Category: 3. Business

Riyadh, Kingdom of Saudi Arabia, October 28, 2025- NEOM, the sustainable region taking shape in northwest Saudi Arabia, has signed a strategic memorandum of understanding (MoU) with WuXi AppTec, a leading global pharmaceutical contract research, development and manufacturing organization (CRDMO).

Under the terms of the agreement, a collaborative framework will be established between the two entities to explore the localization of pharmaceutical research, development and manufacturing capabilities in Saudi Arabia. The long-term intention of the collaboration is to create world-class CRDMO facilities at Oxagon, NEOM’s advanced and clean manufacturing city, or other locations in Saudi Arabia.

In support of Saudi Arabia’s economic diversification and innovation strategies, the MoU represents a significant step forward in advancing the Kingdom’s biotechnology ambitions and reflects a mutual commitment to driving long-term growth in pharmaceuticals and healthcare.

By aligning world-class expertise with national goals, the partnership between NEOM and WuXi AppTec aims to create the conditions for advanced manufacturing and sectoral growth that will serve both regional and global markets. The agreement leverages NEOM’s advanced and clean manufacturing facilities at Oxagon, while also reinforcing WuXi’s world-class capabilities to build a thriving biotech ecosystem.

At its core, the partnership represents a meeting of minds, with WuXi AppTec a global leader with decades of experience in enabling biopharmaceutical innovation, and NEOM an essential element of Saudi Vision 2030 and key enabler of its bold National Biotech Strategy. Working together, the two parties aim to redefine business and chart new pathways that not only serve the Kingdom’s long-term targets but also set a new benchmark for global collaboration in pharmaceutical innovation.

DENVER–(BUSINESS WIRE)– VF Corporation (NYSE: VFC) today reported financial results for its second quarter (Q2’26) ended September 27, 2025, and the Company’s Board of Directors authorized a quarterly per share dividend of $0.09. These financial results are also reflected in a presentation available on the Investor Relations website at ir.vfc.com.

Bracken Darrell, President and CEO, said: “In Q2 we made further progress on our turnaround plan. We delivered broad-based growth for The North Face^® and Timberland^®, while continuing to moderate declines in Vans^®. We also announced the pending sale of Dickies^® for $600 million, enhancing our capacity to invest in the portfolio and drive shareholder returns. Looking ahead, we will continue to focus on generating value across our brands and returning the company to sustainable and profitable growth.”

Q2’26 Financial Review

• Revenue of $2.8B, +2% vs. LY or (1%) C$

  • Revenue (1%) C$ vs. LY, above guidance of (4%) to (2%) C$ vs. LY
  • Q2’26 revenue reflects better-than-expected back-to-school results and early Wholesale demand
  • The North Face^® and Timberland^® grew +6% and +7% vs. LY, respectively, or both +4% C$
  • Vans^® revenue sequentially improved to (9%) vs. LY or (11%) C$

• Adjusted operating income and margin up vs. LY

  • Operating income of $313M; adjusted operating income of $330M, meaningfully above guidance of $260M to $290M and +5% vs. LY or +1% C$
  • Operating margin of 11.2%, +130bps vs. LY, and adjusted operating margin of 11.8%, +40bps vs. LY
  • Gross margin of 52.2%, flat vs. LY
  • SG&A dollars (1%) vs. LY, adjusted SG&A dollars +1% vs. LY or (1%) C$

• EPS of $0.48, adjusted EPS of $0.52

  • Earnings per share (EPS) of $0.48 vs. LY of $0.52, adjusted EPS of $0.52 vs. LY of $0.60
  • Net interest expense of $46M; effective tax rate of 29%

• Net debt down $1.5B or (21%) vs. LY

  • Net debt excluding lease liabilities down $1.5B or (27%) vs. LY

Q3’26 and FY’26 Financial Outlook¹

• Q3’26:

  • Revenue (3%) to (1%) C$ vs. LY
  • Adjusted operating income of $275M to $305M

• FY’26:

  • Free cash flow up vs. LY, includes known and anticipated tariff impacts

    • Adjusted operating income up vs. LY
    • Operating cash flow up vs. LY

Webcast Information

VF management will host its second quarter Fiscal 2026 conference call beginning at approximately 8:00 a.m. ET today. The conference call will be broadcast live via the Internet, accessible at ir.vfc.com. For those unable to listen to the live broadcast, an archived version will be available at the same location.

