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DATE

Tuesday, July 29, 2025 at 12:00 a.m. ET

CALL PARTICIPANTS

Chief Executive Officer — Andrew Wilson

Chief Financial Officer — Stuart Canfield

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TAKEAWAYS

Net Revenue: $1.92 billion for Q1 FY2026, up 15% year over year, driven by live services and new game launches

Operating Margin: 24% GAAP and 31% non-GAAP in Q1 fiscal year 2026, attributed to efficiency and the live services business model

Gross Profit: $1.35 billion gross profit for Q1 FY2026, up 18% from the prior year, supported by a continued shift toward higher-margin live services.

Cash Flow from Operations: Cash flow from operations was $750 million for Q1 FY2026, ascribed to operational performance and disciplined working capital management

Fiscal Year Revenue Guidance: Management raised full-year net revenue guidance to $7.8 billion based on current franchise strength.

Live Services Performance: "our live services continue to perform strongly across all our major franchises," Wilson said, highlighting Ultimate Team in FIFA and esports as growth drivers.

Battlefield Franchise: "Battlefield's performance since launch has been exceptional." Wilson said, emphasizing player engagement surpassing internal expectations.

Sims Franchise: The Sims was noted as a key contributor with a growing, highly engaged community supported by frequent content updates.

Margin Drivers: Canfield said margin expansion came from "favorable shift in revenue mix towards live services, as well as improved operational efficiencies across our global operations."

Skate Opportunity: Skate is described as "a new creator-driven platform" with ambitions to become "a meaningful contributor" to engagement and recurring revenue.

FC Strategy: "Our strategy focuses on continuing to deliver unparalleled authenticity and depth in our gameplay," Wilson stated, leveraging partnerships and live services to engage the football community.

Leadership Structure: Organizational changes are positioned as "an evolution rather than a shift in strategy." aiming to enhance agility and focus on major growth areas.

SUMMARY

Electronic Arts Inc. (NASDAQ:EA) reported a 15% year-over-year increase in GAAP net revenue and lifted full-year guidance, attributing gains to high-margin live services and successful new launches. Management stated cash flow from operations reached $750 million due to operational performance and working capital discipline. The company highlighted exceptional engagement in the Battlefield franchise, expanded its Sims and sports communities, and signaled Skate as an upcoming platform for incremental recurring revenue. Strategic emphasis included capital allocation through dividends and repurchases, and leveraging partnerships to boost engagement in its new football franchise. EA reaffirmed its approach to agility and long-term growth while introducing targeted leadership changes.

Wilson called out Ultimate Team and esports as expanding the reach of FIFA's live services franchise to new audiences.

Canfield indicated quarterly operational margin improvement primarily resulted from controlling discretionary expenditures and adopting scalable practices.

Management stated that creating new organizational roles is designed to capture upcoming growth opportunities and reinforce EA's leadership in the industry.

INDUSTRY GLOSSARY

Live Services: Ongoing, revenue-generating digital content and features that extend a game's lifecycle and drive engagement beyond the initial sale.

Ultimate Team: A proprietary mode in FIFA titles where users build teams using virtual cards, driving high recurring monetization and engagement.

Full Conference Call Transcript

Andrew Wilson: The quarter's results were driven by our diverse portfolio and robust execution. Our teams have delivered an outstanding Battlefield experience, with player engagement exceeding our expectations. In EA Sports, live services continue to drive growth, with FIFA and Madden exhibiting strong performance, and NHL showing positive momentum. Our focus on live services, seamless updates, and new content additions have deepened player engagement and extended the life cycle of our franchises. The Sims franchise remains a key contributor to our success, with an active and growing community. This passionate and engaged player base continues to explore and create in new ways, and our commitment to regular content updates keeps the franchise vibrant and fresh.

Moving on to our financials, I'll now turn the call over to Stuart to provide details on our performance and forward outlook.

