Macy's (M) Q2 Earnings and Revenues Beat Estimates

Macy's (M) reported second-quarter 2026 earnings of $0.40 per share, topping the $0.37 consensus estimate, while revenue of $4.87 billion edged past analyst expectations. The department store chain has now beaten earnings estimates for four consecutive quarters.

Despite the beat, M shares have lagged badly in 2026, down 2.5% year-to-date against an 11.6% gain for the S&P 500. The 970-basis-point underperformance underscores investor skepticism about the retailer's turnaround momentum, even as bottom-line results continue to surprise to the upside.

Zacks Investment Research assigned M a Rank #2 (Buy) rating following the release, citing favorable estimate revision trends among sell-side analysts. The firm's methodology weights recent upward revisions as a near-term positive signal, though the rating does not constitute a price target.

Management guidance during the earnings call will be critical to determining whether the stock can convert its four-quarter earnings streak into sustained share-price momentum.