OPEC+ has agreed in principle on another bumper oil production increase for September, according to a delegate, completing the revival of a halted supply tranche as the group moves to reclaim global market share. 

Saudi Arabia and its partners plan to ratify the addition of 548,000 barrels a day for next month when they hold a video conference on Sunday, the delegate said. The increase would complete the reversal of a 2.2 million-barrel cutback made by eight members in 2023, and includes an extra allowance being phased in by the United Arab Emirates. 

The latest hike caps a dramatic shift from the Organization of the Petroleum Exporting Countries and its partners from defending prices to opening the taps. Their pivot has cushioned oil and gasoline futures against geopolitical tensions and strong seasonal demand, offering some relief for drivers and a win for President Donald Trump, but could swell a global supply surplus anticipated later in the year. 

OPEC+ had already tentatively agreed at last month’s meeting to finish the 2.2 million-barrel revival. Traders may now shift focus to the next layer of halted output, which amounts to 1.66 million barrels, and is formally scheduled to remain offline until the end of 2026.

“With the anticipated sunsetting of the 2.2 million barrel-a-day voluntary cut, we expect the producers to hit the pause button while they assess market conditions and broader macro factors,” said Helima Croft, head of commodity strategy at RBC Capital LLC.

OPEC+ sent oil prices crashing to a four-year low in early April when it announced a sudden acceleration in its plan to unwind the current tranche of cuts, while markets were still reeling from Trump’s dramatic “Liberation Day” tariff announcements. The alliance has followed with a series of bumper monthly increases, and sped up even further in July. 

Crude prices have clawed back losses as demand strengthened over the summer, with Brent futures in London trading just below $70 a barrel on Friday — down 6.7% this year. However, analysts have warned the market faces a mounting surplus later this year, as supplies increase and slowing global growth weighs on demand. Benchmark retail gasoline prices in the US even edged lower last month. 

The decision comes against the backdrop of threats by Trump to target Russian oil exports by putting secondary tariffs on buyers of its supplies unless there is a swift ceasefire in the war in Ukraine. 

A disruption to Russian flows would threaten to drive up crude prices, and run counter to Trump’s repeated call for cheaper oil, as he pushes the Federal Reserve to lower interest rates.

Russia’s Deputy Prime Minister Alexander Novak made a rare visit to Riyadh on Thursday to discuss “cooperation between the countries” with Saudi Arabian Energy Minister Prince Abdulaziz bin Salman. The two countries have jointly led OPEC+ since its creation almost a decade ago.

This story was originally featured on Fortune.com

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Dan Sheridan has worked at Brooks Running for over 25 years, and he’s been CEO for over a year now, but he says he’s still learning things every day from his own boss: Warren Buffett. The 95-year-old investing legend is famous as the “Oracle of Omaha” for his deep business acumen. You won’t see Sheridan disagree with that sentiment.

“We’re so fortunate,” Sheridan recently told Fortune‘s Leadership Next podcast, reflecting on Brooks’ status as a wholly owned subsidiary of Berkshire Hathaway. “Our ownership structure may be the greatest in the world, right? We’re owned by—who I would call the GOAT of capitalism—Warren Buffett,” Sheridan remarked. “GOAT,” of course, stands for “greatest of all time,” an acronym from the sports world increasingly spreading to other walks of life.

The remark is more than a casual compliment. For Brooks Running, being part of the Berkshire Hathaway family has meant a rare degree of stability and confidence, especially in a retail world known for its fickleness and fast pivots.

Sheridan, a 25-year Brooks employee who took the reins as CEO in April 2024, fondly recalls his encounters with Buffett over the years, including the annual Berkshire Hathaway shareholder meetings. These gatherings, often a pilgrimage for investors and business enthusiasts, also became a time for Brooks to celebrate milestones with its famously hands-on owner.

Back in 2014, as Brooks marked its 100th anniversary, Buffett made a special trip to Seattle to commemorate the occasion. Speaking before Brooks employees, Buffett distilled his investing philosophy into a single, memorable challenge. “Berkshire focuses on the long term, and your jobs are simply this: to make sure the brand is stronger at the end of the year than it was at the beginning,” Sheridan recounted. The advice resonated deeply—and has continued to shape his outlook as a leader.

‘You have to do a thousand things to keep your brand strong’

At first glance, the maxim sounds simple. But as Sheridan points out, “The truth is, that’s a huge thing for us to do. You have to do a thousand things to keep your brand strong. You have to create great product. You have to keep your morale and your culture going. You have to keep your customers happy. For me in my leadership role, that’s how I think about it: Is our brand strengthening every season, in every market?”

This focus on gradual and consistent improvement echoes the Warren Buffett playbook, eschewing quick fixes and risky gambles for what Sheridan calls “investment, really hard decisions, and capability.” For Brooks, that has meant steady investment in innovation and technology, careful brand cultivation, and an unwavering connection to its core community of runners. But Sheridan is alert from something he learned from another Berkshire GOAT, Buffett’s long-time right-hand-man, Charlie Munger.

Mind your ABCs

Sheridan has adopted a leadership mantra learned at Munger’s heel: Avoid the “ABCs” of corporate decay. “He talks a lot about organizations avoiding the ABCs: arrogance, bureaucracy, and complacency.” For Sheridan, this is more than a cautionary tale; it’s a daily discipline.

“I approach things with low arrogance because I don’t know everything. So I’m super curious in how I approach people,” Sheridan said. He stresses the importance of humility and listening, aiming to foster an organization where questions are invited and learning is constant—echoing a central tenet of Munger and Buffett’s shared philosophy of lifelong learning.

Sheridan’s intolerance for bureaucracy is equally strong. “I often say I’m allergic to bureaucracy … even in nonprofits or school committees that I’m asked to be on, my first question is, ‘Is there a lot of bureaucracy in this organization?’ I can’t function in that. I don’t know how to function in it. And so, Brooks is a place where there’s low bureaucracy,” Sheridan remarked.

This approach has helped keep Brooks nimble—despite its size and growing global reach. Complacency, the third danger, is ever-present at market leaders like Brooks. “I think every organization can rest on your history, and we’re not immune to that at Brooks,” Sheridan acknowledged.