Stuart Canfield: Thank you, Andrew. As Andrew highlighted, we had a strong start to the fiscal year, and I'm pleased to share our financial results for the first quarter of fiscal year 2026. For the quarter, net revenue was $1.92 billion, up 15% year over year, driven by strong live services performance and the successful launch of innovative titles. Our GAAP operating margin was 24%, and our non-GAAP operating margin was 31%, reflecting our continued focus on delivering efficient operations and the strength of our business model. Our gross profit was $1.35 billion, up 18% from the prior year, driven by the mix shift towards high-margin live services.

Our cash flow from operations in the quarter was $750 million, a significant increase due to strong operational performance and working capital management. Looking ahead, we remain focused on achieving our long-term growth objectives and delivering value to our shareholders. We are raising our full-year net revenue guidance to $7.8 billion, reflecting the strong performance and outlook for our key franchises. Additionally, we remain disciplined in our capital allocation strategy, with a commitment to returning value to our shareholders through dividends and share repurchases. Now, let's move to the Q&A portion of the call.

Operator: Thank you. [Operator Instructions] Our first question comes from the line of Alexia Quadrani from JPMorgan. Please go ahead.

Alexia Quadrani: Thank you. Just a couple of questions from me. First, on the live services, we've seen continuous growth there. Can you provide more color on what's driving that momentum, particularly for FIFA and your other sports franchises? And then secondly, any updates on Battlefield's performance since its launch?

Andrew Wilson: Thank you, Alexia. To address your first question, our live services continue to perform strongly across all our major franchises, driven by our focus on engaging and growing our player community. For FIFA specifically, our Ultimate Team mode continues to be a standout, offering players a dynamic and evolving experience with regular updates and content drops. This keeps engagement high across our global player network. Additionally, our FIFA esports initiatives have been successful, extending the reach of the franchise and bringing in new fans. As for our other sports franchises, Madden and NHL have both seen strong engagement, thanks in part to our updated content and compelling live service offerings that resonate with players.

Moving to your second question, Battlefield's performance since launch has been exceptional. We've seen strong player uptake and engagement, and the game is performing ahead of our expectations. The player community is enthusiastic, and our teams are committed to delivering regular updates and new content to sustain that engagement. Thank you for your questions, Alexia.

Operator: Our next question comes from the line of Matthew Thornton from Truist Securities.

Matthew Thornton: Thanks, good afternoon. From a margin perspective, I wonder if you could talk about the drivers of the expansion both year over year and quarter over quarter? And secondly, when you think about Skate, how should we think about the potential opportunity there relative to your other franchises, particularly in terms of engagement and financial contribution?

Stuart Canfield: Thanks for the question, Matthew. Regarding your first question, our margin expansion reflects both our operational efficiency and the strength of our live services model, which tend to carry higher margins compared to full game sales. Year over year, the expansion is largely driven by the favorable shift in revenue mix towards live services, as well as improved operational efficiencies across our global operations. Quarter over quarter, we saw improvements primarily from the ongoing managing of discretionary spending and continued focus on scalable, efficient operational practices. Your second question on Skate, we're incredibly excited about its potential. Skate represents not just a new game, but a new creator-driven platform that aligns with the current trend towards user-generated content and community-building.

We see the potential for significant engagement given the passionate Skate community and the broad appeal of skateboarding culture. Financially, while it's early, we're aiming for Skate to become a meaningful contributor to EA's overall portfolio, with live services providing opportunities for recurring revenue generation. Overall, our strategy is focused on long-term engagement, and the creative opportunities in Skate align well with that vision. Thanks for the questions, Matthew.

Operator: Our next question comes from the line of Mike Hickey from The Benchmark Company.

Mike Hickey: Hi. Thanks for taking my questions. Just two from me. First, on the upcoming launch of FC, given the soccer/football landscape's competitive dynamics, what can you share about your strategy to solidify and grow your position there? And second, with the changes in leadership at EA and the creation of new roles, how do you see this impacting your strategy, if at all?

Andrew Wilson: Great questions, Mike. On your first question related to FC, we are very optimistic about the future. Football is the world's most popular sport, and our FC title is advantaged by the foundation of FIFA's global fan base. Our strategy focuses on continuing to deliver unparalleled authenticity and depth in our gameplay, underpinned by our unique access to player data, partnerships with clubs, leagues, and the governing bodies of football. Furthermore, our live services will continue to connect and engage our community year-round, capitalizing on key football events and trends. Regarding the second question, as we refine our leadership structure at EA, the changes reflect an evolution rather than a shift in strategy.

