J.P. Morgan U.S. FTM 16 Jul 26 U.S. HPC - The Bar & Debates Into Earnings; Hardware & Networking; BLK; GFL and More

Research evidence excerpt

J.P. Morgan U.S. FTM 16 Jul 26 U.S. HPC - The Bar & Debates Into Earnings; Hardware & Networking; BLK; GFL and More

North America Equity Research

U.S. First to Market 16 July 2026

Top Stories

AFL | U.S. HPC - The Bar & Debates Into Earnings (Andrea Teixeira, CFA)

Expect Slightly Better Tone as Commodities Pressures Alleviate Somewhat, and Top Line Is Still

Soft

We are previewing 13 Household & Personal Care stocks within our coverage universe of 15 in this space (we remain

restricted on KMB and KVUE due to the JPMorgan involvement in the merger). While we expect another lackluster quarter,

there are some green-shoots including (1) sequentially better consumption in tracked channel data, partially due to easier

comparisons but also the wealth effect, (2) better than feared commodities pressure, and (3) better visibility (albeit still in the

works) of the tariff refunds.

CW | Hardware & Networking (Joseph Cardoso/Manmohanpreet Singh)

C2Q26 Preview: Fundamentals Progress Even as Valuations Retreat; Favor Optical, EMS &

Hardware; Place GLW on -VE Catalyst Watch

Heading into C2Q26 earnings season, valuation once again stands out as the largest incremental change across our Hardware

& Networking coverage relative to the prior quarter; though, this time the shift has largely been to the downside, unlike in

previous quarters. Importantly, this valuation pullback contrasts with the fundamentals we have observed, which have

progressed more steadily and linearly, with AI infrastructure remaining the primary growth driver, though increasingly appearing

to be accompanied by burgeoning demand for traditional infrastructure as well.

| AFL | BlackRock (Michael Cho) (BLK, OW, PT $1,364.00)

Upgrading to Overweight - A Strong 2Q26 with More Operating Leverage Ahead; Strong