Brooks breaks forward

Brooks Running currently holds the No. 1 position in performance-running shoes in both the U.S. and Germany, and has seen record-breaking growth in international markets—posting a 15% jump in global revenue in the first quarter of 2025, with surges as high as 221% in Asia Pacific and Latin America. But Sheridan is adamant: “In every other market, we’ve got a lot of room to grow.”

Brooks has been on a growth tear in recent years, posting $1.2 billion in revenue for 2023, with North America accounting for the lion’s share. Sheridan played a key role in navigating the company through everything from global supply-chain disruptions to the changing dynamics of consumer taste in the sporting-goods arena. Now, with a fresh mandate from both Buffett and the board, Brooks is looking to expand further overseas, especially in China and Europe.

That growth, according to Sheridan, depends on ruthlessly avoiding complacency and focusing on daily execution. Brooks’ recent expansion—from Olympic athlete partnerships to surging popularity in China and Europe—has been fueled by this mindset.

“We're owned by who I would call the G.O.A.T. of capitalism: Warren Buffett.”

On the latest episode of #LeadershipNext, @brooksrunning CEO Dan Sheridan shared the best piece of advice he’s received from investing legend and Berkshire Hathaway CEO Warren Buffett.

🎧 Listen to… pic.twitter.com/DFmBmO0MRn

— FORTUNE (@FortuneMagazine) July 29, 2025

The CEO’s leadership style, shaped by nearly three decades at Brooks, has also been marked by a willingness to “keep your head above the clouds, but your feet in the mud,” Sheridan said earlier this year. For Sheridan, balancing a high-level vision with hands-on operational focus is crucial in leading a brand through rapid industry changes, fierce competition, and expanding global complexity.

For Brooks Running, the “GOATs of capitalism” at Berkshire Hathaway aren’t just distant boardroom figures—they are active mentors whose business philosophy shapes every major decision. By embracing humility, slashing through red tape, and refusing to coast on past wins, Sheridan aims to write the next chapter in Brooks’ century-plus story—one defined by resilience, adaptability, and above all, staying hungry.

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. 

This story was originally featured on Fortune.com

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For years, Philip Goulder has been obsessed with a particularly captivating idea: In the hunt for an HIV cure, could children hold the answers?

Starting in the mid-2010s, the University of Oxford pediatrician and immunologist began working with scientists in the South African province of KwaZulu-Natal, with the aim of tracking several hundred children who had acquired HIV from their mothers, either during pregnancy, childbirth, or breastfeeding.

After putting the children on antiretroviral drugs early in their lives to control the virus, Goulder and his colleagues were keen to monitor their progress and adherence to standard antiretroviral treatment, which stops HIV from replicating. But over the following decade, something unusual happened. Five of the children stopped coming to the clinic to collect their drugs, and when the team eventually tracked them down many months later, they appeared to be in perfect health.

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Silicon Valley's AI talent war just reached a compensation milestone that makes even the most legendary scientific achievements of the past look financially modest. When Meta recently offered AI researcher Matt Deitke $250 million over four years (an average of $62.5 million per year)—with potentially $100 million in the first year alone—it shattered every historical precedent for scientific and technical compensation we can find on record. That includes salaries during the development of major scientific milestones of the 20th century.

The New York Times reported that Deitke had cofounded a startup called Vercept and previously led the development of Molmo, a multimodal AI system, at the Allen Institute for Artificial Intelligence. His expertise in systems that juggle images, sounds, and text—exactly the kind of technology Meta wants to build—made him a prime target for recruitment. But he's not alone: Meta CEO Mark Zuckerberg reportedly also offered an unnamed AI engineer $1 billion in compensation to be paid out over several years. What's going on?

These astronomical sums reflect what tech companies believe is at stake: a race to create artificial general intelligence (AGI) or superintelligence—machines capable of performing intellectual tasks at or beyond the human level. Meta, Google, OpenAI, and others are betting that whoever achieves this breakthrough first could dominate markets worth trillions. Whether this vision is realistic or merely Silicon Valley hype, it's driving compensation to unprecedented levels.

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Despite the protests of millions of Americans, the Corporation for Public Broadcasting (CPB) announced it will be winding down its operations after the White House deemed NPR and PBS a "grift" and pushed for a Senate vote that eliminated its entire budget.

The vote rescinded $1.1 billion that Congress had allocated to CPB to fund public broadcasting for fiscal years 2026 and 2027. In a press release, CPB explained that the cuts "excluded funding for CPB for the first time in more than five decades." CPB president and CEO Patricia Harrison said the corporation had no choice but to prepare to shut down.

"Despite the extraordinary efforts of millions of Americans who called, wrote, and petitioned Congress to preserve federal funding for CPB, we now face the difficult reality of closing our operations," Harrison said.

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Vaccination rates among the country's kindergartners have fallen once again, with coverage of the measles, mumps, and rubella (MMR) vaccination dropping from 92.7 percent in the 2023–2024 school year to 92.5 percent in 2024–2025. The percentage changes are small across the board, but they represent thousands of children and an ongoing downward trend that makes the country more vulnerable to outbreaks.

In the latest school year, an estimated 286,000 young children were not fully protected against measles. At the same time, the country has seen numerous explosive measles outbreaks, with case counts in 2025 already higher than any other year since the highly infectious disease was declared eliminated in 2000. In fact, the case count is at a 33-year high.

The latest small decline is one in a series that is eroding the nation's ability to keep bygone infectious diseases at bay. In the 2019–2020 school year, 95 percent of kindergartners were protected against measles and other serious childhood diseases, such as polio. That 95 percent coverage is the target that health experts say prevents an infectious disease from spreading in a community. But amid the pandemic, vaccination rates fell, dropping to 93.9 percent MMR coverage in the 2020–2021 year, and have kept creeping downward.

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Tesla was found partially liable in a wrongful death lawsuit in a federal court in Miami today. It's the first time that a jury has found against the car company in a wrongful death case involving its Autopilot driver assistance system—previous cases have been dismissed or settled.

In 2019, George McGee was operating his Tesla Model S using Autopilot when he ran past a stop sign and through an intersection at 62 mph then struck a pair of people stargazing by the side of the road. Naibel Benavides was killed and her partner Dillon Angulo was left with a severe head injury.