The creation of new roles is designed to enhance our agility and focus on major growth opportunities, ensuring we remain at the forefront of the industry. With a deep bench of proven leaders, we're well-positioned to continue our creative and commercial success in the competitive interactive entertainment landscape. Thanks, Mike, for your questions.

Operator: There are no more questions in the queue at this time. I would like to turn the call back over to Andrew Wilson for any closing remarks.

Andrew Wilson: Thank you, operator, and thank you to everyone for joining us today. We appreciate your continued support and interest in Electronic Arts Inc. We are excited about the opportunities ahead and look forward to updating you on our progress in the coming quarters. Have a great afternoon, everyone.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy.

Christina Chapman, a 50-year-old Arizona woman, has just been sentenced to 102 months in prison for helping North Korean hackers steal US identities in order to get "remote" IT jobs with more than 300 American companies, including Nike. The scheme funneled millions of dollars to the North Korean state.

Why did Chapman do it? In a letter sent this week to the judge, Chapman said that she was "looking for a job that was Monday through Friday that would allow me to be present for my mom" who was battling cancer. (Her mother died in 2023.) But "the area where we lived didn't provide for a lot of job opportunities that fit what I needed. I also thought that the job was allowing me to help others."

She offered her "deepest and sincerest apologies to any person who was harmed by my actions," thanked the FBI for busting her, and said that when she gets out of prison, she hopes to "pursue the books that I have been working on writing and starting my own underwear company."

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Key Points

• Intel beat Wall Street revenue expectations but posted an unexpected loss due to charges related to streamlining.

• The company, under new CEO Lip-Bu Tan, is taking decisive action to get costs in line.

• These are the early days of what figures to be a long turnaround, but the initial results provide some reason for optimism.

• 10 stocks we like better than Intel ›

Here's our initial take on Intel's (NASDAQ: INTC) fiscal 2025 second-quarter financial report.

Key Metrics

Intel Works to Get Its House in Order

Intel posted better-than-expected revenue in the second quarter but noted an unexpected loss due to impairment charges related to "excess tools with no identified reuse." This is the first full quarter under new CEO Lip-Bu Tan, who joined in March, and the new chief executive outlined his plan for the company, including significant cost cuts.

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Intel management said it has completed the majority of a plan to cut its workforce by 15% and is taking action to optimize its manufacturing footprint. The company said it no longer intends to move forward with planned projects in Germany and Poland. In addition, Intel said it would "further slow" the pace of construction at a plant in Ohio to ensure the spending is aligned with market demand.

Revenue was boosted by strong demand from the personal-computer business, driven by efforts by PC makers to boost inventories ahead of potential tariffs. The company's client computing group, which includes PCs, saw revenue grow by $300 million on a sequential-quarter basis to $7.6 billion.

Intel's Foundry unit, which has been touted as a future driver for growth, did $4.4 billion in revenue in the quarter compared to $4.7 billion in the first quarter of 2025 and $4.3 billion a year ago.

Data center revenue came in at $3.9 billion.

Immediate Market Reaction

Investors seem to be taking the earnings miss in stride. Shares of Intel were up about 2% in after-market trading immediately following the announcement on Thursday but ahead of the company's conference call with investors.

What to Watch

Intel and Tan are at the early stages of a very long journey, with the CEO focused for now on getting costs under control before focusing attention on reestablishing Intel's legacy as an innovation powerhouse. That will take time, and investors can only gather so much information from a single quarter's results.

Intel is guiding for revenue of $12.6 billion to $13.6 billion in the current quarter, which would be down slightly from a year ago at the midpoint. It expects to be breakeven on a per-share basis, which would be substantially better than last year's third-quarter loss.

The jury's still out on Intel. But for those who have bought into the turnaround story, there is ample reason for optimism that Tan is aggressively taking important first steps.

Helpful Resources

• Full earnings report
• Investor relations page
• Additional coverage

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.