Dividend Declared

VF’s Board of Directors declared a quarterly dividend of $0.09 per share. This dividend will be payable on December 18, 2025, to shareholders of record at the close of business on December 10, 2025.

About VF

VF Corporation is a portfolio of leading outdoor, active and workwear brands, including The North Face^®, Vans^®, Timberland^® and Dickies^®. VF is committed to providing consumers with innovative products that are rooted in performance and elevated design, while delivering sustainable and long-term value for its employees, communities, and shareholders. For more information, please visit vfc.com.

Financial Presentation Disclosure

All per share amounts are presented on a diluted basis. This release refers to “reported” (R$) and “constant dollar” (C$) or “constant currency” amounts, terms that are described under the heading below “Constant Currency – Excluding the Impact of Foreign Currency.” Unless otherwise noted, “reported” and “constant dollar” or “constant currency” amounts are the same, and amounts will be as “reported” unless otherwise specified. This release also refers to “continuing” and “discontinued” operations amounts, which are concepts described under the heading “Discontinued Operations – Supreme.” Unless otherwise noted, results presented are based on continuing operations. This release also refers to “adjusted” amounts, a term that is described under the heading “Adjusted Amounts – Excluding Reinvent and Transaction and Deal Related Activities”. Unless otherwise noted, “reported” and “adjusted” amounts are the same. VF operates and reports using a 52/53 week fiscal year ending on the Saturday closest to March 31 of each year. This release refers to VF’s second quarter of Fiscal 2026 as Q2’26, and similarly Q2’25 denotes VF’s second quarter of Fiscal 2025, etc. VF defines “free cash flow” as cash flow from continuing operations less capital expenditures and software purchases and defines “net debt” as long-term debt, the current portion of long-term debt, short-term borrowings, and operating lease liabilities, less cash and cash equivalents per VF’s consolidated balance sheet.

Change in Reportable Segments

VF realigned its reportable segments in the first quarter of Fiscal 2026. VF’s updated reportable segments are Outdoor and Active. We have included an “All Other” category for the remaining operating segments that do not meet the quantitative threshold to be disclosed as a separate reportable segment. VF’s financial results for Q2’26 and Q2’25 in this presentation reflect the new segments.

Dickies Held-for-Sale

On September 15, 2025, VF entered into a definitive agreement with Bluestar Alliance LLC to sell the Dickies^® brand business (“Dickies”). The Company determined that the associated assets and liabilities met the held-for-sale accounting criteria and they were classified accordingly in the September 2025 Consolidated Balance Sheet.

Discontinued Operations – Supreme

On July 16, 2024, VF entered into a definitive Stock and Asset Purchase Agreement with EssilorLuxottica S.A. to sell the Supreme^® brand business (“Supreme”). On October 1, 2024, VF completed the sale of Supreme. Accordingly, the company has reported the related held-for-sale assets and liabilities as assets and liabilities of discontinued operations and included the operating results and cash flows of the business in discontinued operations for all periods presented, through the date of sale.

Constant Currency – Excluding the Impact of Foreign Currency

This release refers to “reported” amounts in accordance with U.S. generally accepted accounting principles (“GAAP”), which include translation and transactional impacts from foreign currency exchange rates. This release also refers to both “constant dollar” and “constant currency” amounts, which exclude the impact of translating foreign currencies into U.S. dollars. Reconciliations of GAAP measures to constant currency amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management’s view of why this information is useful to investors.

Adjusted Amounts – Excluding Reinvent and Transaction and Deal Related Activities

The adjusted amounts in this release exclude costs related to Reinvent, VF’s transformation program. Costs, including restructuring charges and project-related costs, were approximately $15 million in the second quarter of Fiscal 2026 and $46 million in the first six months of Fiscal 2026.

The adjusted amounts in this release exclude transaction and deal related activities associated with the pending divestiture of Dickies. Total transaction and deal related activities include costs of approximately $2 million in the second quarter and first six months of Fiscal 2026.

Combined, the above items negatively impacted loss per share by $0.04 during the second quarter of Fiscal 2026 and $0.09 during the first six months of Fiscal 2026. All adjusted amounts referenced herein exclude the effects of these amounts.