While Tesla said that McGee was solely responsible, as the driver of the car, McGee told the court that he thought Autopilot "would assist me should I have a failure or should I miss something, should I make a mistake," a perception that Tesla and its CEO Elon Musk has done much to foster with highly misleading statistics that paint an impression of a brand that is much safer than in reality.

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Although NASA and its counterpart in Russia, Roscosmos, continue to work together on a daily basis, the leaders of the two organizations have not held face-to-face meetings since the middle of the first Trump administration, back in October 2018.

A lot has changed in the nearly eight years since then, including the Russian invasion of Ukraine, the rocky departure of Roscosmos leader Dmitry Rogozin in 2022 who was subsequently dispatched to the front lines of the war, several changes in NASA leadership, and more.

This drought in high-level meetings was finally broken this week when the relatively new leader of Roscosmos, Roscosmos Director General Dmitry Bakanov, visited the United States to view the launch of the Crew-11 mission from Florida, which included cosmonaut Oleg Platonov. Bakanov has also met with some of NASA's human spaceflight leaders at Johnson Space Center in Houston.

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Faced with mounting backlash, OpenAI removed a controversial ChatGPT feature that caused some users to unintentionally allow their private—and highly personal—chats to appear in search results.

Fast Company exposed the privacy issue on Wednesday, reporting that thousands of ChatGPT conversations were found in Google search results and likely only represented a sample of chats "visible to millions." While the indexing did not include identifying information about the ChatGPT users, some of their chats did share personal details—like highly specific descriptions of interpersonal relationships with friends and family members—perhaps making it possible to identify them, Fast Company found.

OpenAI's chief information security officer, Dane Stuckey, explained on X that all users whose chats were exposed opted in to indexing their chats by clicking a box after choosing to share a chat.

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Since 2023, Amazon has been framing Alexa+ as a monumental evolution of Amazon’s voice assistant that will make it more conversational, capable, and, for Amazon, lucrative. Amazon said in a press release on Thursday that it has given early access of the generative AI voice assistant to “millions” of people. The product isn’t publicly available yet, and some advertised features are still unavailable, but Amazon’s CEO is already considering loading the chatbot up with ads.

During an investors call yesterday, as reported by TechCrunch, Andy Jassy noted that Alexa+ started rolling out as early access to some customers in the US and that a broader rollout, including internationally, should happen later this year. An analyst on the call asked Amazon executives about Alexa+'s potential for “increasing engagement” long term.

Per a transcript of the call, Jassy responded by saying, in part, "I think over time, there will be opportunities, you know, as people are engaging in more multi-turn conversations to have advertising play a role to help people find discovery and also as a lever to drive revenue."

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It's a regrettable reality that there is never enough time to cover all the interesting scientific stories we come across each month. In the past, we've featured year-end roundups of cool science stories we (almost) missed. This year, we're experimenting with a monthly collection. July's list includes the discovery of the tomb of the first Maya king of Caracol in Belize, the fluid dynamics of tacking a sailboat, how to determine how fast blood was traveling when it stained cotton fabric, and how the structure of elephant ears could lead to more efficient indoor temperature control in future building designs, among other fun stories.

Tomb of first king of Caracol found

Credit: Caracol Archeological Project/University of Houston

Archaeologists Arlen and Diane Chase are the foremost experts on the ancient Maya city of Caracol in Belize and are helping to pioneer the use of airborne LiDAR to locate hidden structures in dense jungle, including a web of interconnected roadways and a cremation site in the center of the city's Northeast Acropolis plaza. They have been painstakingly excavating the site since the mid-1980s. Their latest discovery is the tomb of Te K'ab Chaak, Caracol's first ruler, who took the throne in 331 CE and founded a dynasty that lasted more than 460 years.

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The mid-engine sports car is an increasingly rare breed, but Lotus still carries the torch with its Emira, which is available with a choice of supercharged V6 or turbocharged inline-four cylinder engines. Between its steering, compact dimensions, standard manual transmission, and low mass, it’s a breath of fresh air, and it's ready to capture the hearts of enthusiasts. Pricing starts at $102,250 for the V6, which is in direct competition with the Porsche 718 Cayman GTS while it lasts, and a sea of mostly cosmetic options inflated this example to $116,950.

Like many Lotuses before it, the Emira’s foundation is a bonded aluminum chassis with Bilstein passive damper-equipped double-wishbone suspension at all four corners and the engine mounted right behind the seats. Curb weight isn’t as low as you’d think at 3,187 lbs (1,445 kg), but it’s contained within an overall length, width (sans mirrors), and height of 173, 75, and 48 inches (4,395 mm, 1,905 mm, 1,220 mm), respectively.

Mid-engine layouts generally put the same components like radiators in the same places, and the Emira's shape follows its predecessors (as well as cars from McLaren or Ferrari) with large intake ducts straked across its doors and rear fenders, a low nose, and little overhang past the axles. In fact, these are key in its sense-of-occasion appeal; climbing over its door sills and into its driver position is teeming with "let’s go" energy, and the view out the windshield—fenders, short nose, and all—is more exotic than anything else at its price.

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Microsoft says it plans to stop providing updates for Windows 11 SE, the special Windows 11 variant intended to compete with Google's ChromeOS in schools. The change was announced quietly via this Microsoft support document (spotted by the German-language site Dr. Windows), which says that Windows 11 SE will not be getting a version of this year's Windows 11 25H2 update. Security updates for Windows 11 SE will end in October of 2026, when Windows 11 24H2 stops receiving updates.

"Support for Windows 11 SE—including software updates, technical assistance, and security fixes—will end in October 2026," the document reads. "While your device will continue to work, we recommend transitioning to a device that supports another edition of Windows 11 to ensure continued support and security."

Microsoft has fielded multiple would-be ChromeOS competitors over the years, looking to prevent, suspend, and/or reverse Google's success in selling the laptops to schools and price-conscious laptop buyers.

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This is Part 2 of our interview with Col. Raj Agrawal, the former commander of the Space Force's Space Mission Delta 2.