Welcome to Edition 8.02 of the Rocket Report! It's worth taking a moment to recognize an important anniversary in the history of human spaceflight next week. Fifty years ago, on July 15, 1975, NASA launched a three-man crew on an Apollo spacecraft from Florida and two Russian cosmonauts took off from Kazakhstan, on course to link up in low-Earth orbit two days later. This was the first joint US-Russian human spaceflight mission, laying the foundation for a strained but enduring partnership on the International Space Station. Operations on the ISS are due to wind down in 2030, and the two nations have no serious prospects to continue any partnership in space after decommissioning the station.

As always, we welcome reader submissions. If you don't want to miss an issue, please subscribe using the box below (the form will not appear on AMP-enabled versions of the site). Each report will include information on small-, medium-, and heavy-lift rockets, as well as a quick look ahead at the next three launches on the calendar.

Sizing up Europe's launch challengers. The European Space Agency has selected five launch startups to become eligible for up to 169 million euros ($198 million) in funding to develop alternatives to Arianespace, the continent's incumbent launch service provider, Ars reports. The five small launch companies ESA selected are Isar Aerospace, MaiaSpace, Rocket Factory Augsburg, PLD Space, and Orbex. Only one of these companies, Isar Aerospace, has attempted to launch a rocket into orbit. Isar's Spectrum rocket failed moments after liftoff from Norway on a test flight in March. None of these companies is guaranteed an ESA contract or funding. Over the next several months, ESA and the five launch companies will negotiate with European governments for funding leading up to ESA's ministerial council meeting in November, when ESA member states will set the agency's budget for at least the next two years. Only then will ESA be ready to sign binding agreements.

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Key Points

• Southern Company is a sprawling utility business with strong positioning for a nuclear energy resurgence.

• The dividend offers a solid starting yield and comes with growth potential.

• However, the stock may not be as attractive following its recent rally.

• 10 stocks we like better than Southern Company ›

Providing key energy resources, such as electricity and natural gas, to consumers and businesses isn't easy. However, it's a big industry, and that's where utility companies shine.

The Motley Fool recently researched the largest utility companies, and Southern Company (NYSE: SO) ranked third, with a market capitalization of just over $100 billion. The utility giant seemingly does it all; it operates electric and gas utilities, provides fiber optic and wireless communications services, and sells wholesale energy. The company has over 9 million customers across the southeastern United States.

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But is Southern Company worth your hard-earned cash today?

Here's how the stock might appeal to investors and whether it's a buy currently.

Image source: Getty Images.

Positioned for a resurgence in nuclear

The surge in data center construction for artificial intelligence and cloud computing could strain the U.S. electric grid. Goldman Sachs estimates that data center power consumption will rise by 165% from 2023 levels by the end of this decade.

That has revived interest in nuclear power. Some of the leading technology companies have already begun inking deals with nuclear companies to supply power, and the Trump administration is calling for increased investment in nuclear to quadruple the country's capacity by 2050.

Southern Company is positioned well as an incumbent leader in nuclear power. Its subsidiary, Southern Nuclear, operates eight nuclear units across three power plants, including its recently completed Vogtle Units 3 (2023) and 4 (2024), the first newly built commercial units in the United States in approximately three decades.

Vogtle Units 3 and 4 took approximately 15 years to build and cost over $36 billion, so having this done ahead of what could be a golden age for nuclear power demand is a key advantage. It also frees up Southern Company from what has been a costly endeavor, to say the least.

A steady and growing dividend

Utility companies are typically stable investments and fantastic dividend stocks. People almost always need energy, and the regulated nature of the industry limits competition in exchange for continued investment and price stability from the utilities.

Southern Company operates multiple subsidiaries, spanning power generation, transmission, electric and gas utilities, nuclear, and telecommunications. Cumulatively, Southern Company anticipates 8% annualized load growth (power demand) through 2029, translating to 5% to 7% annualized long-term earnings-per-share growth.

That is more than enough to fund continued dividend increases. Southern Company already has an established dividend track record of 24 consecutive annual increases and hasn't cut its dividend in 78 years. The stock's dividend yield is 3.2% at its current share price.

