Technology

DuPont Reports Second Quarter 2026 Results

Published

3 months ago

August 4, 2026

Exceeds Second Quarter 2026 Guidance

Raises Full Year 2026 Guidance

Second Quarter 2026 Highlights

Net Sales of $1.8 billion increased 4%; organic sales increased 4% versus year-ago periodGAAP Income from continuing operations of $191 million; operating EBITDA of $448 millionGAAP EPS from continuing operations of $1.37; adjusted EPS of $1.88Cash provided by operating activities from continuing operations of $400 million; transaction-adjusted free cash flow of $326 million representing 127% conversionAnnounces intent to repurchase $250 million of shares in the third quarterAnnounces the Company’s Global Industry Classification Standard (GICS) code has changed to Industrials effective July 31, 2026

WILMINGTON, Del., Aug. 4, 2026 /PRNewswire/ — DuPont (NYSE: DD) announced its financial results(1) for the second quarter ended June 30, 2026 and raised financial guidance for the full year 2026.

“We delivered another strong quarter, exceeding our financial guidance and demonstrating our focus on consistent execution” said Lori Koch, DuPont Chief Executive Officer. “Mid-single digit organic growth, strong margin expansion, coupled with robust adjusted EPS growth and free cash flow generation underscore the strength of our market-leading businesses and reflect disciplined execution of our strategic priorities, supported by our ongoing focus on excellence and productivity.”

“We are delivering on our commitments, creating value for all of our key stakeholders and further strengthening the foundation for sustainable, long-term profitable growth,” Koch concluded.

Second Quarter 2026 Consolidated Results(1)

Dollars in millions, except EPS

2Q’26

2Q’25

Change

vs. 2Q’25

Organic Sales (2)

vs. 2Q’25

Net sales

$1,819

$1,749

4 %

GAAP Income from continuing operations

$191

$24

n.m.

Operating EBITDA(2)

$448

$423

6 %

Operating EBITDA margin(2) %

24.6 %

24.2 %

40 bps

GAAP EPS from continuing operations

$1.37

$0.17

n.m.

Adjusted EPS(2)

$1.88

$1.27

48 %

Cash provided by operating activities – cont. ops.

$400

$74

n.m.

Transaction-adjusted free cash flow(2)

$326

$107

205 %

Net sales

Net sales were up 4% on a 4% increase in organic sales.4% organic sales growth in Healthcare & Water Technologies; 3% organic sales growth in Diversified Industrials.

GAAP Income from continuing operations

GAAP Income/GAAP EPS from continuing operations improved on higher segment earnings and lower interest expense and transaction costs.

Operating EBITDA

Operating EBITDA increased on organic growth and productivity.

Adjusted EPS

Adjusted EPS increased on higher segment earnings, lower net interest expense and a lower tax rate.

Cash provided by operating activities from continuing operations

Cash provided by operating activities from continuing operations in the quarter of $400 million, capital expenditures of $76 million and separation-related transaction costs and other payments of $2 million resulted in transaction-adjusted free cash flow and related conversion of $326 million and 127%, respectively.

(1)

Results and cash flows are presented on a continuing operations basis. See page 6 for further information, including the basis of presentation included in this release.

(2)

Organic sales, operating EBITDA, operating EBITDA margin, adjusted EPS, transaction-adjusted free cash flow and transaction-adjusted free cash flow conversion are non-GAAP measures and only reflect continuing operations. See page 6 for further discussion, including a definition of significant items. Reconciliation to the most directly comparable GAAP measure, including details of significant items begins on page 13 of this communication.

Second Quarter 2026 Segment Highlights

Healthcare & Water Technologies

Dollars in millions

2Q’26

2Q’25

Change

vs. 2Q’25

Organic Sales(2)

vs. 2Q’25

Net sales

$856

$817

5 %

4 %

Operating EBITDA

$258

$248

4 %

Operating EBITDA margin %

30.1 %

30.4 %

(30) bps

Net sales

Net sales increased 5% on organic sales growth of 4% and a currency benefit of 1%.Healthcare Technologies sales up mid-single digits on an organic basis on broad-based growth led by personal protection and biopharma.Water Technologies sales up low-single digits on an organic basis on continued strength in industrial water and semiconductor markets, partially offset by weakness in the Middle East.

Operating EBITDA

Operating EBITDA increased on organic growth and productivity, partially offset by growth investments.Operating EBITDA margin of 30.1% decreased 30 basis points as organic growth and productivity were more than offset by less favorable mix and growth investments.

Diversified Industrials

Dollars in millions

2Q’26

2Q’25

Change

vs. 2Q’25

Organic Sales(2)

vs. 2Q’25

Net sales

$963

$932

3 %

Operating EBITDA

$213

$199

7 %

Operating EBITDA margin %

22.1 %

21.4 %

70 bps

Net sales

Net sales increased 3% on organic sales growth in the quarter.Building Technologies sales up low-single digits on an organic basis due to growth in residential and non-residential construction markets.Industrial Technologies sales up mid-single digits on an organic basis on continued strength in aerospace coupled with growth in electric vehicle applications.

Operating EBITDA

Operating EBITDA and margin increased on organic growth, favorable mix and productivity.

2026 Financial Outlook

Dollars in millions, except EPS

2H’26E

Full Year 2026E

Net sales

$3,660 – $3,690

$7,160 – $7,190

Operating EBITDA(2)

$890 – $910

$1,750 – $1,770

Adjusted EPS(2)

$3.65 – $3.80

$7.17 – $7.32

“Our strong execution and market-driven growth continue to translate into higher earnings and free cash flow generation. As a result of our second quarter outperformance, we are again raising the midpoint of our full-year 2026 operating EBITDA guidance to approximately $1.76 billion and adjusted EPS guidance to $7.24 per share, while increasing our expectation for organic sales growth to slightly above 4%,” said Antonella Franzen, DuPont Chief Financial Officer.

“With continued strength across healthcare, industrial water, and aerospace end-markets, we expect mid-single digit organic sales growth in the second half and remain focused on driving profitable growth and value creation for shareholders.” Franzen concluded.

Conference Call

The Company will host a live webcast of its quarterly earnings conference call with investors to discuss its results and business outlook beginning today at 8:00 a.m. ET. The slide presentation that accompanies the conference call will be posted on the DuPont’s Investor Relations Events and Presentations page. A replay of the webcast also will be available on the DuPont’s Investor Relations Events and Presentations page following the live event.

About DuPont

DuPont (NYSE: DD) is a global innovation leader, providing advanced solutions that help transform industries and improve everyday life across our key markets of healthcare, water, construction, and industrial. More information about the company, its businesses and solutions can be found at www.dupont.com. Investors can access information included on the Investor Relations section of the website at investors.dupont.com.

DuPontTM and all products, unless otherwise noted, denoted with TM, SM or ® are trademarks, service marks or registered trademarks of affiliates of DuPont de Nemours, Inc.

Overview

On May 26, 2026, DuPont’s Board of Directors announced a reverse stock split of the Company’s common stock, par value $0.01 per share, at a ratio of 1-for-3, as well as a reduction in the number of authorized shares of its common stock by a corresponding ratio (the “Reverse Stock Split”), as approved by shareholders. The Reverse Stock Split became effective on June 24, 2026. All share and share-related information presented in these interim Consolidated Financial Statements has been retroactively adjusted in all periods presented to reflect the decreased number of shares resulting from the Reverse Stock Split and related impacts.

On April 1, 2026, DuPont completed the sale of the Aramids business (the “Aramids Business” and the divestiture of the Aramids Business, the “Aramids Divestiture”) to Arclin, a portfolio company of an affiliate of TJC LP for pre-tax cash proceeds of approximately $1.2 billion, subject to customary transaction adjustments, a note receivable in the principal amount of $300 million (the “Aramids Note Receivable”) and a non-controlling common equity interest (the “Aramids Equity Consideration”), valued at $325 million, in New Arclin U.S. Holding Corp., which now owns the Arclin global materials business and the Aramids Business. The financial results of the divested Aramids Business are reflected in DuPont’s interim Consolidated Financial Statements as discontinued operations, along with comparative periods.