Reconciliations of measures calculated in accordance with GAAP to adjusted amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management’s view of why this information is useful to investors. The company does not provide a reconciliation of forward-looking measures where the company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items contained in the GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the company’s control or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information.

Forward-looking Statements

Certain statements included in this release are “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on VF’s expectations and beliefs concerning future events impacting VF and therefore involve several risks and uncertainties. Words such as “will,” “anticipate,” “believe,” “estimate,” “expect,” “should,” and “may” and other words and terms of similar meaning or use of future dates may be used to identify forward-looking statements; however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding VF’s plans, objectives, projections and expectations relating to VF’s operations or financial performance, and assumptions related thereto, are forward-looking statements. Forward-looking statements are not guarantees, and actual results could differ materially from those expressed or implied in the forward-looking statements. VF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of VF to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the level of consumer demand for apparel, footwear and accessories; disruption to VF’s distribution system; changes in global economic conditions and the financial strength of VF’s consumers and customers, including as a result of current inflationary pressures; fluctuations in the price, availability and quality of raw materials and finished products, including as a result of tariffs; disruption and volatility in the global capital and credit markets; VF’s response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; VF’s ability to maintain the image, health and equity of its brands, including through investment in brand building and product innovation; intense competition from online retailers and other direct-to-consumer business risks; increasing pressure on margins; retail industry changes and challenges; VF’s ability to execute its Reinvent transformation program, “The VF Way” and other business priorities, including measures to streamline and right-size its cost base and strengthen the balance sheet while reducing leverage; VF’s ability to successfully establish a global commercial organization, and identify and capture efficiencies in its business model; any inability of VF or third parties on which it relies, to maintain the strength and security of information technology systems; the fact that VF’s facilities and systems, and those of third parties on which it relies, are frequent targets of cyberattacks of varying levels of severity, and may in the future be vulnerable to such attacks, and any inability or failure by VF or such third parties to anticipate or detect data or information security breaches or other cyberattacks, could result in data or financial loss, reputational harm, business disruption, damage to VF’s relationships with customers, consumers, employees and third parties on which it relies, litigation, regulatory investigations, enforcement actions or other negative impacts; any inability by VF or third parties on which it relies to properly collect, use, manage and secure business, consumer and employee data and comply with privacy and security regulations; VF’s ability to adopt new technologies, including artificial intelligence, in a competitive and responsible manner; foreign currency fluctuations; stability of VF’s vendors’ manufacturing facilities and VF’s ability to establish and maintain effective supply chain capabilities; continued use by VF’s suppliers of ethical business practices; VF’s ability to accurately forecast demand for products; actions of activist and other shareholders; VF’s ability to recruit, develop or retain key executive or employee talent or successfully transition executives; continuity of members of VF’s management; changes in the availability and cost of labor; VF’s ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by VF’s licensees and distributors of the value of VF’s brands; VF’s ability to execute acquisitions and dispositions, integrate acquisitions and manage its brand portfolio, including the proposed sale of the Dickies^® brand; whether and when the required regulatory approvals for the proposed sale of the Dickies^® brand will be obtained, whether and when the closing conditions will be satisfied and whether and when the proposed sale of the Dickies^® brand will close, if at all; VF’s ability to execute, and realize benefits, successfully, or at all, from the proposed sale of the Dickies^® brand; business resiliency in response to natural or man-made economic, public health, cyber, political or environmental disruptions, including any potential effects from changes in tariffs and international trade policy, and the U.S. federal government shutdown; changes in tax laws and additional tax liabilities; legal, regulatory, political, economic, and geopolitical risks, including those related to the current conflicts in Europe, the Middle East and Asia and tensions between the U.S. and China; changes to laws and regulations; adverse or unexpected weather conditions, including any potential effects from climate change; VF’s indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent VF from fulfilling its financial obligations; VF’s ability to pay and declare dividends or repurchase its stock in the future; climate change and increased focus on environmental, social and governance issues; VF’s ability to execute on its sustainability strategy and achieve its sustainability-related goals and targets; risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis; and tax risks associated with the spin-off of the Jeanswear business completed in 2019. More information on potential factors that could affect VF’s financial results is included from time to time in VF’s public reports filed with the SEC, including VF’s Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.

