‘I said in January that I expected a busy first full year as CEO and that has certainly been the case so far’

A North East wealth manager expects to have acquired more than 20 companies into the group by the end of the year, as a result of its established buy-out model.

Directors at Sunderland-based Fairstone Group have hailed a busy year in which it added “substantially” to the business, acquiring eight companies in Northern Scotland, Northern Ireland, the South of England, the West Country, the East Midlands and the North East. It said the acquisitions expand and strengthen its geographic footprint across the UK.

The transactions included Fairstone’s largest purchase to date, the acquisition of West Midlands wealth management and corporate financial planning specialist Prosperity Wealth in February.

All eight firms acquired in the first quarter came into Fairstone, based in Doxford International Business Park in Sunderland, via the Downstream Buy-Out (DBO) model. They have collectively pumped more than £2bn of client assets under management into the group.

And directors revealed 13 more full acquisitions will be made later this year. Fairstone’s DBO model sees the business act as an investment partner, providing the centralised resource, technology, and capital to support the ongoing growth of ambitious financial firms ahead of a future sale. Once fully integrated, partner firms are then able to sell to Fairstone.

Fairstone CEO Steven Cooper said: “I said in January that I expected a busy first full year as CEO and that has certainly been the case so far. In just the first quarter of the year, we have added substantially to the business, not only in terms of the bare figures of client assets under management, but also in terms of our strategic presence and the depth and breadth of the services which we can offer our clients.

“For example, bringing Prosperity on board has added substantially to our expertise in areas such as corporate financial planning and employee benefits. These are things which not only benefit those clients who Prosperity have brought with them to Fairstone, but also to our existing and future clients right across the country.

“Every one of the eight firms who became part of Fairstone during Q1 brings something new to the business and strengthens the group as we look to help many more people achieve their financial goals and face the future with confidence.”

The eight firms acquired so far this year initially joined the DBO programme between two and four years ago, enabling staff and processes to become fully integrated into Fairstone before becoming part of the group.

Fairstone now operates from more than 50 locations, employing over 1,350 operational staff and regulated advisers. It oversees £23bn in assets under management on behalf of over 125,000 clients.

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NEW YORK — Alphabet Inc. Class C shares advanced 0.62 percent to $387.22 in morning trading on Wednesday, extending recent gains as investors continued to reward the Google parent’s strong positioning in artificial intelligence and robust cloud performance following its impressive first-quarter results.

The modest uptick reflected ongoing positive sentiment around Alphabet’s AI investments, accelerating Google Cloud growth and resilient advertising revenue. The stock has shown notable strength in 2026, with analysts highlighting its full-stack AI approach and expanding enterprise opportunities as key drivers.

Alphabet’s market capitalization remains near record levels, approaching or surpassing major milestones amid broader enthusiasm for technology companies demonstrating clear AI monetization paths. Wednesday’s trading occurred against a backdrop of steady broader market gains, with technology shares generally favored on continued innovation narratives.

Strong Q1 2026 Performance Sets Positive Tone

The company reported first-quarter revenue of $109.9 billion, up 22 percent year-over-year, beating expectations and marking the 11th consecutive quarter of double-digit growth. Google Cloud revenue surged 63 percent to $20 billion, driven by enterprise AI solutions and infrastructure demand.

Google Services revenue increased 16 percent to $89.6 billion, supported by 19 percent growth in Search and strong performance in subscriptions. Operating income rose 30 percent with margin expansion to 36.1 percent, while net income jumped 81 percent to $62.6 billion. Earnings per share reached $5.11.

CEO Sundar Pichai described the quarter as a “terrific start,” noting AI experiences driving record query volumes in Search and significant backlog growth in Cloud. Paid subscriptions reached 350 million, with Gemini Enterprise users growing 40 percent quarter-over-quarter.

AI and Cloud as Core Growth Engines

Alphabet has aggressively invested in AI infrastructure and models, particularly through Gemini. The company’s full-stack approach — combining first-party models, cloud infrastructure and consumer applications — has differentiated it in a competitive landscape. Google Cloud Platform backlog nearly doubled to over $460 billion.

Recent developments, including expanded partnerships and infrastructure commitments, have reinforced investor optimism. Reports of substantial cloud commitments from major AI players have supported share price momentum.

The company continues heavy capital expenditures to build AI-optimized data centers, with 2026 guidance reflecting significant investment. While elevated spending has raised margin concerns in the past, strong revenue conversion has helped alleviate those worries.

Analyst Optimism and Valuation

Wall Street has responded favorably to Alphabet’s execution. Multiple firms have raised price targets in recent weeks, with some forecasting $425 to $445 per share. Consensus leans toward Buy ratings, citing AI leadership, advertising resilience and cloud acceleration.

The stock’s valuation reflects its growth profile, though some analysts argue it remains attractive relative to long-term AI opportunities. Year-to-date performance in 2026 has outpaced several Magnificent Seven peers, underscoring Alphabet’s comeback narrative.

Regulatory and Competitive Landscape

Alphabet continues navigating regulatory challenges, including antitrust matters. Recent court decisions have provided some relief, with rulings against more severe remedies supporting investor sentiment. The company maintains strong legal defenses while advancing product innovation.

Competition in AI remains intense, with rivals investing heavily in models and infrastructure. Alphabet’s integration of Gemini across Search, Cloud and consumer apps has helped maintain relevance and drive usage growth. Waymo’s autonomous driving progress, surpassing 500,000 weekly rides, adds another growth vector.

Broader Market Context

Technology shares have benefited from sustained AI enthusiasm and expectations of stable monetary policy. Alphabet’s performance contributes to sector strength, with its advertising and cloud businesses providing diversified exposure compared to pure-play AI hardware companies.