If it seems like there's a satellite launch almost every day, the numbers will back you up.

The US Space Force's Mission Delta 2 is a unit that reports to Space Operations Command, with the job of sorting out the nearly 50,000 trackable objects humans have launched into orbit.

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Key Points

• QuantumScape has figured out how to make electric vehicle batteries better than the current state of the art.

• It's still not actually manufacturing these batteries at scale, and it’s not clear when it might begin doing so.

• This stock’s inability to hold on to its recent gains is a red flag, but the retracement seems exaggerated.

• 10 stocks we like better than QuantumScape ›

The past few weeks have been wild ones for QuantumScape (NYSE: QS) shareholders. After it drifted to a multi-year low in April, something suddenly lit a fire under this electric vehicle (EV) technology stock in late June. Shares were up by more than 200% less than a month later.

That something was a breakthrough in how the company manufactures its high-performance EV battery packs. A key step in the process can now be completed about 25 times faster than before, offering the market some assurance that this pre-commercialization outfit will have the production capacity it needs when it needs it.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Nearly half of that gain has unsurprisingly been unwound in the meantime. Investors jumped in response to the news, but eventually remembered that there's more this start-up needs to accomplish before mass commercialization. On the other hand, this pullback could also prove to be a fantastic second chance to dive in at a decent price.

What's QuantumScape?

First things first. What the heck is QuantumScape?

This company makes lithium-based batteries like the ones the majority of modern electric vehicles require. QuantumScape's batteries are better than the standard lithium-ion battery you'll find powering most EVs these days. Not only are its solid-state lithium battery packs capable of storing more energy, they don't require the usual anode, tackling two of the EV battery business' lingering challenges. This simpler design not only translates into lower manufacturing costs, but also lower overall materials costs on a per-watt basis.

The only problem? QuantumScape's batteries aren't actually being manufactured at commercial scale yet. It's not entirely clear how much it will cost or how difficult it will be to do so, either. The only powerpacks it's made so far are prototypes provided to carmakers that want to tinker with the technology in their own electric vehicles.

Still, the science is quite promising. The solid-state batteries the company has made provide on the order of 15% to 40% more driving range than comparable conventional lithium-ion batteries do.

Perhaps more importantly, they're far more durable. QuantumScape's own testing indicates that its powerpacks are capable of holding 95% of their original charge capacity, even after 1,000 recharges. That's about 300,000 miles worth of driving, alleviating one of would-be EV owners' top cost concerns -- the eventual replacement of their electric vehicle's battery at a price tag of anywhere between $10,000 and $20,000.

A big leap forward

Given all this, the company's story is compelling. The question is: How close is QuantumScape to actually manufacturing an affordable and functional solid-state EV battery at scale? Well, it's at least one step closer to this endzone than it was a little over a month ago.

In late June, QuantumScape announced it had successfully integrated its advanced "Cobra" separator process into the production of its baseline lithium cells. That means the ceramic-based separator between its batteries' solid cathodes and the company's anode alternative can now be layered into place about 25 times faster than the company's previous fabrication process.

That's the whole reason for July's brilliant burst of bullishness. Welcome to the world of story stocks.

Still, it's easy to see why the market suddenly became so excited. This is no small matter. This ceramic material negates the need for a porous polymer separator between the liquid electrolyte and lithium metal material found inside most common lithium-based batteries. Not only is the solid nature of QuantumScape's battery materials more efficient at transferring a charge from one side of the battery to another, there's little loss of this efficiency over time, compared to a fluid material.

Liquid electrolytes are also potentially just more dangerous than their solid-state counterparts, since they're more likely to be ignited and burn out of control than solid-state batteries.

More to the point for investors, being one (admittedly big) step closer to being able produce its batteries at scale is a big win for QuantumScape, and its shareholders. Even if the bulls did end up getting ahead of themselves and have since cooled their jets, that's what catapulted the stock higher in July, reminding investors that story stocks like this one can be quite unpredictable.

Don't waste the in-the-meantime

The overarching question remains: Is QuantumScape stock a buy following its battery breakthrough?

One of the key details glossed over by the noise of the recent run-up is that this $5 billion company is still bleeding money. It spent over $500 million last year, mostly on research and development, topping 2024's and 2023's outlays. And there's not a stitch of revenue yet. That's not an unusual situation for a start-up that's still refining what could be a game-changing technology; you have to spend money to make money. But it's a concern when there's less than $1 billion worth of cash and liquid assets on the balance sheet. Fund-raising could be in the cards.

There's also no assurance that paying customers will actually step up once at-scale production becomes possible. The company's said both should materialize sometime in 2026, but such timelines are difficult to predict when a technological solution is as new as this one is. Either way, meaningful revenue wouldn't likely start to flow until 2027 or even 2028, with profits unlikely for at least a while after that.

Nevertheless, Volkswagen -- the world's second-biggest automaker, and one of its biggest EV manufacturers -- has remained interested and financially supportive for years now when it didn't have to do so. It's QuantumScape's single biggest shareholder, in fact. Given how close QuantumScape is to the finish line now, it would be surprising if Volkswagen didn't see the development of these superior EV batteries all the way through.

The only catch is that the massive automaker probably doesn't care at this point if QuantumScape ever actually turns a profit. It just wants the advanced lithium batteries. That's not the case for individual QS shareholders.

Bottom line? Buy it if you're inclined to take a big risk with a potentially big reward. Just be prepared for plenty of volatility, and the possibility of significant losses. Even for most risk-tolerant investors, the odds of any meaningful long-term upside aren't quite high enough here to justify the amount of risk you'd actually be taking on.

Sure, that could change in the future. Just don't miss out on other opportunities in the meantime while you're waiting to see if this story stock that raises more questions than it answers actually pans out. Don't sweat not getting in on the proverbial ground floor, either. If QuantumScape's tech is going to pay off, that will become clear enough once real revenue starts to flow.

Should you invest $1,000 in QuantumScape right now?

Before you buy stock in QuantumScape, consider this:

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Key Points

• What do a medical stock and a coffee stock have in common? Strong revenue and consistent profits.

• Intuitive Surgical has a simple but effective model that has seen it through its fair share of market storms.