Notes:

^(a) Costs related to Reinvent, VF’s transformation program, including restructuring charges and project-related costs, were $15.5 million and $46.3 million in the three and six months ended September 2025, respectively. These costs related primarily to severance and employee-related benefits and expenses related to the engagement of a consulting firm to support VF’s transformation journey. VF entered into a contract with a consulting firm during the second quarter of Fiscal 2025, with services under the contract expected to be substantially complete by the third quarter of Fiscal 2026. In addition to payment for services, the contract includes contingent fees tied to increases in VF’s stock price through June 2027. Expenses related to the contract, including contingent fees, were $9.2 million and $17.2 million in the three and six months ended September 2025, respectively. Reinvent resulted in a net tax benefit of $3.5 million and $10.3 million in the three and six months ended September 2025, respectively.

The Company incurred $211.7 million in total restructuring charges in connection with Reinvent. Substantially all restructuring actions were completed at the end of the first quarter of Fiscal 2026. Total fees associated with the contract with the consulting firm could be up to $146.0 million, with $75.0 million of the fees contingent on increases to VF’s stock price through June 2027.

^(b) Transaction and deal related activities reflect activities associated with the pending divestiture of Dickies, which totaled $2.0 million for the three and six months ended September 2025. The transaction and deal related activities resulted in a net tax benefit of $0.5 million in the three and six months ended September 2025.

^(c) Amounts shown in the table have been calculated using unrounded numbers. The diluted earnings per share impacts were calculated using 393,986,000 and 393,043,000 weighted average common shares for the three and six months ended September 2025, respectively.

Non-GAAP Financial Information

The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of Reinvent and transaction and deal related activities. The adjusted presentation provides non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding VF’s underlying business trends and the performance of VF’s ongoing operations and are useful for period-over-period comparisons of such operations.

Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, VF’s operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies.

Notes:

^(a) Costs related to Reinvent, VF’s transformation program, including restructuring charges and project-related costs, were $41.3 million and $59.1 million in the three and six months ended September 2024, respectively. These costs related primarily to severance and employee-related benefits and expenses related to the engagement of a consulting firm to support VF’s transformation journey. VF entered into a contract with a consulting firm during the three months ended September 2024, with services under the contract expected to be substantially complete by the third quarter of Fiscal 2026. In addition to payment for services, the contract includes contingent fees tied to increases in VF’s stock price through June 2027. Expenses related to the contract, including contingent fees, were $28.1 million and $31.1 million in the three and six months ended September 2024, respectively. Reinvent resulted in a net tax benefit of $10.5 million and $14.7 million in the three and six months ended September 2024, respectively.

^(b) Transaction and deal related activities reflect activities associated with the review of strategic alternatives for the Global Packs business, consisting of the Kipling^®, Eastpak^® and JanSport^® brands, which totaled $0.5 million for the six months ended September 2024. The transaction and deal related activities resulted in a net tax benefit of $0.1 million in the six months ended September 2024.

^(c) Amounts shown in the table have been calculated using unrounded numbers. The diluted earnings per share impacts were calculated using 390,945,000 and 390,198,000 weighted average common shares for the three and six months ended September 2024, respectively.

Non-GAAP Financial Information

The financial information above has been presented on a GAAP basis and on an adjusted basis, which excludes the impact of Reinvent and transaction and deal related activities. The adjusted presentation provides non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding VF’s underlying business trends and the performance of VF’s ongoing operations and are useful for period-over-period comparisons of such operations.

Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, VF’s operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies.

Constant Currency Financial Information

VF is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by VF from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.

To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).

These constant currency performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.

Constant Currency Financial Information

VF is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by VF from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.

To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).

These constant currency performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251028828000/en/

Investor Contact:
Allegra Perry
ir@vfc.com

Media Contact:
Colin Wheeler
corporate_communications@vfc.com

Source: VF Corporation

Released October 28, 2025

By Jules Rimmer

Wood wants to disabuse investors of the notion that innovation and interest rates are inversely correlated.

Cathie Wood says interest rate hikes will take the steam out of the market.

Cathie Wood is a firm believer that the economy is on the precipice of a technological revolution. At some point next year, though, she warns, interest rates will reverse and that is going to prompt a “shudder throughout the market” and a reality check on AI valuations.