Is Southern Company a buy?

That growth and dividend could push the stock's annualized investment returns to 8% to 10%. That won't excite everyone, but utility stocks are famously resilient, and Southern Company's beta of just 0.38 should allow shareholders to sleep well at night when the broader market tumbles.

Southern Company's stock has risen about 16% over the past year, likely due, at least in part, to the increased excitement surrounding nuclear energy producers.

I probably wouldn't call Southern Company stock a bargain. Not at a price-to-earnings ratio of 21, using 2025 estimated earnings, when the business is expecting 5% to 7% annualized earnings growth. Management indicated there could be some upside to its growth forecast, so perhaps Southern Company comes in at the high end or even exceeds that. However, that's speculation at this point.

It's probably fine to nibble on Southern Company at its current price. But, ideally, the stock would pull back to around 17 to 18 times earnings, a more attractive valuation for a slow-and-steady stalwart like Southern Company.

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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.

Key Points

• Exchange-traded funds typically hold baskets of stocks, but trade like individual equities.

• The Invesco KBW Premium Yield Equity REIT ETF focuses on real estate investment trusts.

• REITs are required to distribute most of their profits via dividends.

• 10 stocks we like better than Invesco Exchange-Traded Fund Trust II - Invesco Kbw Premium Yield Equity REIT ETF ›

Exchange-traded funds (ETFs) have become quite popular in their three-plus decades of existence. There are now more publicly listed ETFs than there are individual stocks on the New York Stock Exchange. Similar to mutual funds, ETFs usually hold baskets of stocks or other assets, but they trade similarly to stocks. They are highly liquid, and owning them can be a more tax-efficient way to invest than holding mutual funds.

Each ETF is designed around a theme -- and that could be anything from tracking an index to focusing on one industry or type of stock. Many have portfolios that are intended to produce reliable dividends for income investors. But which ETF has the highest yield in 2025?

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This ETF holds stakes in many real estate investment trusts

At this point, investors can find ETFs to suit pretty much any investment strategy. Some track indexes, others are actively managed, and many deploy complex options strategies or leverage up on crypto bets. However, because many of those strategies result in funds that are not appropriate as long-term holdings, I'm excluding ETFs that use complex options strategies or make big crypto bets from my search.

Image source: Getty Images.

Within the field of choices that remain, the highest-yielding ETF at the moment is the Invesco KBW Premium Yield Equity REIT ETF (NASDAQ: KBWY). It invests solely in real estate investment trusts (REITs) -- companies with special structures that enjoy tax advantages as long as they abide by the required policies. For instance, a REIT must distribute 90% of its taxable income to its shareholders each year through dividends. REITs also must invest at least 75% of their assets in real estate or cash, and receive at least 75% of their total income from real estate revenue, like rent, mortgage interest, real estate loans, or the sale of real estate assets.

Because of that payout requirement, REITs are viewed as strong dividend investments. However, their earnings and yields can fluctuate as the real estate market progresses through economic and interest rate cycles. KBWY's dividends have had their ups and downs, but it has had a strong average yield since launching in 2010. Currently, its yield is over 9.6%.

Data by YCharts.

As of July 7, the ETF's top 10 holdings by weight were:

Source: Invesco.

Brandywine Realty Trust focuses on urban and municipal transit-oriented developments. Innovative Industry Properties leases properties to companies in the cannabis sector. Community Healthcare Trust leases properties to hospitals and other healthcare providers, primarily in markets outside of major cities.

Is KBWY a buy?

Few ETFs that don't make use of super-aggressive investment strategies can match KBWY's yield. But in the world of dividends, investors should always take a skeptical approach to an unusually high yield -- sometimes, they're too good to last. And sometimes, they signal that an investment has other problems.

For example, since its inception, KBWY's net asset value (NAV) is only up about 4%. Now, part of that weak result can be attributed to the pandemic, which changed the ways people live and work, likely forever. As a result, many real estate stocks and REITs got hit hard and haven't recovered. That's reflected in KBWY's five-year performance. A lower interest rate environment, which many expect to start to materialize later this year, could help KBWY by lowering REITs' borrowing costs and improving conditions for the businesses that are leasing space.

