker also lifted its full-year forecasts. Worries about the company’s business being disrupted by AI have recently faded as developments to some of the major AI models have led many analysts to forecast a bump in cybersecurity spending. CrowdStrike shares were up 9% recently.

Marvell Earnings Set to Be Released Later Today

Chip designer Marvell Technology (MRVL) is set to release its results after markets close today. Analysts expect the company to report revenue of $2.71 billion, a 35% year-over-year jump, while adjusted earnings are seen climbing to 93 cents per share. Marvell shares have pulled back from the all-time high they set back in June, but are still up nearly 200% from where they started the year, boosted bt strong demand for AI hardware and recent deals including a new partnership with Google parent Alphabet (GOOGL). Marvell shares were up 4% in premarket trading, tracking the broader move higher for chip stocks.

Half of current and future beneficiaries want higher earners to pay more into Social Security.
Credit: Wesley Lapointe / Getty Images

KEY TAKEAWAYS

• Social Security’s retirement and survivor trust fund is projected to run short in 2032, leaving it able to pay only 78% of scheduled benefits.
• About half of Americans surveyed would raise taxes on higher earners to fix the funding gap.
• They also backed higher employer payroll taxes and reduced benefits for high earners.

Social Security’s looming shortfall has prompted rare bipartisan agreement, with Democrats and Republicans ranking the same three fixes as their preferred options.

Raising taxes on higher earners drew the most support of any fix, and was the top choice in both parties, according to a recent Nationwide Retirement Institute survey. Fifty-one percent backed it, but it also split the parties most, with 56% of Democrats in favor compared with 43% of Republicans. The other two leading fixes drew support within a point or two across party lines.

Workers now pay Social Security taxes on the first $184,500 of earnings—any wages beyond that escape the tax. Proposals have included scrapping the cap entirely or applying a higher rate on earnings above $400,000.

Why This Matters to You

With the midterm elections approaching, Social Security could become an important campaign issue. Three-quarters of respondents said a candidate’s position on Social Security reform will be a major factor in how they vote in future elections.

The Old-Age and Survivors Insurance trust fund, which pays retirement and survivor benefits, is projected to run out in the fourth quarter of 2032. At that point, unless Congress acts, benefits would be cut by an estimated 22%, according to the 2026 Social Security Trustees Report.

Experts say Congress has three choices: raise taxes, cut benefits, or do a mix of both. But lawmakers have been wary of these unpopular options.

Still, 80% of U.S. adults who receive or expect to receive Social Security say the program needs to change, according to the Nationwide survey. That includes 82% of Democrats and 78% of Republicans. But only about three in five expect the government to act before benefits are reduced.

After taxing high earners, raising employer payroll taxes ranked second, at 42%. Employers and workers each pay 6.2%, splitting the 12.4% tax that funds Old-Age and Survivors Insurance and Disability Insurance. The self-employed pay the full 12.4%.

IMPORTANT

Many Americans are unprepared for changes to Social Security benefits. Nationwide’s survey respondents estimated on average that the fund would last another 17 years, about a decade longer than the trustees estimate. Only one in five says they know how they’ll adjust if benefits are cut.

Reducing or eliminating benefits for high earners ranked third, at 38%. But benefit cuts remain a hard sell, particularly among recipients who say their checks already aren’t keeping pace with prices.

About three-quarters (74%) of current recipients told Nationwide that rising costs have forced them to change how they spend or save. Beneficiaries report trimming discretionary spending, cutting into essentials, and pulling more from savings—financial shifts that could become more difficult should the trust fund run out without Congressional action.

Boston Scientific shares have lost roughly half their value in 2026 so far.
Credit: Sheldon Cooper / SOPA Images / LightRocket / Getty Images

Key Takeaways

• Boston Scientific shares lost ground Wednesday after the company disclosed a cyberattack that caused global disruptions to its operations.
• The company said it’s not sure yet when a full restoration of affected functions will be reached.

Boston Scientific’s stock is sliding in the wake of a major cyberattack, adding to its recent woes.

Shares of Boston Scientific (BSX) shares were down about 3% in recent trading, after the Marlborough, Mass.-based firm disclosed in a regulatory filing that yesterday it “identified a cybersecurity incident affecting certain of its information technology systems that has resulted in a global disruption to the Company’s operations.”

The maker of medical devices said the incident “caused, and is expected to continue to cause, disruptions and limitations of access ... including the ability to process and ship customer orders.” Boston Scientific added that it while it “is working diligently to restore affected functions and systems access, the timeline for a full restoration is not yet known.”

Because Boston Scientific’s investigation is ongoing, it said it “has not yet determined whether the incident is reasonably likely to have a material impact.”

Shares of Boston Scientific have lost roughly half their value in 2026 so far.