As the chief executive officer of Ark Invest, the $20 billion investment management firm based St. Petersburg, Florida, Wood has been a high-profile disciple of disruptive technologies since she established her company just over a decade ago. Interviewed by CNBC while attending the Saudi Future Investment Initiative conference in Riyadh, Wood does not think there’s an AI bubble and reckons in the long term, valuations will be justified.

She does, however, foresee a problem at some stage next year when the narrative around interest rates shifts from them falling to rising.

That’s considerably different than market expectations the Fed’s interest rates will be in a range between 2.75% and 3% at the end of next year.

Wood wants to check the misconception that “innovation and interest rates are inversely correlated.” “That is not true over history,” she says.

For Wood, though, whose signature exchange-traded fund, ARK Innovation ETF ARKK , has rallied about 58% so far in 2025, the increase in rates “will come for good reasons” owing to better growth. Wood paid tribute to the Trump administration’s initiatives in the technology sphere with the crypto and AI czar, boosting sentiment and innovation.

She also applauded the One Big Beautiful Bill Act for its success in encouraging deregulation, as well as the tax cuts which she thinks will see the overall effective tax rate for American corporates fall to approximately 10%. Specific changes in accounting, allowing for much more rapid depreciation, will boost innovation in the tech sector even further.

Wood is most enthusiastic about plays on robotics, AI, energy storage, blockchain technology and multiomic sequencing in healthcare, a means of gaining a more comprehensive understanding of complex biology in health and disease using genomics, proteomics and so on. She does caution investors that larger corporations will take time to adopt and incorporate AI operationally within their organizations.

In the past week or so, ARK Invest ETFs made made significant divestments in Palantir (PLTR), Shopify (SHOP) and Advanced Micro Devices (AMD) while making purchases in China tech stocks like Alibaba (BABA) (recently making ambitious investments into AI) and Baidu (BIDU).

-Jules Rimmer

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

  (END) Dow Jones Newswires

  10-28-25 0544ET
Copyright (c) 2025 Dow Jones & Company, Inc.

We recently published 10 Buzzing News to Watch as Investors Look for Best AI Stocks Amid Fed Rate Cuts. NVIDIA Corp (NASDAQ:NVDA) is one of the best AI stocks amid Fed rate cuts.

Gene Munster, Deepwater Asset Management managing partner, recently talked about NVIDIA Corp (NASDAQ:NVDA) CEO Jensen Huang’s latest interview on CNBC and said he was encouraged by the executive’s comments about AI demand and opportunities. Answering a question about concerns related to debt and new deals in the AI space, Munster said companies are not running out of organic capital and investors still believe in the core growth story of AI.

“My sense is we’re not running out of organic capital. I think that, yes, this debt piece is something that’s new. But just to give a sense, at Deep Water, we invest in both public and private companies and invested recently in this OpenAI tender offer. That was incredibly difficult—the amount of demand outstripped the supply by probably a 2x factor. X goes and raises. I mean, nice endorsement that Jensen gave to Elon in the interview, and they’re going to be able to raise. I think that the capital is ultimately there.

Nvidia owns about 90% of the GPU market, which is expected to reach $3 to $4 trillion by 2030, according to Jensen Huang. McKinsey sees data center CapEx hitting $6.7 trillion with no slowdown in sight in the short term. Nvidia’s next-generation GPU series Rubin is coming in 2026, and the company also has a software edge in AI computing with its CUDA platform, which is now the de facto standard for AI programming.

Nvidia’s Hopper Infrastructure and now Blackwell form the core of AI infrastructure for LLM training and inference. But Nvidia’s growth is slowing compared to previous quarters amid competition and capex spending limitations from major companies. In the recently reported quarter, Nvidia’s annual revenue growth came in at 56%, compared with nearly 100% YoY growth in the past.

Mar Vista U.S. Quality Premier Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its third quarter 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) continues to benefit from the AI infrastructure build-out as hyperscale technology companies race toward artificial general intelligence. Demand for the company’s next-generation Blackwell platform remains strong, driven by the increasing complexity of large language models and the rise of reasoning-based applications. As CEO Jensen Huang has highlighted, reasoning tasks can require up to ten times more compute power than training a conventional large language model. With the AI market still in the early stages of a multi-year investment cycle, NVIDIA is well positioned to capture substantial value as the industry standard in accelerated computing.”

