Stocks and major companies swung sharply in midday trading after a wave of quarterly reports and deal-related news reshaped earnings expectations across sectors ranging from home security and semiconductors to software and consumer retail. While several companies jumped on results that beat estimates or raised guidance, others fell on margin pressures, weaker cash flow, or reduced outlooks.
Key takeaways
- ADT surged after the home security company agreed to be acquired by Thrive Holdings in an all-cash deal valued at $15.3 billion.
- Glaukos and Textron rallied on quarterly performances that topped expectations and supported higher full-year outlooks.
- Alphabet fell following third-quarter results that showed negative free cash flow and missed revenue and core search expectations.
- DoorDash and Maplebear faced a takeover split as DoorDash agreed to acquire Maplebear (Instacart) for $65 per share, lifting DoorDash while Maplebear dropped.
- ServiceNow and Fortinet dropped after earnings and guidance came in short of consensus on key metrics.
What drove the biggest movers
A wave of earnings beats and guidance updates lifted multiple companies. Glaukos rose about 32% after reporting third-quarter revenue of $211 million, surpassing a FactSet consensus of $168 million. Adjusted earnings per share came in at 47 cents, and the company also raised its full-year revenue guidance.
Textron climbed nearly 15% after its third-quarter earnings per share of $1.76 (excluding certain items) beat a FactSet estimate of $1.43. Textron also raised its full-year earnings outlook, reinforcing investor expectations that profitability may remain resilient into 2025.
In consumer and retail, Boot Barn jumped almost 14% on second-quarter results that topped forecasts, including gross margin of 37.2% versus a StreetAccount consensus estimate of 36.6%. Sprouts Farmers Market dropped about 22% after third-quarter earnings and revenue missed expectations and the company cut full-year earnings per share guidance to around $4.80 from a prior range of $5.32 to $5.40.
Cryptic or weaker fundamentals contributed to declines as well. Alphabet fell close to 12% after its third-quarter results included negative free cash flow of $9.07 billion. The company’s core search revenue of $63.35 billion missed a $64.96 billion estimate, and total revenue of $127.58 billion also came in below an LSEG expectation of $128.22 billion.
Several technology and enterprise software names moved on earnings performance versus expectations. ServiceNow slid about 26% after adjusted third-quarter profit of $1 per share missed the LSEG consensus expectation of $1.02. Its subscription revenue guidance for the fourth quarter ranged from $4.245 billion to $4.255 billion, roughly in line with a $4.25 billion FactSet consensus, but the miss in EPS weighed on the stock. Fortinet dropped about 21% after non-GAAP gross margin for the third quarter of 79.6% came below LSEG’s 80.1% expectation, even as top- and bottom-line results beat the Street.
Deals and deal speculation added momentum
Deal news was a major driver. ADT soared about 34% after announcing it will be acquired by Thrive Holdings in an all-cash $15.3 billion transaction. The deal is expected to close in the first quarter of 2027, giving investors a catalyst for a potential takeout premium tied to deal execution.
DoorDash rose about 4% while Maplebear (Instacart) fell nearly 2% after DoorDash said it will acquire the Instacart parent for $65 per share. The offer represented an 11% premium to Maplebear’s closing price on Wednesday, and DoorDash also reported a revenue and EBITDA beat for its third quarter.
In semiconductors and data center infrastructure, Lumentum gained about 3% after Bloomberg News reported, citing sources, that the company was in talks to be acquired by Marvell, with a deal potentially announced as soon as next week. Marvell shares dropped more than 11% on the same report, reflecting the market’s sensitivity to deal timing, valuation, and integration risk.
Earnings beats and guidance changes across sectors
Not all moves were driven by downside surprises. Eli Lilly climbed about 6% after reporting third-quarter results that beat consensus, including adjusted earnings of $7.48 per share versus a $6.26 estimate from LSEG, and revenue of $24.4 billion versus a $22.61 billion expected figure. Investors appear to have responded to both earnings strength and demand visibility implied by the beat.
In the healthcare and biotech-adjacent space, Crocs surged nearly 26% following third-quarter earnings that beat estimates and stronger-than-expected guidance for the current quarter. The company reported earnings of $3.69 per share on revenue of $1.04 billion, compared with FactSet expectations of $3.31 per share on revenue of $1.00 billion.
In aerospace and industrials, Shell climbed about 2% after nearly doubling its third-quarter profit to $10.81 billion, compared with analyst expectations of $9.92 billion, according to LSEG. Caterpillar slipped more than 7% despite beating profit and revenue expectations overall; analysts cited softness within its construction industries segment as a key factor behind the negative reaction.
Other notable swings included Norwegian Cruise Line up about 13% after exceeding expectations on adjusted earnings and revenue, and ServiceNow and Honeywell Aerospace moving in opposite directions based on their own report outcomes. Honeywell Aerospace fell around 10% even after raising its full-year outlook for pro forma standalone adjusted earnings per share to $7.85 to $8, along with announcing an initial quarterly cash dividend of 40 cents per share—suggesting investors were focused on relative expectations and timing rather than the direction of the upgrade.
In autos and marketplaces, Carvana rose about 15% after third-quarter revenue and adjusted EBITDA topped Wall Street expectations and the company said the Securities and Exchange Commission closed a previously disclosed investigation without enforcement action. eBay gained more than 3% as investors responded to stronger-than-expected third-quarter results, including revenue up 14% to $3.2 billion and gross merchandise volume up 15%, alongside raised full-year guidance.
What to watch next
With investors digesting a concentrated earnings and deal docket, attention is likely to shift toward follow-through: whether raised guidance sustains momentum, how companies address margin and cash flow pressures, and how markets price deal completion risk. Next catalysts will depend on the upcoming cadence of earnings calls and additional macro data, particularly items that influence valuation through interest-rate expectations.