On November 1, 2025, DuPont completed the separation of its semiconductor and interconnect solutions businesses (the “Electronics Business” and the separation of the Electronics Business, the “Electronics Separation”) into an independent public company, Qnity Electronics, Inc. (“Qnity”), by way of the distribution to DuPont’s stockholders of record as of October 22, 2025 of all the issued and outstanding common stock of Qnity on November 1, 2025 (the “Qnity Distribution”). As a result, the financial results of the divested Electronics Business are reflected in DuPont’s interim Consolidated Financial Statements as discontinued operations for all periods.

Cautionary Statement Regarding Forward-looking Statements

Certain statements in this release may be considered forward-looking statements, within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements often contain words such as “expect”, “anticipate”, “intend”, “plan”, “believe”, “seek”, “see”, “will”, “would”, “target”, “outlook”, “stabilization”, “confident”, “preliminary”, “initial”, “continue”, “may”, “could”, “project”, “estimate”, “forecast” and similar expressions and variations or negatives of these words. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements address matters that are, to varying degrees, uncertain and subject to risks, uncertainties, and assumptions, many of which are beyond DuPont’s control, that could cause actual results to differ materially from those expressed in any forward-looking statements.

Forward-looking statements are not guarantees of future results. Some of the important factors that could cause DuPont’s actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to (i) the ability to realize the intended benefits of the Electronics Separation and the Qnity Distribution, including achievement of the intended tax treatment, contractual allocation to, and assumption by Qnity of certain liabilities, including certain legacy liabilities with respect to per- and polyfluoroalkyl substances (“PFAS”) and the possibility of disputes, litigation or unanticipated costs in connection with the Electronics Separation and Qnity Distribution; (ii) the impact of the Aramids Divestiture on DuPont’s balance sheet, financial condition and future results of operations; (iii) risks and costs related to the impact of the arrangement to share future eligible PFAS costs by and among DuPont, Corteva, Inc. and The Chemours Company, including the outcome of pending or future litigation related to PFAS or PFOA, which includes personal injury claims and natural resource damages claims; the extent and cost of ongoing and potential future remediation obligations; and changes in laws and regulations applicable to PFAS chemicals; (iv) the failure to realize expected benefits and effectively manage and achieve anticipated synergies and operational efficiencies in connection with the Electronics Separation, the Aramids Divestiture and completed and future, if any, divestitures, mergers, acquisitions, and other portfolio management, productivity and infrastructure actions; (v) risks and uncertainties that are outside the Company’s control but adversely impact the overall environment in which DuPont, its customers and/or its suppliers operate, including changes in economic, political, regulatory, international trade, geopolitical, military conflicts, capital markets and other external conditions, including pandemics and responsive actions, as well as natural and other disasters or weather-related events; (vi) the ability to offset increases in cost of inputs, including raw materials, energy and logistics; (vii) the risks and uncertainties associated with continuing or expanding geopolitical conflicts or trade disputes or restrictions and responsive actions, new or increased tariffs or export controls, including on exports to China of U.S.-regulated products and technology; (viii) other risks to DuPont’s business and operations, including the risk of impairment; (ix) risks and uncertainties in connection with completing the $2 billion share buyback announced on November 6, 2025, including timeline, associated costs and the possibility that the authorization may be suspended or discontinued prior to completion; (x) the ability to realize the intended benefits of the Reverse Stock Split; (xi) the impact of the invalidation of certain tariffs imposed under the International Emergency Economic Powers Act and (xii) other risk factors discussed in DuPont’s most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.

Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business or supply chain disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on DuPont’s consolidated financial condition, results of operations, credit rating or liquidity. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. DuPont assumes no obligation to publicly provide revisions or updates to any forward-looking statements whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

Non-GAAP Financial Measures

Unless otherwise indicated, all financial metrics presented reflect continuing operations only.

This communication includes information that does not conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company, including allocating resources. DuPont’s management believes these non-GAAP financial measures are useful to investors because they provide additional information related to the ongoing performance of DuPont to offer a more meaningful comparison related to future results of operations. These non-GAAP financial measures supplement disclosures prepared in accordance with U.S. GAAP, and should not be viewed as an alternative to U.S. GAAP. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Reconciliations for these Non-GAAP measures to U.S. GAAP are provided in the Selected Financial Information and Non-GAAP Measures starting on page 12. Non-GAAP measures included in this communication are defined below. The Company has not provided forward-looking U.S. GAAP financial measures or a reconciliation of forward-looking non-GAAP financial measures to the most comparable U.S. GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of certain future events. These events include, among others, the impact of portfolio changes, including asset sales, mergers, acquisitions, and divestitures; contingent liabilities related to litigation, environmental and indemnifications matters; impairments and discrete tax items. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP results for the guidance period.

Key Terms

Significant Items

Significant items are items that arise outside the ordinary course of business for the Company and includes items for nonconsolidated affiliates, that the Company’s management believes may cause misinterpretation of underlying business and investment performance, both historical and future, based on a combination of some or all of the item’s size, unusual nature and infrequent occurrence. Management classifies as significant items certain costs and expenses associated with integration and separation activities related to transformational acquisitions and divestitures as they are considered unrelated to ongoing business performance. There were no significant items associated with nonconsolidated affiliates recorded for the three and six month periods ended June 30, 2026 and June 30, 2025.

Future Reimbursable Indirect Costs

Indirect costs, such as those related to corporate and shared service functions previously allocated to the separated Electronics Business and Aramids Business, do not meet the criteria for discontinued operations and are reported within continuing operations in all respective periods presented. The Company has, is, will or expects to be reimbursed in accordance with the applicable transition service agreements (“TSAs”) for the portion of indirect costs related to activities the Company is, will or expects to undertake on a transitional basis to support a) Qnity not beyond year end 2027 for services and 2040 for site leases and, b) the Aramids Business post the Aramids Divestiture, but not beyond 2028 (such indirect costs “Future Reimbursable Indirect Costs”). Services provided and costs reimbursed in accordance with the applicable TSAs include but are not limited to, costs associated with information technology services/support, product stewardship and regulatory support, facilities services, and shared property lease costs.

Future Reimbursable Indirect Costs do not meet the criteria for discontinued operations and therefore are included in both GAAP Net Income from Continuing Operations and in GAAP Cash provided by operating activities-continuing operations for all periods presented. Future Reimbursable Indirect Costs are excluded from Adjusted Earnings, Operating EBITDA and Transaction-Adjusted Free Cash Flow, each defined below. Such indirect costs that are not subject to future reimbursement are reported within continuing operations in Corporate and are included within Adjusted Earnings, Operating EBITDA, and Cash provided by operating activities-continuing operations.

Corporate DDOB Remediation Costs

Corporate DDOB Remediation Costs are environmental remediation costs, including certain investigate, remediate and restoration costs, associated with discontinued or divested operations, businesses or product lines (“Corporate DDOB Remediation Costs”). DDOB Remediation Costs are excluded from Adjusted Earnings and Operating EBITDA, as defined below, to provide better insight into the underlying business performance of the Company.

Non-GAAP Measure Definitions

Organic Sales

Organic Sales is defined as net sales excluding the impacts of currency and portfolio.

Adjusted Earnings

Adjusted Earnings is defined as income from continuing operations excluding the after-tax impact of significant items, after-tax impact of amortization expense of intangibles, the after-tax impact of non-operating pension / other post employment benefits (“OPEB”) credits / costs, Future Reimbursable Indirect Costs and Corporate DDOB Remediation Costs.

Adjusted Earnings is the numerator used in the calculation of Adjusted EPS, as well as the denominator in Adjusted Free Cash Flow Conversion.

Adjusted EPS

Adjusted EPS is defined as Adjusted Earnings per common share – diluted. Management estimates amortization expense in 2026 associated with intangibles to be about $275 million on a pre-tax basis, or approximately $1.54 per share.