• Dutch Bros is leveraging a tried-and-true approach to implement its next wave of expansion.

• 10 stocks we like better than Intuitive Surgical ›

Investing in stocks for the long term can help you build a profitable portfolio that enables you to meet your personal financial goals. Not every stock will be a winner, and no investor is perfect. If you're investing in businesses for a long while, and only putting cash into stocks that you intend to hold for a minimum period of several years, this can help you narrow down the list of contenders for your portfolio.

If you're on the hunt for two stocks to buy and have cash to invest right now (money that you don't need for bills or other financial commitments), here are two fantastic stocks to consider putting all or part of that amount toward and holding for five years at least.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

1. Intuitive Surgical

Intuitive Surgical (NASDAQ: ISRG) has been a leader in surgical robotics for over two decades, since its first da Vinci system was approved. Today, its systems are approved for minimally invasive surgical procedures across various specialties, including urology, gynecology, general surgery, thoracic surgery, and cardiac surgery. Intuitive Surgical also sells the Ion system for minimally invasive lung biopsies.

The company's business model is somewhat unique in the medical device stock space because it makes money primarily through a "razor-and-blades" approach. It sells its systems, such as the da Vinci surgical system (the "razor") to healthcare providers either outright, through a usage-based system, or sales-type lease. However, Intuitive Surgical generates the majority of its revenue from the ongoing sale of instruments and accessories used with the system (the "blades") and from service contracts for maintenance and support.

This means that most of the company's revenue is from recurring sources, a figure that has risen steadily over the years. Consider Intuitive Surgical's Q2 financial results as an example. In the three-month period, the company reported total revenue of $2.4 billion, a 21% increase from one year ago. Out of that revenue total, $1.47 billion was from instruments and accessories sales, $574.7 million from system sales, and $391.2 million from services related to its surgical systems.

The quarter also marked Intuitive Surgical's 10,488th installment of a da Vinci surgical system, leaving it with an installed base that was up 14% from the year-ago period.

Intuitive Surgical has an impressive track record of being incredibly profitable. Its Q2 net income totaled $664 million, up 25% year over year. However, over the trailing five-year period, Intuitive Surgical has grown its annual earnings by a whopping 119%. Those growth figures have made plenty of investors interested in the stock, and I'm not here to tell you that Intuitive Surgical is trading cheap (its current price-to-earnings ratio is around 70).

That being said, the adoption of surgical robotics is still in its relatively early stages, giving Intuitive Surgical a prolonged runway for growth in both mature and emerging markets. For investors with an investment horizon of five years or more, this monster stock could be a compelling portfolio addition.

2. Dutch Bros

Dutch Bros (NYSE: BROS) has managed to make significant headway as a business in a highly competitive industry, all while growing its chain of coffee shops and delivering increasingly impressive financials in the process. The company's business model focuses on no-frills, drive-thru locations, emphasizing speed, customer service, and a limited menu of unique beverages.

This approach has allowed Dutch Bros to cultivate a loyal customer base and expand rapidly with lower overhead costs, a key differentiator from more traditional coffee shop models. Dutch Bros has been around since 1992, when it was founded by two brothers in Oregon who began the venture with a pushcart selling espresso. Today, Dutch Bros has more than 1,000 locations across the U.S., but management wants to have 7,000 locations eventually.

Dutch Bros had a pretty great start to the year in the first quarter of 2025, exceeding both revenue and earnings expectations that analysts had put forward. The company reported revenue of $355.2 million, a 29% increase year over year, and net income of $22.5 million, a whopping 39% jump from one year ago.

The company also opened 30 new shops across 11 U.S. states in Q1. Systemwide same-shop sales grew by 4.7%, while company-operated same-shop sales increased by 6.9%. Dutch Bros is actively opening new locations, particularly in the U.S. Southeast, and this is actively contributing to revenue growth.

The company only fully launched mobile order capabilities for its locations in 2024, but its customers are rapidly joining its platform as these newer endeavors continue to propel meaningful sales growth. For investors who want to gain exposure to the restaurant stock space and buy shares of a profitable company in the early stages of growth, Dutch Bros could be worth a second look.

Should you invest $1,000 in Intuitive Surgical right now?

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Key Points

• GAAP EPS of $(0.03) for Q2 2025 beat expectations, narrowing GAAP losses from $(0.42) in Q2 2024.

• Revenue (GAAP) reached $129.3 million, exceeding consensus estimates and increasing 1% year-over-year.

• These 10 stocks could mint the next wave of millionaires ›

American Vanguard (NYSE:AVD), a specialty and agricultural chemicals producer with a growing global footprint, released its earnings for the second quarter of fiscal 2025 on August 1, 2025. The company reported a GAAP earnings per share (EPS) loss of $(0.03), which surpassed analyst GAAP estimates of $(0.11). Revenue (GAAP) came in at $129.3 million, topping GAAP forecasts of $125.0 million and slightly up from $128.2 million in GAAP net sales in Q2 2024. Key achievements for the quarter included strong gains in adjusted EBITDA, an expansion in gross profit margins to 31% from 29% in Q2 2024, and continued reductions in operating expenses and debt. The results marked an early turnaround from the prior year’s losses, as American Vanguard reported GAAP EPS of $(0.03) compared to $(0.42) in Q2 2024, though Continued net losses (GAAP) and restrained top-line growth in the first half of 2025 highlight that challenges remain.

Metric	Q2 2025	Q2 2025 Estimate	Q2 2024	Y/Y Change
EPS (GAAP)	($0.03)	($0.11)	($0.42)	N/A
Revenue (GAAP)	$129.3 million	$125.0 million	$128.2 million	1%
Adjusted EBITDA	$11.0 million		$6.2 million	77%
Gross Profit Margin	31%		29%	2 pp

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Company Overview and Focus

American Vanguard is a North America–based manufacturer specializing in crop protection chemicals, including insecticides, herbicides, and soil fumigants for agriculture and turf. Its product portfolio also extends to environmental products and biological solutions, serving customers in the United States and over 40 international markets.

In recent years, the company’s strategy has centered on innovation—especially “green” chemistry, regulatory compliance, and expanding its global presence. American Vanguard’s performance relies on its ability to develop new formulations, execute cost discipline, comply with evolving regulations, and differentiate its offerings in niche markets.