28 October 2025

Compared with August 2025:

• median consumer perceptions of inflation over the previous 12 months remained unchanged, as did median expectations for inflation three years ahead and five years ahead, while median inflation expectations for the next 12 months decreased slightly;
• expectations for nominal income growth over the next 12 months were unchanged, while expectations for spending growth over the next 12 months increased;
• expectations for economic growth over the next 12 months and the expected unemployment rate in 12 months’ time were both unchanged;
• expectations for growth in the price of homes over the next 12 months increased, as did expectations for mortgage interest rates 12 months ahead.

Inflation

In September, the median rate of perceived inflation over the previous 12 months remained unchanged at 3.1% for the eighth consecutive month. Median expectations for inflation over the next 12 months decreased to 2.7%, from 2.8% in August. Expectations for inflation three years ahead were unchanged at 2.5%, as were those for five years ahead, which remained unchanged at 2.2%. Uncertainty about inflation expectations over the next 12 months remained unchanged in September. Respondents in lower income quintiles continued to report on average slightly higher inflation perceptions and short-horizon expectations than those in higher income quintiles, a trend observed since 2023. However, the broad evolution of inflation perceptions and expectations remained relatively closely aligned across income groups. Younger respondents (aged 18-34) continued to report lower inflation perceptions and expectations than older respondents (aged 35-54 and 55-70).

Inflation results

Income and consumption

Consumers’ nominal income growth expectations over the next 12 months remained at 1.1% in September, unchanged from August. Perceived nominal spending growth over the previous 12 months decreased to 4.9%, from 5.0% in August. Expected nominal spending growth over the next 12 months increased to 3.5% in September, from 3.3% in August, with respondents in the lowest three income quintiles showing slightly higher spending growth expectations than those in the highest two quintiles.

Income and consumption results

Economic growth and labour market

Economic growth expectations for the next 12 months remained stable in September at -1.2%. Expectations for the unemployment rate 12 months ahead also remained stable, standing at 10.7% in September. As in previous months, lower-income households expected the highest unemployment rate 12 months ahead (12.7%), while higher-income households expected the lowest rate (9.4%). Consumers continued to expect the future unemployment rate to be only slightly higher than the perceived current unemployment rate (10.2%), suggesting a broadly stable labour market outlook.

Economic growth and labour market results

Housing and credit access

Consumers expected the price of their home to increase by 3.5% over the next 12 months, up from 3.4% in August. Compared with previous months, home price growth expectations were more aligned across income categories, standing at 3.5% and 3.4% for the lowest and highest income quintiles respectively. Expectations for mortgage interest rates over the next 12 months increased to 4.6%, from 4.5% in August. As in previous months, lower-income households expected the highest mortgage interest rates 12 months ahead (5.3%), while higher-income households expected the lowest rates (4.0%). The net percentage of households reporting a tightening (relative to those reporting an easing) of access to credit over the previous 12 months declined marginally, while the net percentage of households expecting tighter credit conditions over the next 12 months increased for the third consecutive month.

Housing and credit access results

The microdata underlying the aggregate results are available in the Data and methodological information section of the Consumer Expectations Survey (CES) web page.

The release of the CES results for October is scheduled for 28 November 2025.

For media queries, please contact: Benoit Deeg, tel.: +49 172 1683704.

Notes

• Unless otherwise indicated, the statistics presented in this press release refer to the 2% winsorised mean. For further details, see ECB Consumer Expectations Survey – Guide to the computation of aggregate statistics.
• The CES is a monthly online survey of, currently, around 19,000 adult consumers (i.e. aged 18 or over) from 11 euro area countries: Belgium, Germany, Ireland, Greece, Spain, France, Italy, the Netherlands, Austria, Portugal and Finland. The main aggregate results of the CES are published on the ECB’s website every month. The results are used for policy analysis and complement other data sources used by the ECB.
• Further information about the survey and the data collected is available on the CES web page. Detailed information can also be found in the following two publications: Bańkowska, K. et al., “ECB Consumer Expectations Survey: an overview and first evaluation”, Occasional Paper Series, No 287, ECB, Frankfurt am Main, December 2021; and Georgarakos, D. and Kenny, G., “Household spending and fiscal support during the COVID-19 pandemic: Insights from a new consumer survey”, Journal of Monetary Economics, Vol. 129, Supplement, July 2022, pp. S1-S14.
• The survey results do not represent the views of the ECB’s decision-making bodies or staff.