Operating EBITDA, EBITDA Margin & Incremental Margin

The Company’s measure of profit/loss for segment reporting purposes is Operating EBITDA as this is the manner in which the Company’s chief operating decision maker (“CODM”) assesses performance and allocates resources. The Company defines Operating EBITDA as earnings (i.e., “Income from continuing operations before income taxes”) before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, excluding Future Reimbursable Indirect Costs, Corporate DDOB Remediation Costs, and adjusted for significant items. Reconciliations of these measures are provided on the following pages.

Operating EBITDA Margin is defined as Operating EBITDA divided by Net Sales.

Incremental Margin is the change in Operating EBITDA divided by the change in Net Sales for the applicable period.

Adjusted Free Cash Flow & Adjusted Free Cash Flow Conversion

Adjusted Free Cash Flow is defined as cash provided by/used for operating activities from continuing operations less capital expenditures and excluding the impact of cash inflows/outflows that are unusual in nature and/or infrequent in occurrence that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business liquidity. As a result, Adjusted Free Cash Flow represents cash that is available to the Company, after investing in its asset base, to fund obligations using the Company’s primary source of liquidity, cash provided by operating activities from continuing operations. Management believes Adjusted Free Cash Flow, even though it may be defined differently from other companies, is useful to investors, analysts and others to evaluate the Company’s cash flow and financial performance, and it is an integral measure used in the Company’s financial planning process. Management notes that there were no exclusions for items that are unusual in nature and/or infrequent in occurrence for the three and six month periods ended June 30, 2026.

Adjusted Free Cash Flow Conversion is defined as Adjusted Free Cash Flow divided by Adjusted Earnings. Management uses Adjusted Free Cash Flow Conversion as an indicator of our ability to convert earnings to cash.

Transaction Adjusted Free Cash Flow & Transaction Adjusted Free Cash Flow Conversion

Management believes supplemental non-GAAP financial measures including Transaction-Adjusted Free Cash Flow and Transaction-Adjusted Free Cash Flow Conversion (each defined below) provide an integral view of information on the Company’s underlying business performance during this period of transformational change. Management believes the Electronics Separation and Aramids Divestiture collectively represent a significant transformational change for the Company and separation-related transaction cost payments impact comparability to the Company’s continuing operations. Management believes Transaction-Adjusted Free Cash Flow, which may be defined differently from other companies, is useful to investors, analysts and others to evaluate the Company’s cash flow and financial performance, and it is an integral measure used in the Company’s financial planning process. These non-GAAP financial measures are not intended to represent residual cash flow for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.

Transaction-Adjusted Free Cash Flow is defined as cash provided by/used for operating activities from continuing operations less capital expenditures and removing the impact of separation-related transaction costs and other payment and cash inflows/outflows that are unusual in nature and/or infrequent in occurrence that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business liquidity.

Transaction-Adjusted Free Cash Flow Conversion is defined as Transaction-Adjusted Free Cash Flow excluding separation-related transaction costs, divided by Adjusted Earnings.

Separation-related transaction costs and other payments include cash outflows directly associated with the Electronics Separation and the Aramids Divestiture. These costs include advisor and banking fees, payments related to establishing a new capital structure (including fees associated with interest rate swaps), capital expenditures required to facilitate physical asset separation, restructuring payments associated with senior leadership, and Future Reimbursable Indirect Costs, among other expenditures.

Future Reimbursable Indirect Costs are excluded from Adjusted Earnings and Operating EBITDA. To provide comparable data analysis, the Company has also adjusted payments associated with Future Reimbursable Indirect Costs within Separation-related transaction costs and other payments. This adjustment is intended to provide insight into the Company’s underlying business performance. For the six months ended June 30, 2026, the Company adjusted $8 million associated with Future Reimbursable Indirect Costs within Separation-related transaction costs and other payments.

Additionally, $2 and $5 million were reflected in Separation-related transaction costs and other payments for the three and six month periods ended June 30, 2026, respectively, for capital expenditures incurred to complete the physical separation of shared locations.

Finally, $6 million of restructuring and short-term incentive program payments to former senior leadership were reflected in Separation-related transaction costs and other payments for the six month period ended June 30, 2026. These payments were reflected in other cash payments as they related to the establishment of the post-spin leadership structure.

DuPont de Nemours, Inc.

Consolidated Statements of Operations

Three Months Ended
June 30,

Six Months Ended

June 30,

In millions, except per share amounts (Unaudited)

2026

2025

2026

2025

Net sales

$ 1,819

$ 1,749

$ 3,500

$ 3,361

Cost of sales

1,180

1,143

2,259

2,212

Research and development expenses

103

Selling, general and administrative expenses

269

262

524

496

Amortization of intangibles

136

149

Restructuring and asset related (benefits) charges – net

(3)

—

Acquisition, integration and separation costs

105

Equity in earnings (loss) of nonconsolidated affiliates

(6)

Sundry income (expense) – net

(9)

Interest expense

167

Income from continuing operations before income taxes

$ 266

$ 78

$ 447

$ 175

Provision for income taxes on continuing operations

106

Income from continuing operations, net of tax

$ 191

$ 24

$ 341

$ 104

(Loss) income from discontinued operations, net of tax

(44)

(30)

(615)

Net income (loss)

$ 147

$ 70

$ 311

$ (511)

Net income attributable to noncontrolling interests

Net income (loss) available for DuPont common stockholders

$ 143

$ 59

$ 304

$ (530)

Per common share data:

Earnings per common share from continuing operations – basic

$ 1.38

$ 0.17

$ 2.45

$ 0.73

(Loss) earnings per common share from discontinued operations – basic

(0.32)

0.25

(0.22)

(4.53)

Earnings (loss) per common share – basic

$ 1.05

$ 0.42

$ 2.23

$ (3.80)

Earnings per common share from continuing operations – diluted

$ 1.37

$ 0.17

$ 2.43

$ 0.73

(Loss) earnings per common share from discontinued operations – diluted

(0.32)

0.25

(0.22)

(4.52)

Earnings (loss) per common share – diluted

$ 1.05

$ 0.42

$ 2.22

$ (3.79)

Weighted-average common shares outstanding – basic

135.9

139.6

136.3

139.6

Weighted-average common shares outstanding – diluted

136.8

139.9

137.2

139.9

DuPont de Nemours, Inc.

Condensed Consolidated Balance Sheets

In millions, except share amounts (Unaudited)

June 30, 2026

December 31, 2025

Assets

Current Assets

Cash and cash equivalents

$ 1,740

$ 715

Restricted cash and cash equivalents

Accounts and notes receivable – net

1,751

1,669

Inventories

1,210

1,172

Prepaid and other current assets

113

121

Assets of discontinued operations

—

1,856

Total current assets

$ 4,856

$ 5,575

Property, plant and equipment – net of accumulated depreciation (June 30,
2026 – $3,694; December 31, 2025 – $3,565)

3,379

3,464

Other Assets

Goodwill

7,840

7,915

Other intangible assets

2,789

2,936

Investments and noncurrent receivables

981

432

Deferred income tax assets

221

282

Deferred charges and other assets

995

971

Total other assets

$ 12,826

$ 12,536

Total Assets

$ 21,061

$ 21,575

Liabilities and Equity

Current Liabilities

Short-term borrowings

$ —

$ 60

Accounts payable

978

995

Income taxes payable

Accrued and other current liabilities

970

882

Liabilities of discontinued operations

—

314

Total current liabilities

$ 2,001

$ 2,305

Long-Term Debt

3,125

3,134

Other Noncurrent Liabilities

Deferred income tax liabilities

295

405

Pension and other post-employment benefits – noncurrent

400

432

Other noncurrent obligations

1,359

1,196

Total other noncurrent liabilities

$ 2,054

$ 2,033

Total Liabilities

$ 7,180

$ 7,472

Commitments and contingent liabilities

Stockholders’ Equity

Common stock (authorized 555,555,556 shares of $0.01 par value each;
issued 2026: 135,038,855 shares; 2025: 136,398,482 shares)

Additional paid-in capital

$ 38,710

38,721

Accumulated deficit

(24,326)

(24,278)

Accumulated other comprehensive loss

(616)

(525)

Total DuPont stockholders’ equity

$ 13,769

$ 13,919

Noncontrolling interests

112

184

Total equity

$ 13,881

$ 14,103

Total Liabilities and Equity

$ 21,061

$ 21,575

DuPont de Nemours, Inc.

