Anthropic IPO Coming, So Are "Mag 7" Q3 Reports
Monday, October 26th, 2026
Just 25 minutes before the U.S. stock market opened on Monday, Anthropic, the company behind Claude AI, announced that it had filed to sell shares to the public for the first time through an Initial Public Offering (IPO). The company is based in San Francisco and will trade on the Nasdaq stock exchange under the symbol ANT. Goldman Sachs (GS) and Morgan Stanley (MS) will manage the IPO. The company's first S-1 filing does not yet state its value or how much money it plans to raise. However, estimates put its market value at around $1.5 trillion, and it could reach as high as $2 trillion.
A key challenge for Anthropic and other companies developing AI agents, such as OpenAI, which is also expected to go public at some point, is how they will manage hundreds of billions of dollars in planned spending on computing infrastructure. Another important question is whether the rapid expansion of AI technology will slow down. The large amount of computing power being used could help the company increase its profit margins significantly, as it has during the years it has remained privately owned.
What to Expect from the Trading Week: PCE, Mag 7 Earnings
News about Anthropic may dominate the headlines this week, but another major event is the Personal Consumption Expenditures (PCE) report, due on Thursday. The Federal Reserve (Fed) has regularly treated this report as its most important measure of inflation. Forecasts suggest that inflation was higher in September. The overall inflation rate is expected to be 3.7%, while the core rate, which leaves out food and energy costs, is expected to be 3.1%. These figures compare with the previous week's reported rates of 3.4% overall and 3.0% for core inflation.
The Fed will also announce its latest interest rate decision on Wednesday afternoon, after a two-day meeting of the Federal Open Market Committee (FOMC). Based on recent economic data, markets expect the Fed to leave rates unchanged at 3.75% to 4.00%. This would follow its quarter-percentage-point increase in September. However, the chances of another quarter-percentage-point increase are much higher at the final FOMC meeting of the year in December.
Three companies from the "Mag 7," the group of seven major technology companies, will also report their earnings this week. Microsoft (MSFT) and Alphabet (GOOGL) will report after the market closes on Wednesday, while Amazon (AMZN) will report on Thursday afternoon. Microsoft and Amazon currently have a Zacks Rank of #3 (Hold), while Alphabet has a Zacks Rank of #2 (Buy). All three companies are expected to report growth in both revenue and earnings. Most of these growth forecasts are in the double digits, with Amazon's expected earnings growth being the exception.
Q3 Earnings at a Glance: VZ, ARLP
Before the stock market opened for the week, Verizon (VZ) reported earnings per share of $1.31, beating estimates by 4 cents. However, its revenue of $34.31 billion was slightly below expectations and 1.43% lower than the Zacks consensus forecast. The telecommunications company raised its guidance for future results, but analysts are considering whether SpaceX (SPCX) might soon compete with Verizon in its market. Verizon shares fell 0.9%, but remained up 9% since the start of the year. For more details on Verizon's earnings, read the full report.
Alliance Resource Partners (ARLP), a company that supplies coal for energy, reported earnings that were 34% higher than expected. Earnings reached $1.10 per share, compared with the forecast of $0.82. Revenue totaled $603.0 million, comfortably above the expected $588.8 million. Coal revenue grew 7.9% from the previous quarter and 13.1% from the same quarter last year. Revenue from oil and gas reached record levels following the company's recent acquisitions in those areas.