All articles tagged with #profitability
British luxury automaker Aston Martin will cut about 20% of its global workforce to save roughly 40 million pounds ($54 million) annually, blaming tariffs and geopolitical uncertainty for weaker profitability, with no timeline for the layoffs and following last year’s organizational review.
Wendy's plans to close 300–360 U.S. stores in 2026 (about 5–6% of its outlets) to boost profitability at remaining locations; interim CEO Ken Cook says closures will improve sales and profits, a move that sent shares higher. The company reported U.S. sales fell more than 11% in Q4 2025 as rising costs and higher prices squeezed consumers, especially those in lower-income brackets, prompting Wendy's to lean more on value offerings.
Nintendo says it has not decided to raise the Switch 2 price despite RAM/memory price spikes, citing long-term supplier deals and inventory stockpiles; if costs persist longer, pricing could be reconsidered, but the company is prioritizing expanding the Switch 2’s install base to drive software sales rather than jumping to a $500 price tag.
Nintendo president Shuntaro Furukawa said memory-price rises have not yet hit Switch 2 profitability in the latest quarter, but warned the trend could pressure margins if it extends into the next fiscal year. The company is securing memory supplies long-term, has not decided on a hardware price change, and plans to grow the installed base while holding higher-than-usual inventory to guard against potential supply disruptions.
Toyota names CFO Kenta Kon as its new CEO starting April 1, with Koji Sato moving to vice chairman and a newly created Chief Industry Officer role. Kon’s finance-focused leadership comes as the automaker pushes services and partnerships to boost margins amid tariff headwinds and competition, while Sato focuses on manufacturing efficiency and cross-industry collaboration. Toyota recently sold 3% more vehicles globally but posted a 1.9% year-over-year drop in operating profit; it projects about $23.3 billion in operating profit for the fiscal year, a roughly 21% decline from the prior year.
Peloton reported a softer holiday quarter, missing revenue ($657M vs $674M expected) and earnings (loss of 9c per share vs 6c expected), with hardware and subscription sales also brief of forecasts. The company cautioned that demand remains sluggish, guiding Q3 revenue to $605–$625M (below consensus $638M). Yet adjusted EBITDA beat expectations at $81M and the full-year target was raised to $450–$500M from $425–$475M, aided by 39% year-over-year EBITDA growth and debt reduction. CFO Liz Coddington is leaving, and CEO Peter Stern framed the results as a balance of innovation and profitability, signaling ongoing product upgrades and pricing adjustments despite weaker demand for the AI-driven lineup.
Nike is laying off 775 US employees—mostly distribution-center workers in Tennessee and Mississippi—as it accelerates automation to streamline operations and boost profitability, continuing a multi-year cost-cutting effort under CEO Elliott Hill.
Southwest Airlines is ending its open-seating system and moving to assigned seats with an eight-group boarding process, offering standard, preferred and extra-legroom seats plus paid priority boarding; families of nine or fewer will be kept in the same boarding group, while passengers who don’t fit in a single seat must buy an extra seat in advance and refunds are not guaranteed; the rollout, supported by investor pressure, includes phased gate-area changes over about two months and marks a major shift in the carrier’s traditional perks.
SoundHound AI has fallen 38% over the last year as it funds ambitious growth. Despite a record quarterly revenue of $42 million, it posted a net loss of $109.2 million. Management expects to reduce losses and reach profitability in 2026, aided by ongoing acquisitions and ~$20 million in annual run-rate synergies, plus a new agentic AI platform. The company has contracts across finance, healthcare, energy, and hospitality, a debt-free balance sheet, and a strong cash position, but investors should weigh continued losses against the growth trajectory as it scales.
The article discusses the potential economic risks of AI, highlighting that despite rapid revenue growth, many AI companies are unprofitable and heavily reliant on massive investments and debt. It warns that a market correction could have widespread financial repercussions, affecting global economies and public finances, especially if the current AI boom turns out to be a bubble.
Shares of Plug Power surged 7.3% after an analyst upgrade citing potential profitability improvements, driven by cost savings and higher product prices, though the stock remains highly volatile and influenced by broader market trends.
Reinsurers have increased profits by reducing coverage and raising premiums amid rising natural disasters and climate change, with industry forecasts indicating continued strong profitability until at least 2027 despite lower reinsurance prices and increased investment from private capital and hedge funds.
Broadway is facing financial challenges due to rising production costs and stagnant ticket prices, leading to struggles for producers and concerns about the industry's future, despite high attendance and cultural significance to New York City.
The biotech sector is reaching a turning point as development-stage companies are maturing, with drugs gaining approvals and generating revenue, leading to increased profitability and attracting more generalist investor interest, supported by optimistic financial forecasts through 2030.
Salesforce's Q3 earnings exceeded expectations with higher profits and improved operating margins, leading to a nearly 5% after-hours stock increase. Despite a slight revenue miss, strong guidance and increased profitability highlight its shift from rapid growth to value creation. The company is also investing in AI, booking $540 million in annual recurring revenue from AI products, aiming to regain double-digit sales growth.