Introducing Valuation Models! 
Some of the biggest investing returns can happen when companies bounce back from slow periods.
Earnings rebounds can signal a major turning point for a business, whether it’s due to cost-cutting, a leadership change, or a shifting business model.
In this article, we’re looking at 10 companies that analysts expect will see earnings turnaround in 2026 or are expected to see significant continued momentum in existing earnings growth in 2026.
These stocks may be off the radar for now, but that could change fast if profits start to climb.
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Here are a few of our favorite stocks from this list:
Warner Bros. Discovery (WBD)
- Market Cap: $22 billion
- Industry: Entertainment
- Analyst Upside: 38%
- P/E Ratio: -374
Company Overview: Warner Bros. Discovery (WBD) is a global media and entertainment company formed in 2022 from the merger of WarnerMedia and Discovery, Inc. It owns major brands like HBO, Max, CNN, TNT Sports, Discovery Channel, and DC Studios.
Business Strategy: WBD earns revenue through streaming, content licensing, and advertising-supported networks. To improve its strategic focus and long-term value, the company is restructuring into two divisions, Global Linear Networks and Streaming & Studios.
Why earnings are expected to improve:
- Corporate restructuring: WBD is splitting into two focused divisions: Global Linear Networks and Streaming & Studios. This is expected to improve efficiency and sharpen strategic execution.
- Streaming growth: The company is investing heavily in its Max platform and content production, which could drive subscriber growth and higher-margin revenue.
- Debt reduction: Ongoing efforts to pay down debt and improve free cash flow may reduce interest expenses and boost overall profitability.
Peloton Interactive (PTON)
- Market Cap: $2 billion
- Industry: Leisure Products
- Analyst Upside: 24%
- P/E Ratio: -80
Company Overview: Peloton Interactive is a fitness technology company that offers connected exercise equipment and a subscription-based platform for live and on-demand workout classes. Its products include the Peloton Bike, Bike+, Tread, and Row, along with a broad library of fitness content accessible via its app.
Business Strategy: Peloton earns money through equipment sales and monthly subscriptions. To reduce its reliance on hardware sales and drive long-term profitability, the company is shifting its focus toward growing its subscriber base and forming retail partnerships.
Why earnings are expected to improve:
- Leadership Transformation: The appointment of Peter Stern, co-founder of Apple Fitness+, as CEO brings strategic expertise in subscription services, potentially revitalizing growth and profitability.
- Shift to Subscription Model: Peloton’s focus on its high-margin subscription services over hardware sales is expected to enhance recurring revenue streams and improve margins.
- Operational Efficiencies: Cost-cutting measures and strategic partnerships, such as with Costco, aim to broaden market reach and drive earnings growth.
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BrightSpring Health Services (BTSG)
- Market Cap: $4 billion
- Industry: Health Care Providers and Services
- Analyst Upside: 13%
- P/E Ratio: 26
Company Overview: BrightSpring Health Services (BTSG) is a Louisville-based provider of home and community-based healthcare services, with a focus on pharmacy solutions and provider care. The company operates a network of pharmacies and offers services like home health, rehabilitation, and hospice care, primarily serving patients with complex or chronic needs.
Business Strategy: BTSG makes money through its Pharmacy Solutions and Provider Services segments by delivering care in home and community settings. It is expanding its footprint through strategic acquisitions and streamlining operations by divesting non-core businesses to focus on high-growth areas.
Why earnings are expected to improve:
- Robust Revenue Growth: The Pharmacy Solutions segment’s 26% year-over-year increase in Q1 2025 revenue indicates strong demand and positions the company for continued earnings growth.
- Strategic Divestitures: The planned sale of the Community Living business allows BrightSpring to focus on higher-margin segments, potentially boosting profitability.
- Positive Analyst Outlook: Analysts project a 21% earnings increase in 2026, reflecting confidence in the company’s growth trajectory and operational strategies.
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TIKR Takeaway
Stocks with earnings rebounds don’t stay under the radar for long, especially as investors start looking ahead to a stronger 2026.
If a company has solid fundamentals and a clear path to turnaround, getting in early could lead to some pretty great returns down the line.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
