In this article, we will look at the 10 Best Stocks That Beat Earnings Estimates.
Stocks that beat earnings estimates stand out because they do more than clear a quarterly hurdle. They signal that a company is executing better than the market expected, whether through stronger demand, better margins, or sharper cost control. Earnings beats are important in a market where investors have become more selective and less willing to accept weak results. A Franklin Templeton article states that, “Investment opportunities increased as the market broadened, and corporate earnings growth exceeded expectations.” Earnings beats tend to matter more when leadership is widening, and investors are looking beyond the usual names.
Other asset managers are making a similar case from a forward-looking angle. Fidelity, referring to AI, says “the powerful earnings growth trend it has spurred will continue into 2026,” while also noting that “Valuations point to opportunities.” These firms are suggesting that earnings momentum matters, and that companies delivering better-than-expected results can continue to separate themselves in a market that is hunting for durable growth.
Taken together, these suggest that beating earnings estimates is not just a short-term headline event. It can be a sign that a company has stronger momentum, better positioning, or more resilience than investors had priced in. With that in mind, we will look at the 10 Best Stocks That Beat Earnings Estimates.
Our Methodology
We used the Finviz screener to identify stocks that have recently reported earnings that beat consensus estimates. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Lamb Weston Holdings, Inc. (NYSE:LW)
On April 1, 2026, JPMorgan said Lamb Weston Holdings, Inc. (NYSE:LW) delivered a Q3 EPS beat, driven by stronger-than-expected performance in North America that offset international weakness, higher interest expense, and tax impacts. The firm described the results as “better than feared,” noting the company narrowed its full-year EBITDA guidance while raising the midpoint, signaling stabilization in North America alongside more predictable international pressures. JPMorgan maintained a Neutral rating on the shares.
Earlier that day, Lamb Weston Holdings, Inc. (NYSE:LW) reported Q3 adjusted EPS of 72c versus 61c consensus, with revenue of $1.56B compared to $1.49B consensus. CEO Mike Smith said the quarter was supported by continued strength in North America and disciplined execution, while highlighting ongoing efforts to align supply and demand and manage a competitive international environment.
The company narrowed its FY26 revenue outlook to $6.45B-$6.55B from $6.35B-$6.55B versus $6.53B consensus and adjusted EBITDA guidance to $1.08B-$1.14B from $1B-$1.2B. Lamb Weston also expects $400M in capex and said its outlook reflects currency benefits, tariff impacts, ongoing disruption in parts of the Middle East, and the inclusion of a 53rd week in fiscal 2026.
Lamb Weston Holdings, Inc. (NYSE:LW) produces and markets frozen potato products globally.
9. McCormick & Company, Incorporated (NYSE:MKC)
On April 1, 2026, JPMorgan analyst Thomas Palmer lowered the price target on McCormick & Company, Incorporated (NYSE:MKC) to $64 from $67 and maintained an Overweight rating, noting the company is not receiving the “benefit of the doubt” from investors regarding its food deal.
On March 31, 2026, McCormick & Company, Incorporated (NYSE:MKC) reported Q1 revenue of $1.87B, above the $1.79B consensus estimate. CEO Brendan Foley said the company delivered growth in sales, operating income, and earnings per share, supported by the McCormick de Mexico acquisition and organic growth across both segments, alongside cost discipline that drove margin expansion.
The company reaffirmed its FY26 adjusted EPS guidance of $3.05-$3.13 versus $3.09 consensus and expects revenue growth of 13%-17%, with a projected tax rate of 24%. Management said volumes were in line with expectations and anticipates sequential improvement through the year, supported by brand investments, innovation, and distribution gains.
McCormick & Company, Incorporated (NYSE:MKC) produces and sells spices, seasonings, and related food products globally.
8. UniFirst Corporation (NYSE:UNF)
On April 2, 2026, UBS analyst Joshua Chan raised the price target on UniFirst Corporation (NYSE:UNF) to $260 from $206 and maintained a Neutral rating, describing the company’s latest quarter as “solid” with results coming in slightly ahead of expectations.
On April 1, 2026, UniFirst Corporation (NYSE:UNF) reported Q2 revenue of $622.51M, above the $614.91M consensus estimate. CEO Steven Sintros said the company delivered steady performance while continuing to invest in growth and operational efficiency, highlighting strength in its service-driven model and customer retention.
Last month, UniFirst Corporation (NYSE:UNF) and Cintas Corporation (NASDAQ:CTAS) announced a definitive agreement under which Cintas will acquire UniFirst for $310 per share in a mix of cash and stock, implying an enterprise value of approximately $5.5B. The deal includes expected operating cost synergies of about $375M within four years and is projected to be accretive to earnings by the end of the second full year post-close. The transaction, which has been approved by both companies’ boards and supported by UniFirst’s controlling shareholders, is expected to close in the second half of 2026, subject to regulatory and shareholder approvals.
UniFirst Corporation (NYSE:UNF) provides workplace uniforms and protective clothing services across North America and Europe.
7. FactSet Research Systems Inc. (NYSE:FDS)
On April 1, 2026, RBC Capital maintained a Sector Perform rating and a $243 price target on FactSet Research Systems Inc. (NYSE:FDS) following its Q2 results, noting the quarter exceeded expectations on competitive wins and improved pricing capture. The firm said execution remains solid, supported by updated sales incentives, and expects operating leverage to support margin expansion into 2027 and over the medium term.
On March 31, 2026, FactSet Research Systems Inc. (NYSE:FDS) reported Q2 adjusted EPS of $4.46, above the $4.38 consensus estimate, with revenue of $611.02M versus $604.95M consensus. CEO Sanoke Viswanathan pointed to accelerating growth driven by demand for its data and workflow solutions, while highlighting continued client engagement and execution.
The company raised its FY26 adjusted EPS outlook to $17.25-$17.75 from $16.90-$17.60 compared to $17.50 consensus and increased its revenue guidance to $2.45B-$2.47B from $2.42B-$2.45B versus $2.45B consensus, while maintaining an expected tax rate of 18%-19%. CFO Helen Shan noted early contributions from AI and increased share repurchases as supportive of long-term growth.
FactSet Research Systems Inc. (NYSE:FDS) provides financial data and analytics solutions to the investment community.
6. Penguin Solutions, Inc. (NASDAQ:PENG)
On April 2, 2026, Rosenblatt raised the price target on Penguin Solutions, Inc. (NASDAQ:PENG) to $32 from $30 and maintained a Buy rating, following a fiscal Q2 report that exceeded expectations and prompted management to raise its FY26 revenue growth outlook to 12% from 6%. The firm noted the company added five new customers in its advanced computing segment, highlighting continued expansion beyond hyperscalers as a driver of more consistent and profitable growth.
On the same day, Needham raised its price target on Penguin Solutions, Inc. (NASDAQ:PENG) to $27 from $25 and maintained a Buy rating.
On April 1, 2026, Penguin Solutions, Inc. (NASDAQ:PENG) reported Q2 adjusted EPS of 52c, above the 42c consensus estimate, with revenue of $343M versus $339M consensus. CEO Kash Shaikh pointed to strong demand from enterprises, governments, and cloud providers building AI infrastructure, noting the company added five AI/HPC customers during the quarter and continues to see momentum in its pipeline, supported by growing demand for memory-driven AI workloads.
Penguin Solutions, Inc. (NASDAQ:PENG) provides enterprise solutions across advanced computing, memory, and LED technologies.
While we acknowledge the potential of PENG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PENG and that has 100x upside potential, check out our report about the cheapest AI stock.
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