Tech stocks moved in premarket trading as a wave of earnings and guidance updates rippled through the sector. Dell Technologies surged nearly 37% after lifting its full-year outlook, with the company guiding to $17.90 in adjusted earnings per share and revenue in the $165 billion to $169 billion range. Analysts polled by LSEG had been looking for $13.09 per share on $142.5 billion in revenue. The jump helped lift broader computer hardware shares, with Hewlett Packard Enterprise up more than 17%, Super Micro Computer up about 10%, and HP rising roughly 7%.
Not all bits of news were positive. American Eagle Outfitters traded down about 11% after its first-quarter results showed comparable sales at the American Eagle banner down 2%, versus StreetAccount estimates calling for growth of about 3.1%. The retailer also disappointed on its guidance for the second quarter, guiding operating income of $45 million to $50 million against a StreetAccount consensus of about $65.3 million.
Gap shares fell more than 15% after the company trimmed its full-year sales outlook to growth of 1% to 2% from a prior 2% to 3% range. First-quarter revenue came in at $3.50 billion, shy of the $3.52 billion expected by analysts, according to LSEG, though adjusted earnings of 38 cents per share beat the consensus of 37 cents.
In the space-aerospace complex, a Blue Origin rocket failure during a ground test on Thursday night in Florida weighed on related names. AST SpaceMobile, which has a partnership with Blue Origin, slid about 15%; EchoStar fell roughly 4.5%; Rocket Lab declined about 5.5% in premarket trade.
Among software and cloud names, Okta rose almost 8% after providing current-quarter and full-year revenue guidance that topped FactSet estimates. The company also reported first-quarter non-GAAP earnings, revenue and operating income above consensus. NetApp jumped about 16.5% after guiding first-quarter and full-year figures well ahead of expectations and on the back of a quarterly beat on both earnings and revenue. Autodesk declined about 7% after first-quarter ex-subscription revenue came in at $98 million, below the StreetAccount forecast of $100.4 million, though the company still topped on the top and bottom lines and projected current-quarter results above consensus.
Snowflake rose 1.5% in premarket trading after a 36% surge on Thursday, which marked what some traders called its best day ever. HSBC upgraded the stock to buy, arguing that demand for its artificial intelligence tools should continue to grow. In the same space, Asana rose about 2% as the enterprise work-management platform guided full-year revenue of $856 million to $864 million, beating the StreetAccount consensus of $854 million, with current-quarter revenue guidance of $213 million to $215 million also above the Street’s view of $212 million.
MongoDB edged up about 3.5% after the software company lifted its full-year guidance for adjusted earnings, revenue and adjusted operating income, all of which came in above what analysts polled by FactSet had forecast. The company also posted a first-quarter beat on all three metrics. PagerDuty climbed about 12.5% after raising its full-year earnings guidance to a range of $1.27 to $1.32 per share, higher than its previous $1.23 to $1.28 range and above the consensus of about $1.26. The company also beat on the top line and adjusted operating income for the first quarter.
Elastic shares fell more than 6% after the software provider forecast current-quarter adjusted earnings of 57 cents to 59 cents per share, missing the roughly 63 cents expected by analysts polled by FactSet. However, the company’s fiscal fourth-quarter adjusted earnings and revenue came in above expectations.
SentinelOne dropped about 16% after guiding for current-quarter revenue of $289 million to $291 million, below the roughly $292 million analysts expected, and with adjusted earnings also missing expectations.
Overall, the session underscored a bifurcated market: hardware-heavy equities rallying on stronger guidance, while several software and cybersecurity names traded mixed to softer on guidance that missed or signaled caution. The moves also reflected ongoing debates about demand in AI-related tools and the persistence of cost-cutting and efficiency drives across tech portfolios, according to observers.
Key takeaways
- Price move: Dell Technologies up about 37% in premarket trading after raising full-year guidance; broader computer hardware group following higher by notable percentages.
- Catalyst: Dell’s proposed earnings and revenue targets; mixed results and guidance from peers across hardware, software, and services.
- Key implication: Early signals of resilience in certain hardware names and AI-driven software demand, counterbalanced by softness in some consumer-facing and cybersecurity segments.
What drove the move
The centerpiece was Dell Technologies’ lift of its full-year outlook. The company projects adjusted earnings per share of $17.90 and revenue of $165 billion to $169 billion, according to CNBC. That guidance jump helped lift the entire computer-hardware complex, with peers like Hewlett Packard Enterprise, Super Micro Computer and HP gaining in sympathy with the stronger backdrop for enterprise IT spending. The earnings backdrop across the sector remains mixed, as the market weighs elevated expectations against continued macro uncertainties and consumer demand signals.
Within software and cloud ecosystems, several names reported results or provided guidance that underscored a split between high-growth AI-related platforms and more traditional software businesses. Okta and NetApp posted commits to better-than-expected quarters and full-year runs, validating demand in identity management and data infrastructure. By contrast, Elastic and SentinelOne issued guidance that disappointed investors on current-quarter earnings or revenue, underscoring ongoing concerns around monetization and margins in cybersecurity and cloud-native tools.
In the growth-at-scale space, Snowflake’s rebound after a prior rally was noted by analysts as evidence of persistent enthusiasm for AI-enabled data platforms, with HSBC upgrading the stock to buy on the belief that demand for AI tools will sustain momentum. At the same time, several other software players offered forward-looking guidance that beat Street expectations, including Asana and MongoDB, while Autodesk faced a drag from ex-subscription revenue, even as it posted a quarterly beat overall.
Market reaction
Premarket trading painted a mixed portrait: hardware names led the gains, while space and some software peers declined or moved modestly. The blast of optimism around Dell did not fully translate into a broad-based rally across all technology segments. The Blue Origin test failure weighed on related space operators, dragging down AST SpaceMobile and other space-linked stocks. Investors are balancing the report-driven gains in select AI-friendly software and data platforms against pockets of softer guidance in other corners of tech and retail.
Quantitative beats were not universal: NetApp and Okta both topped expectations and raised or solidified guidance, contributing to short-covering and buying in areas of the market exposed to AI-enabled data infrastructure and identity security. Conversely, Elastic and SentinelOne signaled caution through their updated earnings forecasts, prompting selling pressure in names exposed to cloud-delivered security and analytics tools. The divergence reflects a broader market where the revenue mix, business models and exposure to AI spending are unevenly rewarded in the near term.
Bigger picture
The divergence mirrors ongoing macro themes shaping tech equities: a tilt toward durable, enterprise-facing software and data services, and a continued reallocation toward AI-enabled platforms that promise higher long-term growth. Market participants are watching for further detail on how customers allocate IT budgets in a high-rate environment, and how results from high-profile data and cloud players align with expectations for AI demand to translate into tangible earnings growth. The strength in certain hardware names indicates that pockets of hardware could still benefit from a capex cycle tied to enterprise adoption of advanced computing and data center refreshes.
Analysts point to a balancing act: the near-term reaction hinges on whether rising front-month guidance translates into sustained outperformance, and whether the AI demand narrative persists through the next wave of earnings reports. The market’s focus remains on the quality of earnings, the durability of revenue, and the scalability of business models in a landscape still influenced by rate expectations, inflation trajectories, and geopolitical tensions shaping corporate spending patterns.
What to watch next: investors will be closely monitoring further quarterly updates and full-year guidance from software, cloud and hardware peers. Key upcoming events include earnings reports from other technology providers, as well as any central bank communications that could influence capital expenditure cycles and equity valuations. Data and guidance in the coming weeks will be essential to gauge whether the current split in performance persists or if broader tech leadership resumes across segments.
