After-hours trading offered a mixed read on the earnings season, as a slate of software and consumer apparel names posted results and updated guidance. Dell Technologies led the moves, surging about 30% following an upgrade to its full-year outlook. The company now sees adjusted earnings per share of $17.90 on revenue of $165 billion to $169 billion, a guide that surpassed the consensus for $13.09 a share on about $142.5 billion in revenue, according to CNBC.
Other names moved in different directions: American Eagle Outfitters dropped about 11% after a first-quarter report showed a 2% decline in comparable sales at the American Eagle banner, with second-quarter guidance that disappointed versus StreetAccount expectations. Gap tumbled about 13% after trimming its annual sales outlook to a growth range of 1% to 2% (from 2% to 3%); first-quarter revenue of $3.50 billion came in just below the $3.52 billion expected, though adjusted earnings of 38 cents beat the 37-cent consensus. Okta advanced roughly 12% after guidance for the current quarter and full year topped FactSet estimates, while NetApp rose about 12% on quarterly and full-year guidance that beat expectations. Autodesk slipped about 5% after first-quarter ex-subscription revenue of $98 million fell short of the $100.4 million StreetAccount estimate, even though the company beat on both revenue and earnings and projected forward results above forecasts. Ambarella edged lower, down around 2%, even as its first-quarter adjusted earnings beat and revenue was roughly in line with consensus.
Among other movers, Asana rose about 3% after projecting full-year revenue of $856 million to $864 million versus a $854 million consensus, with current-quarter revenue guidance also topping expectations. MongoDB gained about 6% after raising full-year guidance for adjusted earnings, revenue and adjusted operating income, and posting a first-quarter beat on all three metrics. PagerDuty jumped about 12% after lifting its full-year earnings guidance to a range of $1.27 to $1.32 per share, above the prior range and ahead of FactSet’s estimate of about $1.26. Elastic fell roughly 9% after guiding for current-quarter adjusted earnings of 57 to 59 cents per share, below the 63-cent StreetAccount forecast, despite a beat on the fiscal fourth quarter for both earnings and revenue. SentinelOne slumped about 17% after issuing a revenue guide for the current quarter of $289 million to $291 million, below the $292 million expected by analysts, with adjusted earnings also missing the consensus.
According to CNBC, the breadth of moves underscored the uneven tone of late-cycle earnings: some software and cloud-related names are lifting on stronger demand signals and better-than-expected guidance, while consumer-focused retailers and cybersecurity names are facing more scrutiny as forecasts come into sharper relief. Data shows that investors are differentiating between growth software franchises with improving visibility and names facing tighter near-term outlooks or more modest growth trajectories. Analysts’ expectations, as captured by data providers cited in the report, varied across the group, contributing to a split tape in extended trading.
Key takeaways
- Price move: Dell Technologies up about 30% in after-hours trading on stronger full-year guidance.
- Catalyst: Higher full-year earnings and revenue targets for Dell; mixed guidance and quarterly results across peers, with several names beating or missing guidance depending on segment.
- Implication: Indicates investor sensitivity to guidance precision and sector divergence within tech and consumer discretionary names; capital allocation plans and demand visibility are now focal points for risk assessment.
What drove the move
Leading the charge, Dell Technologies’ raised full-year targets provided the primary shock to after-hours trading. The company’s revised outlook, anchored by an adjusted earnings per share of $17.90 and revenue of $165 billion to $169 billion, contrasted with consensus expectations of about $13.09 per share on roughly $142.5 billion in revenue, highlighting a significant lift in profitability and top-line ambition. This recalibration appears to reflect sustained demand for its enterprise offerings and a belief that margins can improve as the year progresses, according to CNBC’s reporting.
Across the rest of the list, several companies posted mixed results or guidance that either exceeded or fell short of expectations. Okta, NetApp, Asana and MongoDB produced gains on stronger guidance or quarters that beat expectations. In contrast, Gap and American Eagle Outfitters faced downward pressure after reporting softer year-to-date momentum and modest revisions to annual outlooks. The quarter-by-quarter variability underscored how investors are weighing sector-specific dynamics—enterprise software and cloud-oriented platforms versus consumer retail—within the broader tech and growth complex.
Market reaction
Trading in the wake of the results painted a two-sided picture. The standout move in Dell had the stock surging in after-hours liquidity, signaling a potential re-rating of the stock on a higher growth and profitability trajectory. Meanwhile, consumer retailers Gap and American Eagle Outfitters saw pronounced declines tied to tepid sales trajectories and cautious guidance. Software names that offered beats or above-consensus guidance, like Okta, NetApp, Asana, MongoDB and PagerDuty, benefited from the broadly constructive stance on enterprise software demand, while Elastic and SentinelOne faced softer near-term outlooks that weighed on their shares.
These dynamics reflect a broader pattern observed by market observers: investors are rewarding resilience in enterprise tech and cloud-based growth drivers, while remaining wary of consumer-facing names that contend with inflation-sensitive demand and normalization after a period of outsized growth. The divergence points to ongoing rotations within the market as investors recalibrate risk around growth durability, pricing power and margins in a rising-rate environment or shifting macro backdrop.
What analysts are saying
Analysts’ expectations ahead of results provided a mixed backdrop for the group. Some names exceeded Street expectations, particularly on forward-looking guidance, while others missed on near-term revenue or earnings metrics. The consensus tone suggested that investors are placing greater emphasis on guidance visibility and the ability of management to translate current demand into sustainable profitability. The mix of outcomes emphasizes a continued emphasis on profitability levers, product diversification and effective cost management as key differentiators in the software, cloud and tech-adjacent spaces.
Bigger picture
Taken together, the post-earnings moves reflect a rotation within technology equities as macro considerations—rates, inflation, and potential policy shifts—interact with company-specific fundamentals. The stronger guidance from a hardware/software blend like Dell points to a remaining appetite for enterprise IT budgets, even as consumer-facing retailers face ongoing demand normalization. The breadth of reactions also aligns with a market that is increasingly differentiating between growth narratives with durable customer demand and those facing more volatile end-market dynamics. For investors, the key question remains: which segments can sustain elevated earnings power amid a cautious macro backdrop and what the trajectory of inflation and rates implies for enterprise spend in the medium term.
What to watch next: upcoming earnings releases and guidance from its peers, continued sensitivity to enterprise tech demand trends, and any incremental color on gross margin progression and operating leverage. Investors will also be focused on how these dynamics interact with potential shifts in consumer spending patterns as the quarter unfolds.
CNBC’s Darla Mercado contributed reporting.