Quarterly Performance: Recovery in Progress

Financial results for the period showed tangible progress in operational improvement. GAAP EPS came in well ahead of estimates, narrowing the quarterly net loss (GAAP) to $0.85 million from $11.7 million in the prior-year quarter. While overall sales (GAAP) grew 1%, this reversed the declines of earlier quarters and indicated an easing of the customer destocking cycle. Segment results showed U.S. crop sales rose 1% to $52.7 million (GAAP). Management noted, “Customer destocking is beginning to subside. Against this backdrop, we were able to increase revenue by approximately 1% year-over-year (GAAP).”

The top-line result masked a much stronger recovery in profitability. Adjusted EBITDA, a measure of core operating performance that excludes unusual items, climbed to $11.0 million from $6.2 million year-over-year. The gross profit margin—calculated as gross profit divided by revenue—jumped two percentage points year-over-year to 31% (GAAP). The improvement in gross profit margin came despite flat sales and reflected both lower cost of goods sold and improvements in manufacturing and procurement processes (GAAP). Gross profit itself rose 7% year-over-year on a GAAP basis, assisted by a 2% reduction in cost of sales year-over-year.

Cost discipline underpinned these gains. Selling, general, and administrative (SG&A) expense (GAAP) dropped to $28.8 million from $31.1 million. Research, product development, and regulatory costs were also sharply lower at $5.8 million, reflecting reduced spending on transformation initiatives. One-time transformation charges, tied to restructuring efforts, fell to $1.6 million from $7.3 million year-over-year. As a result, operating income improved from a loss of $9.2 million in Q2 2024 to a gain of $4.4 million.

Balance sheet trends showed continued focus on liquidity and working capital management. Inventory at the end of Q2 2025 was $191 million, representing a $53 million reduction from a year earlier. Debt outstanding also fell $22 million compared to last year to $189 million at quarter-end. The company highlighted its ongoing plan to use free cash flow primarily to reduce debt going forward.

Within its product portfolio, metam sodium (a soil fumigant) and Thimet (a soil insecticide for peanuts and corn) were called out as bright spots. Prior headwinds such as the withdrawal of Dacthal (previously used in certain crops), weaker demand in the agave market in Mexico, and drought in Australia weighed on international results, but did not deepen in the period. There was no material commentary on new product launches for the quarter, though management emphasized an ongoing shift toward differentiated and sustainable solutions.

No significant regulatory or compliance events were noted, though costs in this area remain a structural consideration. Cash used in operations for the six months ended June 30, 2025 stood at $39.8 million, an improvement from $49.4 million in the same period of 2024.

The company did not announce any dividend changes for the quarter and did not specify a current payout. AVD does not currently pay a dividend.

Guidance and Looking Ahead

American Vanguard’s management reaffirmed its full-year guidance, despite earlier reductions to estimates in the first quarter. For FY2025, the company expects revenue of $535–$545 million (GAAP), and adjusted EBITDA guidance of $40–$44 million for the full year 2025 (non-GAAP). This outlook reflects ongoing caution about the pace of agricultural recovery and the persistence of competitive market dynamics.

Leadership continues to focus on cost control, inventory reduction, and margin improvement. Management stated, “the agriculture economy appears to be in the early stages of a recovery.” Investors will want to monitor revenue trajectory, progress on restoring sustained profitability, and execution on debt reduction in the coming quarters. No new quantitative guidance was issued for dividends or other near-term capital allocation initiatives. Persistent net losses and modest top-line growth remain areas for close scrutiny as the turnaround progresses.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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Key Points

• GAAP revenue exceeded expectations in Q2 2025, reaching $81.8 million versus the $76.21 million estimate, Core revenue reached $81.7 million, up 16% year over year.

• Non-GAAP earnings per share were $0.07, beating analyst expectations of a $(0.18) non-GAAP loss.

• Full-year 2025 core revenue guidance was raised to $320 million; the company continues to project a loss for the year.

• These 10 stocks could mint the next wave of millionaires ›

Fulgent Genetics (NASDAQ:FLGT), a genomic testing company focused on precision diagnostics and therapeutic development, reported better-than-expected results in its Q2 2025 earnings release dated August 1, 2025. The company posted GAAP revenue of $81.8 million, comfortably surpassing the analyst consensus GAAP revenue estimate of $76.2 million. On a non-GAAP basis, earnings per share reached $0.07, outperforming the anticipated $(0.18) non-GAAP loss. These results reflected strong momentum in the Laboratory Services business and translated into a raised full-year 2025 core revenue outlook of $320.0 million. However, despite the top-line and non-GAAP earnings outperformance, Fulgent reported a wider GAAP loss due to a one-time impairment. The quarter highlighted revenue growth, margin improvements, and strategic progress, balanced against rising operating expenses and ongoing GAAP losses.

Metric	Q2 2025	Q2 2025 Estimate	Q2 2024	Y/Y Change
EPS (Non-GAAP)	$0.07	($0.18)	$0.15	(53.3%)
Revenue (GAAP)	$81.8 million	$76.21 million	$71.0 million	15.2%
Non-GAAP Gross Margin	44.2%		40.1%	4.1 pp
Adjusted EBITDA	($3.0 million)		($0.7 million)	329%
Cash, Cash Equivalents & Investments	$777.5 million			N/A

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

About Fulgent Genetics and Business Model

Fulgent Genetics is a company specializing in precision diagnosis through advanced genetic testing and the development of innovative therapeutics. It operates with two main business pillars: Laboratory Services, which delivers a broad menu of genetic and diagnostic tests using proprietary technology, and Therapeutic Development, which focuses on new cancer treatments using nanoencapsulation platforms for more effective drug delivery.

The core strength of the company's Laboratory Services is its ability to rapidly develop and launch genetic tests. This flexibility allowed Fulgent to respond during the COVID-19 pandemic and now positions it to meet demands in reproductive health, carrier screening, and rare disease diagnostics. Its key areas of focus include product innovation, expanding partnerships, and compliance with healthcare regulations.