Global economic conditions, consumer spending trends and geopolitical factors remain watchpoints. However, Alphabet’s diversified revenue streams — spanning digital ads, cloud, subscriptions and emerging technologies — provide relative stability.

Outlook and Strategic Priorities

Management has expressed confidence in sustained momentum. Key focus areas include further AI integration, cloud market share gains and international expansion. The dividend increase to $0.22 per share underscores commitment to shareholder returns.

As the year progresses, investors will monitor Q2 results for continued cloud acceleration and AI monetization evidence. Capital expenditure levels and margin trends will remain closely watched amid heavy AI infrastructure spending.

Alphabet’s ability to balance innovation investment with profitability has been a strength. The company’s vast data resources, distribution reach and engineering talent position it favorably for long-term AI leadership.

Wednesday’s trading continues a pattern of measured gains supported by fundamental progress. As one of the world’s most valuable companies, Alphabet remains central to technology sector performance and broader market sentiment. Its ongoing transformation into an AI powerhouse will likely shape its trajectory through the remainder of 2026 and beyond.

Volumes were high in today’s session as more than 87 crore shares worth Rs 1,904 crore changed hands, stock exchange data showed.

Last week, Adani Power said it has signed definitive agreements with Jaiprakash Associates Limited (JAL) to acquire a 24% stake in Jaiprakash Power Ventures Limited (JPVL) along with the 180 MW Churk thermal power plant in Uttar Pradesh under the NCLT-approved resolution plan for JAL.

The company said it has entered into a Share Purchase Agreement to acquire JAL’s 24% stake in JPVL for nearly Rs 2,993.6 crore. In addition, it has signed a Business Transfer Agreement to acquire the Churk thermal power plant and associated assets, including JAL’s 11.49% stake in Prayagraj Power Generation Company Limited, for Rs 1,200 crore.

According to Adani Power, the acquisitions will strengthen its generation portfolio and expand its footprint in the thermal power sector, while also providing strategic exposure to JPVL’s diversified energy and mining businesses. The transaction is part of the broader Adani Group-led resolution plan for debt-laden JAL and is aligned with Adani Power’s core power generation business.

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Adani Power said the acquisitions will be completed through cash consideration and are expected to close on the “Effective Date” under the approved resolution plan, which is scheduled to occur within 90 days from the NCLT approval granted on March 17, 2026.
The development comes at a time when power stocks have staged a strong rally. India is currently reeling under heatwave conditions amid the exceptionally strong El Niño year. In this background, power demand soared, boosting the power stocks. Adani Power shares were no exception. The stock jumped around 3% on Wednesday to hit a fresh 52-week high of Rs 252 apiece on NSE. The stock surged over 13% in one week and delivered 126% returns over one year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Abercrombie & Fitch posted mixed first-quarter results on Wednesday and weaker-than-expected guidance after the conflict in the Middle East “directly impacted” sales, the company said. 

Despite those challenges, shares jumped about 13% in morning trading as the company easily topped Wall Street’s earnings estimates.

Sales in Abercrombie’s Europe, Middle East and Africa region fell 10% during the quarter, driven by a slowdown in demand at the brand’s Hollister banner that came as the conflict ramped up, finance chief Robert Ball said on a call with analysts. 

Overall, it reduced first-quarter total company net sales growth by more than 0.5 percentage points relative to the retailer’s outlook, he said. 

“We’re focused on what we can control, including our inventory levels and marketing investments, ensuring we can respond to what’s happening in real-time,” CEO Fran Horowitz added on the call. “Despite these EMEA headwinds, we expect total sales growth for the second quarter, along with full-year 2026, which would be our fourth consecutive year of net sales growth.” 

In the current quarter, Abercrombie expects earnings per share to be between $1.80 and $2, well behind estimates of $2.54, according to LSEG. 

Though the company’s outlook for the current quarter was worth than analysts expected, it reaffirmed its full-year guidance. Abercrombie anticipates net sales will rise 3% to 5% for the fiscal year, with earnings per share of $10.20 to $11.

Despite the slowdown in EMEA, which represents about 15% of total company sales, Abercrombie’s companywide sales climbed 2%. Still, that growth didn’t come from organic consumer demand and was instead driven by new store openings and favorable foreign exchange rates, Ball said.

Here’s how the apparel company did in its first fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

• Earnings per share: $1.47 vs. $1.28 expected
• Revenue: $1.11 billion vs. $1.12 billion expected

The company’s reported net income for the three-month period that ended May 2 was $67.13 million, or $1.47 per share, compared with $80.41 million, or $1.59 per share, a year earlier.  

Sales rose to $1.11 billion, up about 2% from $1.10 billion a year earlier. 

When asked about its current quarter outlook, and what it expects to change in the back half of the year, Ball mentioned easier comparisons to last year’s results and lower marketing spending, among other facors, not an expected improvement in demand. 

“It is a balanced story here. Tariffs and freight, by the time we get to year-end, will be just slight headwinds year-over-year,” Ball explained. Aside from the challenges its seeing in the Middle East and the EMEA region, the company is seeing modest growth in average unit retail, which is funding the investments its making and keeping it in line with a 12% to 12.5% operating margin, Ball said.

Unlike many of its peers, Abercrombie is factoring in recent reductions in tariff rates after the U.S. Supreme Court ruled President Donald Trump’s so-called reciprocal tariffs are illegal, which helped its financial outlook. 

It’s now expecting tariffs to impact profitability by 0.2 percentage points in fiscal 2026, compared to previous expectations of around 0.7 percentage points. It said it has applied for a tariff refund of around $100 million but didn’t factor that potential influx into its outlook. 

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