Key Takeaways
- A US missile strike targeted the Piranshahr region in northwest Iran, escalating regional tensions following a brief pause in hostilities.
- Boston Scientific (BSX) surpassed Q2 expectations with an adjusted EPS of $0.86, though the company lowered its full-year earnings guidance.
- Rheinmetall (RHM) reported a massive 69% surge in Q2 revenue, driven by a record defense backlog that has now surpassed the €80 billion mark.
- Intesa Sanpaolo (ISP) raised its full-year net income outlook to over €10 billion after posting a stronger-than-expected €2.8 billion profit in the second quarter.
US Missile Strike Hits Northwest Iran
Geopolitical tensions spiked on Wednesday following reports from Iranian state media that a US missile strike targeted an area near Piranshahr in the West Azerbaijan province. The strike, which hit near the Iran-Iraq border, follows a period of intense military exchanges between Washington and Tehran that had briefly paused for diplomatic mediation.
While Iranian officials reported no immediate casualties, the attack targeted what was described as an uninhabited area, though several vehicles were reportedly damaged. This development comes amid a broader regional conflict where the US military recently intercepted multiple ballistic missiles launched by Iran toward American forces in the Middle East.
Boston Scientific Beats Q2 Estimates, Adjusts Guidance
Boston Scientific (BSX) announced second-quarter financial results that topped Wall Street estimates on both the top and bottom lines. The medical device maker reported adjusted EPS of $0.86, beating the analyst consensus of $0.83, on net sales of $5.44 billion.
Despite the quarterly beat, the company issued a cautious outlook for the remainder of the year. Boston Scientific now sees full-year adjusted EPS between $3.28 and $3.32, a downward revision from its previous forecast of $3.34 to $3.41. The company expects third-quarter adjusted EPS to land between $0.80 and $0.82, slightly below the $0.84 analysts had anticipated.
Rheinmetall Defense Backlog Hits Record €80 Billion
German defense giant Rheinmetall (RHM) released preliminary Q2 2026 results showing a 69% year-over-year increase in revenue to €3.29 billion. The company’s operating profit of €562 million significantly outperformed the estimated €409.7 million, fueled by high demand for ammunition and combat vehicles.
The company’s order backlog has surged past €80 billion, providing long-term revenue visibility amid rising European defense budgets. However, Rheinmetall noted that operating free cash flow (OFCF) was significantly negative for the quarter due to the timing of advance payments and increased inventories for future deliveries.
Intesa Sanpaolo Lifts Profit Outlook on Strong Earnings
Italy’s largest bank, Intesa Sanpaolo (ISP), delivered a robust second quarter with net income reaching €2.79 billion, well ahead of the €2.52 billion projected by analysts. The bank’s performance was bolstered by net interest income of €3.84 billion and an improved cost-to-income ratio of 36%.
Following the strong results, Intesa raised its full-year 2026 net income guidance to above €10 billion, up from its previous "about €10 billion" target. The bank continues to maintain a solid capital position with a Common Equity Tier 1 (CET1) ratio of 13.1%, even as it navigates a major takeover bid for Monte dei Paschi di Siena.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.