Quarterly Developments and Segment Performance

The quarter was defined by robust growth in Laboratory Services, which continues to drive the majority of the company’s revenue. Core revenue reached $81.7 million, up 16% year over year, with COVID-19 testing making up a negligible portion. Management credited reproductive health diagnostics, expanded carrier screening under its "Beacon" product family, and strong legacy test volumes as central to this growth. New client wins, such as contracts with the U.S. Department of Veterans Affairs and Foundation Medicine, are expected to provide upside and contribute to market share gains as onboarding progresses.

Significant investments in digital pathology also stood out. The switch to digital slide processing and growing use of artificial intelligence (AI) in laboratory workflow were noted as productivity enhancers. Digital pathology allows remote reading of sample slides, increasing recruitment possibilities for specialized pathologists and helping improve turnaround times.

In the Therapeutic Development segment, Fulgent pressed forward with clinical trials for cancer drug candidates based on its nanoencapsulation technology. FID-007 is undergoing a phase 2 trial, and FID-022 is entering phase 1. Both represent longer-term potential. Clinical investments in these programs draw on the company's sizable cash reserves and represent a future growth lever.

The biopharma services division also expanded, offering a broader range of services to pharmaceutical clients. Revenue from anatomic pathology (the laboratory analysis of tissue samples for disease diagnosis) returned to year-over-year growth after prior investment in digital systems and new sales hires. Management acknowledged that sequential fluctuations are likely, particularly in biopharma services, due to the project-based nature of client work.

Profitability and Financial Position

Gross margin improved to 44.2% (non-GAAP), up from the margin in the prior-year period. Adjusted EBITDA, a measure of operating profit excluding certain costs, was a loss of $3.0 million, widened versus the same period last year.

GAAP net results showed a larger loss because of a $9.9 million one-time, non-cash asset impairment. General and administrative, as well as sales and marketing expenses, each rose, reflecting ongoing investments across both major business lines. The company continued to repurchase its own shares, buying back approximately 130,000 shares for $2.2 million and totaling $110.4 million in buybacks since March 2022. Total liquidity stood at $777.5 million in cash, cash equivalents, restricted cash, and investments in marketable securities as of the end of the quarter, supporting both pipeline development and potential further share repurchase activity.

Looking Ahead: Management Guidance and Investor Considerations

Management raised its FY2025 core revenue outlook to $320 million, a $10 million increase from previous guidance, citing strong order momentum and new client wins. The company now expects a GAAP loss of approximately $(2.10) per share for FY2025, reflecting the one-time impairment taken in the second quarter, and projects a smaller non-GAAP loss of $(0.35) per share for FY2025. The cash balance is forecast at approximately $770.0 million as of December 31, 2025, after accounting for continued investments and potential buybacks.

Fulgent does not currently pay a dividend. Areas for investors to track in coming periods include progress in the clinical pipeline and responses to industry regulatory changes. Management also continues to monitor developments around laboratory-developed test regulations, which may impact future operations and compliance requirements.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Fulgent Genetics. The Motley Fool has a disclosure policy.

Key Points

• Record quarterly revenue (GAAP) of $8.1 million in Q2 FY2025, up 61% year-over-year (GAAP), with the company returning to profitability.

• Gross margin (GAAP) was 16.5%, showing operational improvement, but remains below historical goals.

• First commercial order for AlMax™ material and four SBIR contracts highlight progress in technology and market outreach.

• These 10 stocks could mint the next wave of millionaires ›

Cps Technologies (NASDAQ:CPSH), a specialist in advanced metal matrix composite materials for high-performance industrial, electronics, and defense applications, released its Q2 FY2025 financial results on August 1, 2025. The most important takeaway was record revenue, which rose to $8.1 million from $5.0 million (GAAP), alongside a swing back to profitability with earnings per share (GAAP) of $0.01. While analyst estimates were not available for this quarter, these results set new company highs for quarterly sales and reversed last year's GAAP net loss. Margin improvement was also notable in Q1 and Q2, though still below management's targets; leadership identified ongoing operational upgrades as a priority. Overall, the quarter demonstrated strong sales execution, renewed profitability, and continued R&D progress.

Metric	Q2 2025	Q2 2024	Y/Y Change
EPS	$0.01	$(0.07)	$0.08
Revenue	$8.1 million	$5.0 million	62%
Gross Margin	16.5%	(4.6%)	21.1 pp
Operating Profit (Loss)	$0.1 million	$(1.3 million)	N/A
Net Income (Loss)	$0.1 million	$(0.9 million)	111.1%

About Cps Technologies: Business Overview and Core Success Factors

Cps Technologies designs and manufactures metal matrix composites—high-tech materials combining metals and ceramics to deliver lightweight strength and thermal properties needed in sectors like defense, energy, and high-performance electronics. Its core offering, AlSiC, provides unique benefits in conductivity, weight, and reliability, critical for advanced circuit packaging, military applications, and energy infrastructure.

The business has focused recently on expanding its product catalog and market reach, particularly through commercialization of new materials like AlMax™ and Fiber Reinforced Aluminum (FRA). Success for the company depends on bringing innovative materials to market, maintaining a lead in quality and performance, and managing risks associated with customer concentration and global competition.

Quarter in Review: Financial Performance, Product Developments, and Operations

Revenue (GAAP) reached a new peak at $8.1 million, up from $5.0 million in the prior-year period. This growth was attributed chiefly to increased shipments across core product lines and higher production rates. Management noted demand strength from the electronics, energy, and defense sectors, supporting the firm's move to a third production shift late last year. The order backlog and diversification across sectors like transportation, smart grid, and aerospace have played a key role.

Gross profit (GAAP) turned positive, with the company reporting $1.3 million after having a gross loss in the prior year. Gross margin—the amount of money kept from each dollar of sales after direct costs—rose more than 21 percentage points to 16.5% (GAAP) compared to the prior-year period. The improvement was driven by higher sales volumes and operational efficiencies, including the addition of a third production shift. However, the margin remains below the roughly 30% level seen in peak quarters during 2023. The company cited yield challenges following rapid production scale-up, along with a shift toward lower-margin product mix as reasons for the shortfall. Management stated, “They're still not to the level that we want them at and we -- they're still not to the level they were a year ago.”