Consolidated Statement of Cash Flows

Six Months Ended June 30,

In millions (Unaudited)

2026

2025

Operating Activities

Net income (loss)

$ 311

$ (511)

Loss from discontinued operations

(30)

(615)

Net income from continuing operations

$ 341

$ 104

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

309

326

Credit for deferred income tax and other tax related items

(Earnings) losses of nonconsolidated affiliates (in excess of) less than dividends received

(6)

Net periodic pension benefit costs

Periodic benefit plan contributions

(28)

(23)

Restructuring and asset related charges – net

Interest rate swap gain

—

(51)

Stock based compensation

Donatelle contingent earn-out true-up

(14)

(12)

Other net (income) loss

(2)

Changes in assets and liabilities, net of effects of acquired and divested companies:

Accounts and notes receivable

(88)

(213)

Inventories

(29)

(51)

Accounts payable

(19)

Other assets and liabilities, net

(64)

(5)

Cash provided by operating activities – continuing operations

$ 632

$ 151

Investing Activities

Capital expenditures

(178)

(172)

Proceeds and adjustments to proceeds from sales of businesses, net of cash divested

1,158

—

Other investing activities, net

Cash provided by (used for) investing activities – continuing operations

$ 989

$ (165)

Financing Activities

Changes in short-term borrowings

(60)

—

Purchases of common stock and forward contracts

(275)

—

Proceeds from issuance of Company stock

107

Employee taxes paid for share-based payment arrangements

(22)

Distributions to noncontrolling interests

(11)

(5)

Dividends paid to stockholders

(163)

(343)

Other financing activities, net

(1)

(7)

Cash used for financing activities – continuing operations

$ (425)

$ (373)

Cash Flows from Discontinued Operations

Cash (used for) provided by operations – discontinued operations

(158)

540

Cash used for investing activities – discontinued operations

(6)

(193)

Cash used for financing activities – discontinued operations

(3)

(17)

Cash (used for) provided by discontinued operations

$ (167)

$ 330

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(7)

Increase (decrease) in cash, cash equivalents and restricted cash

$ 1,022

$ (13)

Cash, cash equivalents and restricted cash from continuing operations, beginning of period

757

1,834

Cash, cash equivalents and restricted cash from discontinued operations, beginning of period

Cash, cash equivalents and restricted cash at beginning of period

$ 760

$ 1,892

Cash, cash equivalents and restricted cash from continuing operations, end of period

1,782

1,817

Cash, cash equivalents and restricted cash from discontinued operations, end of period

—

Cash, cash equivalents and restricted cash at end of period

$ 1,782

$ 1,879

DuPont de Nemours, Inc.

Select Segment Information and Non-GAAP Measures

Net Sales by Segment

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30, 2026

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Healthcare & Water Technologies

$ 856

$ 817

$ 1,662

$ 1,580

Diversified Industrials

963

932

1,838

1,781

Total

$ 1,819

$ 1,749

$ 3,500

$ 3,361

Net Sales Variance by Segment

Three Months Ended June 30, 2026

Organic Sales

Currency

Portfolio / Other

Total

Percent change from prior year (Unaudited)

Healthcare & Water Technologies

4 %

1 %

— %

5 %

Diversified Industrials

—

Total

4 %

— %

4 %

Net Sales Variance by Segment

Six Months Ended June 30, 2026

Organic Sales

Currency

Portfolio / Other

Total

Percent change from prior year (Unaudited)

Healthcare & Water Technologies

3 %

2 %

— %

5 %

Diversified Industrials

—

Total

3 %

1 %

— %

4 %

Operating EBITDA by Segment

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30, 2026

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Healthcare & Water Technologies

$ 258

$ 248

$ 502

$ 471

Diversified Industrials

213

199

413

384

Corporate 1

(23)

(24)

(53)

(72)

Total

$ 448

$ 423

$ 862

$ 783

Corporate includes expenses of the Corporate function not allocated to specific business in the Company.

Equity in Earnings (Loss) of Nonconsolidated Affiliates by Segment

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30, 2026

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Healthcare & Water Technologies

$ 1

$ —

$ 2

$ —

Diversified Industrials

—

(1)

—

Corporate 1

(6)

Total equity earnings (loss) included in operating EBITDA (GAAP)

$ 9

$ 8

$ (6)

Corporate includes the equity interest acquired in the Delrin® Divestiture transaction.

DuPont de Nemours, Inc.

Selected Financial Information and Non-GAAP Measures

Reconciliation of “Income from continuing operations, net of tax” to
“Operating EBITDA”

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30, 2026

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Income from continuing operations, net of tax (GAAP)

$ 191

$ 24

$ 341

$ 104

+ Provision for income taxes on continuing operations

106

Income from continuing operations before income taxes

$ 266

$ 78

$ 447

$ 175

+ Depreciation and amortization

154

166

309

326

– Interest income 1, 2

+ Interest expense 3

166

– Non-operating pension/OPEB benefit (costs) credits 1

(1)

—

(1)

– Foreign exchange gains (losses), net 1

(14)

(17)

+ Future Reimbursable Indirect Costs

—

+ Corporate DDOB Remediation Costs

– Significant items charge

(8)

(72)

(54)

(81)

Operating EBITDA (non-GAAP)

$ 448

$ 423

$ 862

$ 783

Included in “Sundry income (expense) – net”.

The three and six months ended June 30, 2026 and 2025 excludes accrued interest income earned on employee retention credits. Refer to details of significant items on page 14.

The six months ended June 30, 2025 excludes interest rate swap basis amortization. Refer to details of significant items on page 14.

Reconciliation of “Cash provided by operating activities – continuing
operations” to Adjusted Free Cash Flow 1 , Transaction-Adjusted Free
Cash Flow1 and calculation of “Adjusted Free Cash Flow Conversion”
and “Transaction-Adjusted Free Cash Flow Conversion”

Three Months Ended

Six Months Ended

In millions (Unaudited)

Jun 30, 2026

Jun 30, 2025

Jun 30, 2026

Jun 30, 2025

Cash provided by operating activities (GAAP) 2 – continuing operations

$ 400

$ 74

$ 632

$ 151

Capital expenditures

(76)

(50)

(178)

(172)

Adjusted free cash flow (non-GAAP)

$ 324

$ 24

$ 454

$ (21)

Separation-related transaction cost and other payments3

136

Transaction-adjusted free cash flow (non-GAAP)

$ 326

$ 107

$ 473

$ 115

Adjusted earnings (non-GAAP) 4

$ 257

$ 177

$ 483

$ 331

Adjusted free cash flow conversion (non-GAAP)

126 %

14 %

94 %

(6) %

Transaction-adjusted free cash flow conversion (non-GAAP)

127 %

60 %

98 %

35 %

Adjusted Free Cash Flow and Transaction-Adjusted Free Cash Flow are calculated on a continuing operations basis for all periods presented. Refer to the definitions of Non-GAAP metrics on pages 7-8 for additional information.

Refer to the Consolidated Statement of Cash Flows included in the schedules above for major GAAP cash flow categories as well as further detail relating to the changes in “Cash provided by operating activities – continuing operations” for the six month periods noted.

Other payments for the three months ended June 30, 2026 includes $2 million related of separation-related capital expenditures. Other payments for the six months ended June 30, 2026 includes $5 million of separation-related capital expenditures, $6 million related to restructuring and short-term incentive program payments associated with former senior leadership, and $8 million for Future Reimbursable Indirect Costs (as defined in our Non-GAAP definitions).

Refer to page 14 for the Non-GAAP reconciliations of Net income from continuing operations available for DuPont common stockholders to Adjusted Earnings (Non-GAAP).