Lower benchmark interest rates also reduce the amount that investors can earn from low-risk assets, which makes dividend investments more appealing.

However, one thing that worries me about KBWY is its high exposure to the office space and healthcare segments, both of which have been shaky since the pandemic, and which are still very much trying to find their footing.

Although KBWY's yields have been attractive since its inception, the dividend is likely to remain volatile, and it likely won't be this high forever. KBWY will keep churning out passive income for its shareholders, but I think there are more stable options out there that might be more prudent for income-focused investors.

Should you invest $1,000 in Invesco Exchange-Traded Fund Trust II - Invesco Kbw Premium Yield Equity REIT ETF right now?

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,010,880!*

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*Stock Advisor returns as of July 7, 2025

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool recommends Easterly Government Properties and Innovative Industrial Properties. The Motley Fool has a disclosure policy.

It's been 23 years since the first Battlefield game, and the video game industry is nearly unrecognizable to anyone who was immersed in it then. Many people who loved the games of that era have since become frustrated with where AAA (big budget) games have ended up.

Today, publisher EA is in full production on the next Battlefield title—but sources close to the project say it has faced culture clashes, ballooning budgets, and major disruptions that have left many team members fearful that parts of the game will not be finished to players' satisfaction in time for launch during EA's fiscal year.

They also say the company has made major structural and cultural changes to how Battlefield games are created to ensure it can release titles of unprecedented scope and scale. This is all to compete with incumbents like the Call of Duty games and Fortnite, even though no prior Battlefield has achieved anywhere close to that level of popular and commercial success.

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• New York-based Nanotronics builds compact, modular semiconductor plants called "Cubefabs."
• Its goal is to improve chip-making to be more time and cost-efficient, enabling factories to run with fewer workers.
• "The vision is that any region — whether in the Global South or the United States — should be able to produce what it needs locally," CEO Matthew Putman told BI.

In his 1986 book "Engines of Creation," engineer K. Eric Drexler — often called the godfather of nanotechnology — made a prediction.

"The coming era of molecular machines will mean the end of many limits: the limit of scarcity, the limit of slow development, the limit of ignorance enforced by the lack of tools," he wrote.

Reading those words a few years later, when he was 16, Matthew Putman started thinking.

"Our bodies work as these little micro-machines where you have ribosomes and enzymes and things that are working and replicating and making things all the time, but our factories work the way that they've worked for the last hundred years," Putman told Business Insider he thought at the time.

He wondered how a world would look "where you don't have large assembly lines, you don't have smokestacks, you instead just make things so perfectly," he said. Putman became fascinated by the possibilities of machines that are "atomically precise."

It wasn't until the recent AI boom, however, that the idea really took off with fabrication plants.

Putman, now 50, is the CEO of Brooklyn-based Nanotronics, which he cofounded with his father in 2010. The company started out building microscopes and tools to detect defects in semiconductors, among other materials. Now, it builds small, modular semiconductor manufacturing plants called Cubefabs.

While the biggest fabs in the country are often millions of square feet in size, Cubefabs measure anywhere from 25,000 square feet for the smallest units up to about 60,000 square feet for a full-sized fab. They're adaptable, and the company says they can be assembled in under a year in most places on Earth.

They're also smart — thanks to the power of AI — so they can self-monitor their production and improve in real time, the company said. And they're relatively cheap, costing a minimum of $30 to $40 million, compared to large fabs that can cost billions to build.

With President Donald Trump back in the White House and pledging to reinvigorate US manufacturing, a new opening has emerged for Nanotronics — even as sweeping tariffs challenge companies that produce or depend on semiconductors.

Putman says that in the long term, the tariffs will bolster domestic innovation.

Tariffs "should be a wake-up call — a push to create something better than what either the US or China has done before," he told BI in a video interview from the Nanotronics headquarters in Brooklyn Navy Yard. "If we get this right, American innovation won't just protect our future — it could help redefine global progress in a way that benefits humanity."

Putman says compact, modular factories are exactly that.