Profit swung into positive territory, with $0.1 million in operating profit (GAAP) compared to a $1.3 million loss in the prior year. Net income (GAAP) moved similarly, reflecting not only revenue growth but also better handling of costs, even as inventory and working capital increased in anticipation of further growth. The firm maintained a healthy equity base, with cash and equivalents of $2.4 million (GAAP) and no notable long-term debt. Receivables and inventory rose in line with sales activity, a typical pattern as order volumes expand.

On the technology front, Cps Technologies achieved key milestones in product innovation. The commercialization of AlMax™, a new material boasting superior performance properties to conventional aluminum, moved from exclusive licensing to revenue-generating order in under 18 months. The firm received four Small Business Innovation Research (SBIR) contracts during the first half, with the latest for developing lightweight solutions for the U.S. Marine Corps’ Amphibious Combat Vehicle. These contracts not only support near-term revenue but also validate the company’s research capabilities and enhance its profile in defense markets. Continued partnership with Triton Systems for FRA materials—engineered to be both strong and lightweight—signals future product avenues in segments like military ground vehicles and aerospace.

Other operational notes included a rise in inventories to $5.2 million (GAAP) and accounts receivable to $5.6 million as of June 28, 2025.

Looking Ahead: Management Outlook and Sector Considerations

Management provided a qualitative outlook, stating that revenue is expected to remain strong for the remainder of fiscal 2025. The leadership team forecasted further improvement in gross margins and overall profitability, citing operational upgrading and ongoing efficiency projects. They were candid in acknowledging that current margins must improve. Key near-term initiatives include enhancing yield after the third shift expansion and streamlining product mix to optimize profitability.

No detailed financial guidance for the next quarter or full year was provided by management. Investors should watch for progress in margin expansion, the pace of commercialization for new materials such as AlMax™ and FRA, and further SBIR or defense-related project awards. Customer concentration and exposure to competitive pricing, especially from international firms, remain areas to monitor.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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Key Points

• A European AI infrastructure company is quietly outgrowing established cloud giants with purpose-built technology and strategic positioning.

• The productivity software leader is successfully monetizing AI integration across its massive user base, while competitors struggle with adoption.

• The social media giant's AI investments are already paying dividends in advertising revenue even as it pursues ambitious superintelligence goals.

• 10 stocks we like better than Nebius Group ›

Artificial intelligence (AI) is one of the most transformative technologies of our time, driving unprecedented advancements in sectors ranging from healthcare and transportation to communications and beyond. For investors, this creates a landmark opportunity to back the companies at the forefront of this revolution.

As we head into August, three companies in particular stand out for their strategic positioning and potential for growth in the AI space.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

The European dark horse with massive ambitions

Nebius Group (NASDAQ: NBIS) is emerging as a serious contender in the AI infrastructure race. The Amsterdam-based company, led by former Yandex founder Arkady Volozh, reported staggering 385% year-over-year revenue growth in Q1 2025, reaching $55.3 million, driven primarily by demand for its AI infrastructure services. The stock has surged 92% year to date as investors begin to take notice.

What sets Nebius apart is its vertically integrated approach. Rather than retrofitting general-purpose cloud infrastructure for AI workloads, Nebius builds custom hardware and software specifically for intensive AI training and inference.

The company expects to reach $750 million to $1 billion in annual recurring revenue (ARR) by the end of 2025. Backed by 94% low-carbon electricity and a Europe-first strategy, Nebius is positioning itself as a credible long-term alternative to the U.S. hyperscalers, making it one of the most compelling buy-and-hold plays in the AI infrastructure space.

The productivity powerhouse monetizing AI at scale

Microsoft (NASDAQ: MSFT) stands out as the most pragmatic AI play in tech, with shares up roughly 24% year to date. In fiscal year 2025, the company reported that Azure and other cloud services generated more than $75 billion in revenue, marking a 34% year over year increase. Microsoft also posted $76.4 billion in total revenue for its fiscal fourth quarter, beating analyst expectations and pushing shares to new highs.

Microsoft's strength lies in its integration strategy. Rather than launching stand-alone AI tools, the company has embedded Copilot across its core productivity suite, contributing to measurable growth across Microsoft 365 and cloud services. Teams Phone adoption surpassed 20 million users, and Copilot-enabled services now reach more than 100 million.

With over a billion users across Office and Windows, Microsoft has unmatched distribution for scaling AI tools globally. The company plans to invest $30 billion this quarter alone in AI-enabled infrastructure, reinforcing its leadership in both profitability and long-term platform dominance.

What's the bottom line? While others race to catch up, Microsoft is already cashing in, turning its massive installed base into the most profitable AI deployment machine on the planet.

The advertising giant reimagining social with superintelligence

Meta Platforms (NASDAQ: META) is taking the most aggressive swing at AI integration, with shares climbing 29% year to date after a blowout Q2. Total revenue hit $47.5 billion, up 22% from the prior year, with advertising contributing $46.6 billion and outperforming expectations. CEO Mark Zuckerberg's push to embed "personal superintelligence" across its platforms is beginning to show measurable traction.

Advanced AI tools are powering more precise ad delivery and improved monetization, while the company's $14.3 billion stake in Scale AI signals an intent to anchor the next generation of core models. Daily engagement remains strong, with 3.48 billion people using Meta's apps each day as of June 2025, a 6% year-over-year gain.

Meta lifted its full-year capital expenditure forecast to between $66 billion and $72 billion, largely to support AI infrastructure and training. But with profit engines running at full speed and unmatched insight into user behavior, Meta is gearing up to dominate the global attention economy.

The AI infrastructure build-out is just beginning

These three companies represent distinct strategies in the ongoing AI hyperbuild. Nebius offers pure-play infrastructure exposure with a European edge; Microsoft delivers integrated productivity gains with immediate monetization; and Meta combines massive social scale with leading-edge AI development. For long-term investors, holding all three offers a balanced way to capture the full spectrum of AI-driven value creation.

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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 $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,257!*

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George Budwell has positions in Microsoft. The Motley Fool has positions in and recommends Meta Platforms and Microsoft. The Motley Fool recommends Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.