DuPont de Nemours, Inc.

Selected Financial Information and Non-GAAP Measures

Significant Items Impacting Results for the Three Months Ended June 30, 2026

In millions, except per share amounts (Unaudited)

Pretax 1

Net
Income 2

EPS 3

Income Statement Classification

Reported earnings (GAAP)

$ 266

$ 187

$ 1.37

Less: Significant items

Acquisition, integration & separation costs

(7)

(5)

(0.04)

Acquisition, integration and separation costs

Restructuring and asset related benefits – net

—

Restructuring and asset related charges – net

Other benefits (credits), net 4

(4)

(3)

(0.02)

Sundry income (expense) – net; Selling, general and administrative expenses

Income tax items 5

—

(3)

(0.02)

Provision for income taxes on continuing operations

Total significant items

$ (8)

$ (11)

$ (0.08)

Less: Amortization of intangibles

(68)

(53)

(0.39)

Amortization of intangibles

Less: Non-op pension / OPEB benefit costs

(1)

(0.01)

Sundry income (expense) – net

Less: Corporate DDOB remediation costs

(6)

(5)

(0.03)

Selling, general and administrative expenses

Adjusted earnings (non-GAAP)

$ 349

$ 257

$ 1.88

Significant Items Impacting Results for the Three Months Ended June 30, 2025

In millions, except per share amounts (Unaudited)

Pretax 1

Net
Income 2

EPS 3

Income Statement Classification

Reported earnings (GAAP)

$ 78

$ 24

$ 0.17

Less: Significant items

Acquisition, integration and separation costs

(55)

(46)

(0.32)

Acquisition, integration and separation costs

Restructuring and asset related benefits – net

—

Restructuring and asset related charges – net

Interest rate swap mark-to-market loss 6

(27)

(21)

(0.15)

Sundry income (expense) – net

Other benefits (credits), net 7

0.06

Sundry income (expense) – net

Income tax items 8

—

(18)

(0.13)

Provision for income taxes on continuing operations

Total significant items

$ (72)

$ (76)

$ (0.54)

Less: Amortization of intangibles

(74)

(58)

(0.42)

Amortization of intangibles

Less: Non-op pension / OPEB benefit credits

—

Sundry income (expense) – net

Less: Future reimbursable indirect costs

(25)

(19)

(0.14)

Selling, general and administrative expenses

Less: Corporate DDOB remediation costs

(2)

—

Selling, general and administrative expenses

Adjusted earnings (non-GAAP)

$ 251

$ 177

$ 1.27

Income (loss) from continuing operations before income taxes.

Net income (loss) from continuing operations available for DuPont common stockholders. The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

Earnings (loss) per common share from continuing operations – diluted.

Includes benefits related to an adjustment of the Donatelle contingent earn-out liability ($8 million pre-tax benefit) and legal costs within the Healthcare & Water Technologies segment associated with a pending intellectual property matter ($7 million pre-tax cost), and legal costs associated with personal injury cases associated with Corian® Quartz, a product within the Diversified Industrials segment ($8 million pre-tax cost).

Reflects the net impact of a valuation allowance release in Europe and a deferred tax asset reversal in the U.S.

The three months ended June 30, 2025 includes non-cash mark-to-market loss related to the 2022 Swaps and 2024 Swaps and the interest settlement loss on the 2022 Swaps.

Reflects the income tax impact of certain internal restructurings related to the Electronics Separation.

DuPont de Nemours, Inc.

Selected Financial Information and Non-GAAP Measures

Significant Items Impacting Results for the Six Months Ended June 30, 2026

In millions, except per share amounts (Unaudited)

Pretax 1

Net
Income 2

EPS 3

Income Statement Classification

Reported earnings (GAAP)

$ 447

$ 334

$ 2.43

Less: Significant items

Acquisition, integration & separation costs

(7)

(5)

(0.04)

Acquisition, integration and separation costs

Restructuring and asset related charges – net

(43)

(36)

(0.26)

Restructuring and asset related charges – net

Other benefits (credits), net 4

(4)

(3)

(0.02)

Sundry income (expense) – net; Selling, general and administrative expenses

Income tax items 5

—

0.11

Provision for income taxes on continuing operations

Total significant items

$ (54)

$ (29)

$ (0.21)

Less: Amortization of intangibles

(136)

(105)

(0.77)

Amortization of intangibles

Less: Non-op pension / OPEB benefit costs

(1)

(0.01)

Sundry income (expense) – net

Less: Future reimbursable indirect costs

(8)

(6)

(0.04)

Selling, general and administrative expenses

Less: Corporate DDOB remediation costs

(10)

(8)

(0.06)

Selling, general and administrative expenses

Adjusted earnings (non-GAAP)

$ 656

$ 483

$ 3.52

Significant Items Impacting Results for the Six Months Ended June 30, 2025

In millions, except per share amounts (Unaudited)

Pretax 1

Net
Income 2

EPS 3

Income Statement Classification

Reported earnings (GAAP)

$ 175

$ 102

$ 0.73

Less: Significant items

Acquisition, integration and separation costs

(105)

(89)

(0.63)

Acquisition, integration and separation costs

Restructuring and asset related charges – net

(39)

(32)

(0.23)

Restructuring and asset related charges – net

Interest rate swap mark-to-market loss 6

0.28

Sundry income (expense) – net; Interest expense

Other benefits (credits), net 7

0.08

Sundry income (expense) – net

Income tax items 8

—

(2)

(0.02)

Provision for income taxes on continuing operations

Total significant items

$ (81)

$ (73)

$ (0.52)

Less: Amortization of intangibles

(149)

(117)

(0.84)

Amortization of intangibles

Less: Non-op pension / OPEB benefit credits

0.01

Sundry income (expense) – net

Less: Future reimbursable indirect costs

(50)

(39)

(0.28)

Selling, general and administrative expenses

Less: Corporate DDOB remediation costs

(5)

(2)

(0.01)

Selling, general and administrative expenses

Adjusted earnings (non-GAAP)

$ 458

$ 331

$ 2.37

Income (loss) from continuing operations before income taxes.

Earnings (loss) per common share from continuing operations – diluted.

Reflects the accrued interest earned on employee retention credits ($3 million pre-tax benefit), benefits related to an adjustment of the Donatelle contingent earn-out liability ($14 million pre-tax benefit), legal costs within the Healthcare & Water Technologies segment associated with a pending intellectual property matter ($10 million pre-tax cost), and legal costs associated with personal injury cases associated with Corian® Quartz, a product within the Diversified Industrials segment ($11 million pre-tax cost).

Reflects the 2026 income tax benefit primarily the result of a discrete tax benefit relating to a change in tax classification of a non-U.S. legal entity ($20 million pre-tax benefit).

The six months ended June 30, 2025 includes non-cash mark-to-market gain related to the 2022 Swaps and 2024 Swaps and the interest settlement loss on the 2022 Swaps. The six months ended June 30, 2025 also includes basis amortization on the 2022 Swaps ($1 million pre-tax, reflected in “Interest expense” within the Consolidated Statements of Operations).

Reflects the accrued interest earned on employee retention credits ($6 million pre-tax benefit), benefits related to an adjustment of the Donatelle contingent earn-out liability ($12 million pre-tax benefit), legal costs within the Healthcare & Water Technologies segment associated with a pending intellectual property matter ($5 million pre-tax cost).

Reflects the income tax impact of certain internal restructurings related to the Electronics Separation.

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SOURCE DuPont

Technology

Govee Strengthens Its Commitment to User Security with Updated Security Response Center

Published

33 seconds ago

November 12, 2026

BELLEVUE, Wash., Nov. 12, 2026 /PRNewswire/ — Govee, a global leader in smart lighting, today announced the update of its official Security Response Center, reinforcing its ongoing commitment to protecting user privacy and product security through greater transparency and closer collaboration with the global security research community.

