Broadridge Financial Solutions, Inc.

(New York Stock Exchange)
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Very Bearish -75

Stocks That Failed The Core Earnings Test In Q2 2026

AI-generated analysis

📉 Boeing (BA) was removed from the Bloomberg New Constructs Core Earnings Leaders Index due to overstated GAAP earnings and negative Core Earnings.

💸 Boeing's Core Earnings for 2025 are reported at -$2.6 billion, contrasting with a GAAP net income of $1.9 billion driven by non-operating items.

📊 The company received an Unattractive Stock Rating based on a 0% ROIC, negative economic book value, and an implausible market-implied growth period exceeding 100 years.

🔽 Broadridge Financial Solutions (BR) was also dropped from the index because its GAAP earnings now exceed its Core Earnings, indicating overstated profitability.

⚠️ The article warns that a single bad stock can ruin an entire portfolio, emphasizing the need for proper fundamental analysis.

🤖 Bloomberg New Constructs utilizes AI-driven Robo-Analyst technology to help investors make decisions based on superior fundamental data and stock ratings.

📝 The author discloses no stock positions or plans to initiate positions in the mentioned companies within the next 72 hours.

⚖️ Seeking Alpha states that past performance does not guarantee future results and that the article expresses the author's own opinions.

🏛️ Seeking Alpha clarifies it is not a licensed securities dealer, broker, or investment adviser, and its analysts are third-party authors.

Risk Factors
  • Boeing (BA) was removed from the Bloomberg New Constructs Core Earnings Leaders Index due to overstated GAAP earnings and negative Core Earnings.
  • Boeing's Core Earnings for 2025 are -$2.6B, significantly lower than its reported GAAP net income of $1.9B, indicating substantial earnings distortion from non-operating items.
  • The Boeing Company earns an Unattractive Stock Rating with a 0% ROIC and negative economic book value.
  • Boeing's market-implied growth period exceeds 100 years, suggesting the market does not expect sustainable future growth.
  • Broadridge Financial Solutions (BR) was also dropped from the index because its GAAP earnings now exceed Core Earnings, reflecting overstated profitability.
Full Analysis
Seeking Alpha removed Boeing (BA) and Broadridge Financial Solutions (BR) from its Core Earnings Leaders Index in May 2026 due to significant earnings distortions. The index specifically tracks companies with strong core profitability, defined as positive Core Earnings where non-operating items do not artificially inflate reported results. Boeing was excluded because its Q2 2026 data showed $1.9 billion in GAAP net income for 2025, but this figure masks a -$2.6 billion loss in Core Earnings for the same period. The discrepancy highlights substantial negative earnings distortion driven by non-operating items, alongside an Unattractive Stock Rating characterized by zero Return on Invested Capital (ROIC) and negative economic book value. Similarly, Broadridge Financial Solutions was dropped from the index because its GAAP earnings currently exceed its Core Earnings, indicating that its reported profitability is overstated by one-time gains or other non-recurring factors rather than reflecting sustainable operational performance. The inclusion of these specific financial metrics—Core Earnings versus GAAP net income for Boeing and the reversal of earnings quality for Broadridge—drives the decision to delist both stocks from the index, signaling a fundamental decline in their earnings quality according to Bloomberg New Constructs' criteria.