"Your factory should be incredibly small," Putman said, gesturing to the room behind him. "Eventually, it could be the size of this room."

The 'Ikea of factories'

Semiconductor manufacturing has surged since the launch of ChatGPT. Global annual revenue for the industry is expected to reach more than $1 trillion by 2030, according to McKinsey & Company.

In the US, despite legislation subsidizing domestic semiconductor production, fabs are more expensive to construct and maintain than those built in places like mainland China and Taiwan, McKinsey says. The US also suffers from a shortage of qualified labor, which can delay construction timelines, according to the firm.

To attempt to solve some of these issues, Nanotronics teamed up with architecture firm Rogers Partners and engineering firm Arup to design compact factories. Each one runs with 37 people, but Putman says the ideal setup is four factories — about 180 workers total — which allows them to scale up without halting production.

"It's like the Ikea of factories," Putman said. The company has raised $182 million to date from firms including Peter Thiel's Founders Fund.

Cubefabs can be used to produce chips that span a range of uses across electronics applications, electric vehicles, and photodetectors for cube satellites, Putman said.

"The more precise we make things, the more abundance we bring to the world," he said. "The business of making things grow bigger and bigger starts small — molecular small."

Building on the foundational research of scientist Philippe Bove — now chief scientist at Nanotronics — the company also uses gallium oxide — a type of semiconductor that can handle more power than traditional materials like silicon — to produce advanced chips.

The company plans to have its first installation set up in New York within the next 18 months.

"These fabs do not require billions in capital expenditure or large populations of highly trained workers," Putman told BI in a follow-up email. "The vision is that any region — whether in the Global South or the United States — should be able to produce what it needs locally."

Construction and engineering services provider Argan (NYSE: AGX) was a big hit on the stock exchange Thursday, a direct result of the far better-than-expected quarterly results it posted the day before. Investors plowed into the company to give it an 8% lift on the day, providing a notable contrast to the S&P 500's (SNPINDEX: ^GSPC) 0.5% decrease.

Double- and triple-digit pops

For its inaugural quarter of fiscal 2026, Argan's revenue came in at just under $193.7 million, a meaty 23% year-over-year increase. That was accompanied by a significant (36%) increase in project backlog, to a record level of almost $1.9 billion. Even better, net income under generally accepted accounting principles (GAAP) standards nearly tripled, landing at almost $22.6 million ($1.60) versus the less than $7.9 million of fiscal first quarter 2025.

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Both headline numbers absolutely obliterated the consensus analyst estimates. On average, pundits tracking Argan stock were modeling slightly below $176 million on the top line, and a per-share GAAP net income figure of $0.90.

In the earnings release, Argan attributed its powerful gains largely to one key customer base. It quoted CEO David Watson as saying that the improvements came largely from "the energy industry's urgent response to the growing strain on our power grids related to the building of data centers, the onshoring of complex manufacturing, and an increasing amount of electric vehicle (EV) charging activity."

No longer a sleeper stock?

Outperformance like this rarely escapes the notice of investors, so it was hardly surprising that they bid up Argan's shares after the earnings release was published. The trends driving the fundamentals well higher should remain in force for quite some time -- particularly the dynamic behind the data center demand, which is directly related to the rapid rise of artificial intelligence (AI) -- so this once under-the-radar stock should continue to be a solid play.

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There are a lot of rumors flying around about Social Security's finances -- and not all of them are true.

The idea that the program is going broke, for example, is a big misconception. Social Security can't go broke, due to the fact that it's funded by payroll taxes. So as long as there's an active labor network, Social Security gets to receive revenue.

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However, Social Security is facing a major revenue shortfall as baby boomers exit the workforce in droves in the coming years. The program is expected to have to rely on its trust funds to keep up with scheduled benefits until that money runs out.

Once Social Security's trust funds are emptied, benefit cuts may be unavoidable. That's something everyone needs to prepare for.

How bad might benefit cuts get?

It may be a bit premature to predict exactly how much benefits will shrink if Social Security were to implement cuts. There's still about a 10-year period until the program's trust funds are set to be depleted, and revenue projections could change during that time.