At Govee, user privacy and product security are top priorities. The updated Security Response Center provides a centralized platform where users and researchers can access security advisories, stay informed about security updates, and learn more about Govee’s coordinated vulnerability disclosure process.

As part of this initiative, Govee is strengthening its engagement with security researchers worldwide through its Vulnerability Reward Program. Researchers are encouraged to responsibly report potential vulnerabilities, with eligible submissions qualifying for bounty rewards following review and verification, directly through Govee’s Security Response Center Portal.

The platform also features a Contributors section, publicly recognizing researchers who have helped improve Govee products and services, with their consent.

Through continued investment in security, transparent communication, and collaboration with independent researchers, Govee remains committed to delivering safer, more reliable products and experiences for its users.

For more information, visit the Govee Security Response Center: security.govee.com

About Govee

Govee has been revolutionizing the smart living experience with innovative, ambient lighting solutions since 2017. From living spaces, gaming setups, and outdoor areas, Govee’s smart home tech is not just visually stunning, but also functional – transforming small everyday moments into more personalized and brighter engaging lighting experiences. Embracing the idea that users should “Life is Colorful” and push the boundaries of what lighting can do by blending design, and utility. To learn more about Govee, please visit govee.com.

View original content:https://www.prnewswire.com/news-releases/govee-strengthens-its-commitment-to-user-security-with-updated-security-response-center-302937742.html

SOURCE Govee

Technology

Rafay and Fortanix Help Neoclouds, Sovereign AI Clouds and Enterprises Deliver Confidential AI as a Service

Published

35 seconds ago

November 12, 2026

Joint solution lets operators run customers’ AI workloads in attested, hardware-isolated environments where sensitive data and models stay encrypted even while in use.

SUNNYVALE, Calif., Nov. 12, 2026 /PRNewswire/ — Rafay Systems and Fortanix® Inc. today announced a joint solution that lets neoclouds, sovereign AI clouds and enterprises deliver confidential AI as a Service. The Rafay Platform now orchestrates workloads that run on CNCF® Confidential Containers (CoCo) with Fortanix Confidential AI, extending the companies’ existing integration for confidential virtual machines.

With the joint solution, operators can offer AI workloads that run inside hardware-based Trusted Execution Environments (TEEs), where encryption keys are released only after Fortanix verifies the environment and AI workload through cryptographic attestation. End users launch those workloads from the Rafay Developer Hub without filing a support ticket.

In regulated industries such as financial services, healthcare and the public sector, many of the mission critical AI use cases involve sensitive data such as customer records, patient information and financial transactions, and model providers need to protect the proprietary models that process it. These workloads often run on GPU infrastructure operated by a 3rd party: a neocloud, a sovereign cloud or a shared internal AI factory. Encryption protects data at rest and in transit, but without confidential computing, data and model weights must be decrypted for processing, leaving them exposed in CPU and GPU memory to anyone with privileged access to the infrastructure. Research from Fortanix and Atomik Research found that while 93% of AI leaders understand traditional encryption does not protect data while AI is processing it, only half can fully verify that protection is in place during inference.

“Confidential computing enables model owners to deploy proprietary AI models on third-party infrastructure with reduced risk of exposing valuable intellectual property, while creating new revenue opportunities for cloud operators to offer premium, security-focused AI inference services.” said Mohan Atreya, chief product officer at Rafay. “Fortanix verifies the environment through cryptographic attestation and controls the secure key release. Rafay turns that into a governed, multi-tenant service, so a neocloud or sovereign cloud can offer confidential AI as a SKU, and its customers can run sensitive workloads on infrastructure they don’t operate. With Confidential Containers, that model now reaches the Kubernetes pod, where AI teams already ship their workloads.”

How the Joint Solution Works

CoCo, a CNCF Incubating project, applies confidential computing to the Kubernetes pod. Built on Kata Containers, CoCo runs each pod in its own lightweight confidential virtual machine, with memory encrypted by the CPU and, on supported hardware, GPUs included in the trust boundary. Developers deploy workloads with standard Kubernetes workflows.

Fortanix Confidential Computing Manager (CCM) performs composite attestation across the confidential computing environment, verifying the integrity of CPU and GPU trusted execution environments, firmware, and software components before authorizing the release of encryption keys. Fortanix Data Security Manager (DSM), backed by a FIPS 140-3 Level 3 HSM certification, releases encryption keys only to environments CCM has attested. If attestation fails, encryption keys remain protected, preventing the workload from accessing sensitive data or executing successfully.

The Rafay Platform turns that infrastructure into a service operators can deliver to their own customers:

Cluster automation: Rafay blueprints install the Fortanix CoCo add-ons and keep them in sync on every confidential cluster.Multi-tenancy: Operators onboard GPU infrastructure once, then give each customer an isolated tenant.Self-service SKUs: Administrators package a confidential workload as a SKU in Rafay SKU Studio, and end users launch it on demand from the Rafay Developer Hub.Governance: Policy, access controls and quotas apply across tenants and clusters.

“Every AI Factory faces a trust dilemma. Model owners want their weights hidden from operators and customers; enterprises want their data hidden from model owners and operators; and operators must prove they can see neither, even via another tenant or compromised software,” said Anuj Jaiswal, Chief Product Officer at Fortanix. “Fortanix and Rafay resolve that dilemma in one click. Rafay orchestrates the deployment of proprietary models and AI applications across on-premises, sovereign and cloud infrastructures. Fortanix Confidential AI releases keys only to attested workloads, so model owners, enterprises, and operators, each keep control of what they own, every time it runs.”

Use Cases

Neoclouds and GPU cloud providers can offer confidential AI as a premium service, backed by attestation evidence that tenant workloads run in TEEs and that keys go only to verified workloads. Sovereign AI clouds can keep keys in an HSM under the operator’s control, on-premises or as SaaS, and attest what is running before any data is decrypted. Regulated enterprises in financial services, healthcare and the public sector can run AI on customer, patient or financial data while keeping it protected from the infrastructure operator during processing. AI model providers can deliver proprietary models into customer environments with weights that stay encrypted until the environment is attested.

A recorded demo shows the end-to-end workflow, with a customer of a neocloud launching a confidential application via the Rafay end user portal with attestation and key release by Fortanix.

Availability

Rafay support for CoCo-based deployments with Fortanix Confidential AI is available now, alongside the existing confidential VM integration. Fortanix announced Fortanix Confidential AI for CoCo on Oct. 19, 2026.

About Rafay Systems

Rafay Systems is a leading software provider powering the operators building the AI cloud, including neoclouds, telecommunications providers, enterprises, and sovereign AI operators. The Rafay Platform lets these organizations operationalize GPU and compute infrastructure with self-service automation, governance, and multi-tenancy, spanning bare metal provisioning, infrastructure lifecycle management, virtual machines, Kubernetes, GPU PaaS, AI development environments, and Token Factory for publishing AI models as token-metered inference services. By simplifying orchestration and operations across this stack, Rafay helps operators increase GPU utilization and turn raw infrastructure into monetizable, production-ready AI services, all while maintaining security, consistency, and control. Rafay is a validated partner in the NVIDIA AI Cloud Ready initiative. For more information, visit rafay.co.

About Fortanix

Fortanix is the global leader in data and AI security and a pioneer of Confidential Computing, delivering a unified platform to protect sensitive data, AI models, and applications across on-premises and multi-cloud environments—at rest, in transit, and in use. Built on hardware-enforced security, Fortanix enables workloads to run in tamper-proof, isolated enclaves, protecting against data leakage, model extraction, and unauthorized access, even from privileged insiders.

As enterprises scale modern AI factories, Fortanix provides a Confidential AI foundation built on attestation-based trust, secure key release, and zero-trust enforcement. This ensures AI systems remain verifiable, auditable, and trustworthy—while enabling crypto agility and long-term resilience through post-quantum cryptography (PQC).

Trusted by leading enterprises and sovereign entities in highly regulated industries and powered by an industry-standard approach to Confidential Computing supported by leading technology providers, including Intel, Microsoft, and NVIDIA, Fortanix enables organizations to safely use sensitive data and drive AI adoption with confidence.

