EssilorLuxottica reports 15% increase in first-half adjusted operating profit to €2.75 billion

The company's revenue was €7.7 billion, slightly below analysts' expectations. Second-quarter revenue rose 8.7% at constant exchange rates. This growth was driven by strong demand for AI-enabled glasses and products in its myopia management portfolio.

In other news, shares of Coherent, Lumentum, and Applied Optoelectronics plunged after Alphabet's $45 billion Q2 capex and negative $6 billion free cash flow sparked sector-wide doubts about AI spending. This selloff extended beyond optics, with the iShares Semiconductor ETF down 4%.

Cramer warned that hyperscaler stocks, including Oracle, Amazon, Alphabet, Meta Platforms, and Microsoft, are at risk if AI capex spending hits a wall in 2026. The common thread is leverage to a single assumption: enterprise AI demand keeps compounding fast enough to earn a return on hundreds of billions in silicon.

Kioxia, a Japanese chipmaker, was rescued by the AI boom, with demand booming for flash memory chips used in AI models. The company's shares became 2025's top performer on the global MSCI World Index. Kioxia is expected to report a 30-fold jump in quarterly operating income.

Researchers studied the role of contract-based cooperation in multi-agent systems and found that self-negotiated contracts can improve cooperative outcomes. The DeepLens Diagnosis Agent, a five-stage harnessing pipeline, achieved 60.14% top-1 diagnostic accuracy on the 915-case DiagnosisArena benchmark.

Apple's latest software update includes patches for a record number of bugs, many of which were identified by AI-assisted tools. The company fixed 87 security vulnerabilities in iOS and iPadOS 26.6. Tesla closed a $1.95 billion AI hardware acquisition, but disclosed it only in a footnote of its Q2 2026 financial filing.

Florida's Department of Education proposed rules to provide parental choice in using artificial intelligence tools in schools. Parents will have the option to opt their child in or out of using AI instructional tools. Apple sued OpenAI over trade secret theft, signaling that trade secret disputes may become increasingly important as AI companies move into consumer hardware.

Key Takeaways

EssilorLuxottica's adjusted operating profit rose 15% to €2.75 billion, driven by AI-enabled glasses and myopia management products.
The company's smart-glasses sales nearly doubled in the quarter, thanks to its partnership with Meta.
Shares of Coherent, Lumentum, and Applied Optoelectronics plunged after Alphabet's $45 billion Q2 capex and negative $6 billion free cash flow.
Cramer warns that hyperscaler stocks, including Oracle, Amazon, Alphabet, Meta Platforms, and Microsoft, are at risk if AI capex spending hits a wall in 2026.
Kioxia's shares became 2025's top performer on the global MSCI World Index, with demand booming for flash memory chips used in AI models.
The DeepLens Diagnosis Agent achieved 60.14% top-1 diagnostic accuracy on the 915-case DiagnosisArena benchmark.
Apple's latest software update includes patches for 87 security vulnerabilities, many identified by AI-assisted tools.
Tesla closed a $1.95 billion AI hardware acquisition, but disclosed it only in a footnote of its Q2 2026 financial filing.
Florida's Department of Education proposed rules to provide parental choice in using artificial intelligence tools in schools.
Apple sued OpenAI over trade secret theft, signaling that trade secret disputes may become increasingly important as AI companies move into consumer hardware.

EssilorLuxottica's AI Glasses Boost Profits

EssilorLuxottica, the maker of Ray-Ban glasses, reported a 15% increase in first-half adjusted operating profit to €2.75 billion. The company's smart-glasses sales nearly doubled in the quarter, thanks to its partnership with Meta. AI-enabled glasses and myopia management products drove revenue growth. The company's revenue was €7.7 billion, slightly below analysts' expectations. Second-quarter revenue rose 8.7% at constant exchange rates.

EssilorLuxottica Profit Beats Forecasts

EssilorLuxottica reported a 15% rise in first-half adjusted operating profit, comfortably beating analysts' expectations. The company's revenue growth was driven by strong demand for AI-enabled glasses and products in its myopia management portfolio. Adjusted operating profit was €2.75 billion, compared with a Visible Alpha analyst consensus of €2.46 billion.

EssilorLuxottica's Strong Profit Growth

EssilorLuxottica reported a 15% rise in first-half adjusted operating profit to €2.75 billion. The company's smart-glasses sales nearly doubled in the quarter, driven by its partnership with Meta. Revenue came in at €7.7 billion, slightly below analysts' expectations. The company's core eyewear and eyecare business delivered mid-single-digit growth during the period.

EssilorLuxottica Beats Forecasts

Stocks Plummet on AI Spending Doubts

Shares of Coherent, Lumentum, and Applied Optoelectronics plunged after Alphabet's $45 billion Q2 capex and negative $6 billion free cash flow sparked sector-wide doubts about AI spending. The selloff extended beyond optics, with the iShares Semiconductor ETF down 4%.

5 Hyperscaler Stocks at Risk

Cramer warns that hyperscaler stocks are at risk if AI capex spending hits a wall in 2026. Oracle tops the risk stack, followed by Amazon, Alphabet, Meta Platforms, and Microsoft. The common thread is leverage to a single assumption: enterprise AI demand keeps compounding fast enough to earn a return on hundreds of billions in silicon.

Kioxia's AI-Fueled Comeback

AI Agents Cooperate with Contracts

Researchers studied the role of contract-based cooperation in multi-agent systems. They found that self-negotiated contracts can improve cooperative outcomes beyond what is possible with regular trading.

DeepLens Diagnosis Agent

The DeepLens Diagnosis Agent is a five-stage harnessing pipeline that combines a small medical reasoning model with retrieval-augmented generation. The agent achieved 60.14% top-1 diagnostic accuracy on the 915-case DiagnosisArena benchmark.

Apple's AI Bug Detective

Apple's latest software update includes patches for a record number of bugs, many of which were identified by AI-assisted tools. The company fixed 87 security vulnerabilities in iOS and iPadOS 26.6.

Tesla's AI Hardware Acquisition

Tesla closed a $1.95 billion AI hardware acquisition, but disclosed it only in a footnote of its Q2 2026 financial filing. The company still hasn't named who it bought, how the technology works, or why it's worth nearly $2 billion.

Florida's AI Tool Rules

Apple vs. OpenAI IP Battle

Apple sued OpenAI over trade secret theft, signaling that trade secret disputes may become increasingly important as AI companies move into consumer hardware. OpenAI denied the allegations.

AI Startup Sues Rippling

A New York-based AI startup backed by tech billionaire Vinod Khosla sued Rippling, alleging that Rippling violated its confidentiality agreements and stole trade secrets.