As of now, though, Social Security recipients may be looking at about a 21% reduction to their monthly benefits. That percentage could change for better or worse. But it's a number people should keep in mind in the course of retirement planning.

Don't let Social Security cuts wreck your retirement

A 21% reduction to your Social Security benefits, or something in that vicinity, could have a negative effect on your retirement finances. But if you make a commitment to save for retirement, you might manage to accumulate $1 million by the time your career comes to an end.

Start by funding your 401(k) or IRA from a young age -- if not at the time of your first paycheck, then at least during your 20s. Next, make a point to invest your retirement savings in the stock market, whether by adding different stocks to an IRA or choosing something like an S&P 500 index fund for your 401(k). Finally, do this consistently over many years, sit back, and wait for your money to grow.

Let's say you start contributing toward retirement at age 22 and you retire at 67, which is full retirement age for Social Security if you were born in 1960 or later. If you put $220 a month into a retirement account and your investments give you an 8% yearly return, which is a bit below the stock market's average, you'll end up with just over $1 million.

If you don't manage to start saving at such a young age, you'll have to contribute more money each month to reach that same number. The point, however, is that it can be done without parting with half of your salary or being a ridiculously high earner.

Social Security's future is still unknown, and benefit cuts are not guaranteed to happen. But it's important to have a means of supplementing your benefits nicely in case they do. Saving and investing consistently could be your ticket to retiring without financial worries.

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A California man has pleaded guilty to hacking an employee of The Walt Disney Company by tricking the person into running a malicious version of a widely used open source AI image-generation tool.

Ryan Mitchell Kramer, 25, pleaded guilty to one count of accessing a computer and obtaining information and one count of threatening to damage a protected computer, the US Attorney for the Central District of California said Monday. In a plea agreement, Kramer said he published an app on GitHub for creating AI-generated art. The program contained malicious code that gave access to computers that installed it. Kramer operated using the moniker NullBulge.

Not the ComfyUI you’re looking for

According to researchers at VPNMentor, the program Kramer used was ComfyUI_LLMVISION, which purported to be an extension for the legitimate ComfyUI image generator and had functions added to it for copying passwords, payment card data, and other sensitive information from machines that installed it. The fake extension then sent the data to a Discord server that Kramer operated. To better disguise the malicious code, it was folded into files that used the names OpenAI and Anthropic.

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• A US Navy aircraft carrier deployed to the Red Sea lost a $60 million fighter jet on Monday.
• The aircraft fell overboard after a move crew "lost control" of the jet, the Navy said.
• It's the second time that the USS Harry S. Truman strike group has lost an F/A-18 Super Hornet.

An F/A-18 Super Hornet fighter jet fell off the USS Harry S. Truman on Monday while the aircraft carrier was operating in the Red Sea, leaving a sailor hurt, the US Navy said.

The F/A-18E, which is estimated to cost roughly $60 million, was actively under tow in Truman's hangar bay — an area underneath the flight deck where aircraft receive maintenance — when the move crew "lost control" of the fighter aircraft. The plane then fell overboard alongside the tow tractor.

"Sailors towing the aircraft took immediate action to move clear of the aircraft before it fell overboard," the Navy said, adding in a statement that one sailor received minor injuries and an investigation is underway.

"The Harry S. Truman Carrier Strike Group and embarked air wing remain fully mission capable," the Navy said.

The Truman is one of two US Navy aircraft carriers that are launching aircraft for daily strikes against the Iran-backed Houthis in Yemen. The US military began an intense bombing campaign against the rebels on March 15 and has struck hundreds of targets in the weeks since.

Earlier on Monday, the Houthis said they launched missiles and drones at the Truman and the warships in its strike group, claiming that the attack forced the carrier to turn around. Business Insider could not immediately verify these details.

A defense official told BI that "very few details can be provided currently as the incident is under investigation," adding that the crew is safe and accounted for.

The loss of a Super Hornet this week marks the second time during its involvement in the Red Sea conflict that the Truman strike group has lost one of the air wing's F/A-18.

In late December, the guided-missile cruiser USS Gettysburg accidentally shot a Super Hornet down in what the military described as "an apparent case of friendly fire."