Media Contacts

Rafay Systems: Angela Shugarts, angela@rafay.co

Fortanix: BOCA Marketing for Fortanix, Fortanix@bocamarketing.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/rafay-and-fortanix-help-neoclouds-sovereign-ai-clouds-and-enterprises-deliver-confidential-ai-as-a-service-302937100.html

SOURCE Rafay Systems

Technology

Allot Announces Third Quarter 2026 Financial Results

Published

37 seconds ago

November 12, 2026

Revenue growth of 16% and SECaaS ARR increases 41% year-over-year

HOD HASHARON, Israel, Nov. 12, 2026 /PRNewswire/ — Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider of innovative Security-as-a-Service (SECaaS) and network intelligence solutions for communications service providers and enterprises, today announced its unaudited financial results for the third quarter of 2026.

Financial Highlights for the Third Quarter of 2026

Strong revenue growth to $30.6 million, up 16% year-over-year;Security-as-a-Service (SECaaS) revenues of $9.9 million, increasing 37% year-over-year;September 2026 SECaaS ARR* of $38.8 million, up 41% year-over-year;GAAP operating income of $2.8 million, compared with $2.2 million in the third quarter of 2025;Non-GAAP operating income of $3.9 million compared with $3.7 million in the third quarter of 2025;Operating cash flow of $7.4 million, up 85% compared with $4.0 million in the third quarter of 2025.

Management Comment

Eyal Harari, CEO of Allot, commented, ” This quarter demonstrated continued excellent execution and showed the strength of our business model. Allot is now a sustainably profitable company, and we continue to expand our profitability as we grow our business. We delivered a strong third quarter, combining double-digit revenue growth with improved profitability and robust cash generation. Growth was driven by both SECaaS and SMART solutions, that are both now showing double-digit year-over-year revenue increases. The SMART product growth follows our high level of backlog which we are converting into revenue, following our recent significant wins.”

Mr. Harari added, “SECaaS ARR continues to grow strongly at 41% year-over-year, further building our recurring revenue base and our visibility into the quarters ahead. We continue to innovate to find new ways to protect consumers, as demonstrated with our recent launch of Allot IOT security. As threat actors use AI to target individuals and businesses at-scale, it is becoming more critical for service providers to provide a layer of protection for their end-customers, supporting demand for cyber-security solutions.”

Mr. Harari concluded, “Given the momentum, we are raising the midpoint of our guidance for 2026 and narrowing the range to between $116 million and $118 million. We also expect SECaaS revenue growth for 2026, to be above 40%.”

Third Quarter 2026 Financial Results Summary

Total revenues for the third quarter of 2026 were $30.6 million, a 16% increase year-over-year compared with $26.4 million in the third quarter of 2025.

Gross profit on a GAAP basis for the third quarter of 2026 was $21.9 million (gross margin of 71.6%), a 16% increase compared with $18.9 million (gross margin of 71.4%) in the third quarter of 2025.

Gross profit on a non-GAAP basis for the third quarter of 2026 was $22.0 million (gross margin of 71.9%), a 15% increase compared with $19.1 million (gross margin of 72.2%) in the third quarter of 2025.

Operating income on a GAAP basis for the third quarter of 2026 was $2.8 million (operating margin of 9.2%), a 31% increase compared with $2.2 million (operating margin of 8.1%) in the third quarter of 2025.

Operating income on a non-GAAP basis for the third quarter of 2026 was $3.9 million (operating margin of 12.9%), a 6% increase compared with $3.7 million (operating margin of 14.0%) in the third quarter of 2025.

Net income on a GAAP basis for the third quarter of 2026 was $3.4 million, or $0.07 per diluted share, compared with $2.8 million, or $0.07 per diluted share, in the third quarter of 2025.

Net income on a non-GAAP basis for the third quarter of 2026 was $4.7 million, or $0.09 per diluted share, compared with $4.6 million, or $0.10 per diluted share, in the third quarter of 2025.

Operating cash flow generated in the quarter was $7.4 million, compared with $4.0 million in the third quarter of 2025.

Cash and cash equivalents, bank deposits, restricted deposits and investments as of September 30, 2026, totaled $112 million, compared with $88 million as of December 31, 2025.

Conference Call & Webcast:

The Allot management team will host a conference call to discuss its third quarter 2026 earnings results today, November 12, 2026, at 8:30 am ET, 1:30 pm UK, 3:30 pm Israel time. To access the conference call, please dial one of the following numbers:

US: 1-888-668-9141, UK: 0-800-917-5108, Israel: +972-3-918-0644

A live webcast and, following the end of the call, an archive of the conference call, will be accessible on the Allot website at: https://investors.allot.com/

About Allot

Allot Ltd. (NASDAQ: ALLT, TASE: ALLT) is a leading provider of innovative converged cybersecurity solutions and network intelligence offerings for service providers and enterprises worldwide. Allot enhances value to its customers’ customers through its solutions, which are deployed globally for network-native cybersecurity services, network and application analytics, traffic control and shaping, and more. Allot’s multi-service platforms are deployed by over 500 mobile, fixed and cloud service providers and over 1,000 enterprises. Allot’s industry-leading network-native security-as-a-service solution is already used by many millions of subscribers globally.

For more information, visit www.allot.com

Performance Metrics

* SECaaS ARR – measures the current annual recurring SECaaS revenues, calculated as estimated SECaaS revenues for the month of September 2026, multiplied by 12.

GAAP to Non-GAAP Reconciliation:

The Company presents non–GAAP financial measures that adjust GAAP results to exclude items that management considers not reflective of the Company’s ongoing operational performance. Non-GAAP gross profit is defined as GAAP gross profit excluding share-based compensation expenses, amortization of intangible assets and acquisition–related expenses. Non-GAAP operating income is defined as GAAP operating income excluding primarily share-based compensation expenses, amortization of intangible assets and acquisition–related expenses. Non-GAAP net income is defined as GAAP net income excluding primarily share-based compensation expenses, amortization of intangible assets, loss from extinguishment, acquisition–related and other non–recurring expenses, financial income or expenses related to exchange rate differences and changes in tax-related items.

These non-GAAP measures should be considered in addition to, and not as a substitute for, comparable GAAP measures. The non-GAAP results and a full reconciliation between GAAP and non-GAAP results are presented below. The Company provides these non-GAAP financial measures because it believes they present a better measure of the Company’s core business and management uses the non-GAAP measures internally to evaluate the Company’s ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company’s operating performance.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including our revenue guidance, revenue, growth, demand for our solutions, our ability to execute our strategy, our ability to convert backlog into revenue, our product innovation, capital allocation, share repurchase programs, maximizing shareholder value, and future opportunities, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our accounts receivable, including our ability to collect outstanding accounts and assess their collectability on a quarterly basis; our ability to meet expectations with respect to our financial guidance and outlook; our ability to compete successfully with other companies offering competing technologies; the loss of one or more significant customers; consolidation of, and strategic alliances by, our competitors; government regulation; the timing of completion of key project milestones which impact the timing of our revenue recognition; lower demand for key value-added services; our ability to keep pace with advances in technology and to add new features and value-added services; managing lengthy sales cycles; operational risks associated with large projects; our dependence on third party channel partners for a material portion of our revenues; and other factors discussed under the heading “Risk Factors” in the Company’s annual report on Form 20-F for the fiscal year 2025, filed with the Securities and Exchange Commission as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Additionally, the forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
EK Global Investor Relations
Ehud Helft
+1 212 378 8040
allot@ekgir.com

Public Relations Contact:
Seth Greenberg, Allot Ltd.
+972 54 922 2294
sgreenberg@allot.com

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

September 30,

December 31,

2026

2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$ 29,650

$ 17,107

Restricted deposit

4,243

3,573

Short-term bank deposits

24,500

15,100

Available-for-sale marketable securities

52,355

48,663

Trade receivables, net (net of allowance for credit losses of $9,095 and
$9,611 on September 30, 2026, and December 31, 2025, respectively)

28,974

17,451

Other receivables and prepaid expenses

6,845

9,906

Inventories

17,011

13,180

Total current assets

163,578

124,980

NON-CURRENT ASSETS:

Severance pay fund

$ 324

$ 295

Restricted deposit

908

3,327

Operating lease right-of-use assets

6,143

5,518

Other assets

835

732

Property and equipment, net

4,978

6,014

Goodwill

31,833

Total non-current assets

45,021

47,719

Total assets

$ 208,599

$ 172,699

LIABILITIES AND

SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Trade payables

$ 2,776

$ 938

Employees and payroll accruals

11,433

9,254

Deferred revenues

42,980

24,700

Short-term operating lease liabilities

1,622

348

Other payables and accrued expenses

14,806

11,919

Total current liabilities

73,617

47,159

LONG-TERM LIABILITIES:

Deferred revenues

$ 9,004

$ 5,912

Long-term operating lease liabilities

4,463

5,392

Accrued severance pay

672

886

Total long-term liabilities

14,139

12,190

SHAREHOLDERS’ EQUITY

120,843

113,350

Total liabilities and shareholders’ equity

$ 208,599

$ 172,699

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

Three Months Ended

Nine Months Ended

September 30,

2026

2025

2026

2025

Revenues

$ 30,588

$ 26,405

$ 84,750

$ 73,606

Cost of revenues

8,690

7,539

24,342

21,362

Gross profit

21,898

18,866

60,408

52,244

Operating expenses:

Research and development
costs, net

6,351

5,489

19,624

18,741

Sales and marketing

8,580

8,148

24,445

22,747

General and administrative

4,153

3,079

10,898

9,722

Total operating expenses

19,084

16,716

54,967

51,210

Operating income

2,814

2,150

5,441

1,034

Loss from extinguishment

–

(1,410)

Other income

–

100

Financial income, net

1,091

869

3,851

1,902

Income before tax

3,905

3,019

9,292

1,626

Income tax expenses

486

195

1,358

823

Net income

$ 3,419

$ 2,824

$ 7,934

$ 803

Income per share

Basic

$ 0.07

$ 0.16

$ 0.02

Diluted

$ 0.07

$ 0.16

$ 0.02

Weighted average shares
outstanding

Basic

49,276,707

41,487,057

49,070,116

42,580,555

Diluted

49,806,002

43,253,509

49,845,813

44,909,810

ALLOT LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

Three Months Ended

Nine Months Ended

September 30,

2026

2025

2026

2025

Cash flows from operating activities:

Net income

$ 3,419

$ 2,824

$ 7,934

$ 803

Adjustments to reconcile net income to net cash
used in operating activities:

Depreciation and amortization

588

835

1,933

3,254

Share-based compensation

1,123

1,559

3,860

3,989

Capital loss

113

–

113

255

Loss from extinguishment

–

1,410

Other income

–

(100)

Amortization of premium, discount and accrued
interest on marketable securities

162

(237)

(283)

(1,099)

Financial income from lease modification

–

(1,158)

–

Loss (gain) on foreign exchange on cash and
cash equivalents

(44)

(454)

Changes in operating assets and liabilities:

Increase (decrease) in accrued severance pay, net

(243)

117

Decrease (increase) in other assets, other
receivables and prepaid expenses

1,443

(3,817)

510

(2,198)

(Increase) decrease in operating leases liability

(834)

190

(253)

(13)

Increase in operating lease right-of-use asset

404

292

1,131

871

Increase in trade receivables

(3,804)

(679)

(11,523)

(4,332)

Decrease (increase) in inventories

486

(5,703)

(3,831)

(5,597)

Increase in trade payables

1,358

6,274

1,838

6,252

Increase (decrease) in employees and
payroll accruals

2,651

844

2,179

1,417

(Decrease) increase in deferred revenues

(1,963)

420

21,372

2,956

Increase in other payables and accrued expenses

2,125

1,211

2,737

2,126

Net cash provided by operating activities

7,375

3,997

26,415

9,657

Cash flows from investing activities:

(Increase) decrease in restricted deposit

(848)

–

1,749

353

Investment in short-term bank deposits

(13,000)

(16,800)

(44,400)

(32,550)

Withdrawal of short-term bank deposits

19,600

11,050

35,000

31,000

Purchase of property and equipment

(360)

(100)

(1,010)

(789)

Investment in marketable securities

(30,844)

(44,213)

(65,398)

(99,647)

Proceeds from redemption or sale of
marketable securities

35,660

38,694

61,910

88,377

Proceeds from sale of patent

–

100

Net cash provided by (used in)
investing activities

10,208

(11,369)

(12,149)

(13,156)

Cash flows from financing activities:

Issuance of share capital

–

4,617

–

42,308

Purchase of treasury stocks

(1,624)

Exercise of employee stock options

–

238

Redemption of convertible debt

–

(31,410)

Net cash (used in) provided by
financing activities

(1,624)

4,617

(1,624)

11,136

Effect of exchange rate changes on cash and
cash equivalents

(68)

(99)

454

Increase (decrease) in cash and
cash equivalents

15,891

(2,711)

12,543

8,090

Cash and cash equivalents at the beginning
of the period

13,759

26,943

17,107

16,142

Cash and cash equivalents at the end
of the period

$ 29,650

$ 24,232

$ 29,650

$ 24,232

Non-cash activities:

Right-of-use assets obtained in exchange for
operating lease liabilities

–

(12)

593

(83)

Redemption of convertible debt

–

(10,000)

ALLOT LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

2026

2025

2026

2025

(Unaudited)

GAAP cost of revenues

$ 8,690

$ 7,539

$ 24,342

$ 21,362

Share-based compensation

(80)

(211)

(320)

(465)

Amortization of intangible assets

–

(305)

Non-GAAP cost of revenues

$ 8,610

$ 7,328

$ 24,022

$ 20,592

GAAP gross profit

$ 21,898

$ 18,866

$ 60,408

$ 52,244

Share-based compensation

211

320

465

Amortization of intangible assets

–

305

Non-GAAP gross profit

$ 21,978

$ 19,077

$ 60,728

$ 53,014

GAAP operating expenses

$ 19,084

$ 16,716

$ 54,967

$ 51,210

Share-based compensation – Research and development costs, net

(203)

(400)

(731)

(1,022)

Share-based compensation – Sales and marketing

(427)

(466)

(1,590)

(1,237)

Share-based compensation – General and administrative

(413)

(482)

(1,219)

(1,265)

Non-GAAP operating expenses

$ 18,041

$ 15,368

$ 51,427

$ 47,686

GAAP operating Income

$ 2,814

$ 2,150

$ 5,441

$ 1,034

Share-based compensation

1,123

1,559

3,860

3,989

Amortization of intangible assets

$ –

$ 305

Non-GAAP operating Income

$ 3,937

$ 3,709

$ 9,301

$ 5,328

GAAP Net income

$ 3,419

$ 2,824

$ 7,934

$ 803

Share-based compensation

1,123

1,559

3,860

3,989

Amortization of intangible assets

–

305

Loss from extinguishment

–

1,410

Exchange rate differences*

(189)

116

(86)

159

Changes in tax related items

329

627

150

Non-GAAP Net income

$ 4,682

$ 4,579

$ 12,335

$ 6,816

Non-GAAP income per share

Basic

$ 0.10

$ 0.11

$ 0.25

$ 0.16

Diluted

$ 0.09

$ 0.10

$ 0.24

$ 0.15

Weighted average shares outstanding

Basic

49,276,707

41,487,057

49,070,116

42,580,555

Diluted

51,204,432

44,592,351

51,102,519

46,409,437

* Financial income or expenses related to exchange rate differences in connection
with revaluation of assets and liabilities in non-dollar denominated currencies.

Other financial metrics (Unaudited)

U.S. dollars in millions, except top 10 customers as a % of revenues and number of shares

Q3-26

FY 2025

FY 2024

Revenues geographic breakdown

Americas

5.8

19 %

19.1

19 %

14.2