Stocks in several major sectors moved sharply in premarket trading after a wave of earnings results and guidance updates, with investors focusing on revenue growth, profit delivery, and outlook. Microsoft surged, while Meta Platforms and Teladoc Health fell on post-results weakness, and cruise and consumer names saw large swings tied to forecast changes.
Key takeaways
- Microsoft shares jumped after quarterly revenue and Azure growth topped expectations, with the company also indicating fiscal 2026 Azure revenue will cross $100 billion for the first time.
- Meta Platforms fell on an earnings miss and softer third-quarter revenue guidance.
- Teladoc Health dropped as second-quarter revenue came in below estimates and full-year guidance was lowered.
- Norwegian Cruise Line slid after cutting full-year earnings expectations.
- MarketAxess rallied then was halted on acquisition news, with Intercontinental Exchange to buy the company in a cash deal valuing it at more than $5 billion.
What drove the biggest premarket moves
Microsoft led upside momentum in technology after reporting quarterly revenue of $90.01 billion, exceeding estimates of $87.62 billion, according to LSEG. The company’s Azure business grew 43% at constant currency, beating StreetAccount estimates of 40.2%. Investors also responded to guidance signals: Microsoft said Azure revenue in fiscal 2026 will surpass $100 billion for the first time.
In social media, Meta Platforms dropped nearly 9% after LSEG data showed it posted earnings per share of $6.18 versus estimates that were $1.04 higher. The company also forecast third-quarter revenue between $61 billion and $64 billion, with the low end below the $63.15 billion analysts expected, per LSEG. The combination of an EPS miss and a guidance range that skews cautious drove the early selloff.
Healthcare services also saw sharp repricing. Teladoc Health fell 18.5% after reporting second-quarter revenue of $606.9 million compared with the $615.4 million expected by analysts tracked by FactSet. The company additionally reduced its full-year revenue guidance, reinforcing the market’s focus on durability of demand and visibility into future growth.
Travel and leisure stocks were pressured by outlook changes. Norwegian Cruise Line shares slid 7% after the company cut its full-year forecast. It now expects full-year earnings of $1.50 per share, compared with prior guidance of $1.45 to $1.79. Analysts expected EPS guidance of $1.66, according to FactSet.
Consumer and industrial results set the tone
Starbucks rose 6% after lifting its full-year outlook and reporting same-store sales growth of 7.9%. LSEG data showed adjusted earnings of 85 cents per share, beating the 66 cents estimate, alongside revenue of $9.32 billion versus $9.16 billion expected. The positive mix of better-than-expected profitability and a firmer demand read supported the premarket rebound.
Chipotle Mexican Grill added 6% as results beat on both the top and bottom lines. The company also forecast that same-store sales for the full year would rise by a low single-digit percentage, an upgrade from its previous stance of flat same-store sales. The market appeared to reward the shift from stabilization to modest growth expectations.
In automobiles, Carvana fell 10% after its full-year earnings guidance missed Wall Street’s expectations. The company guided for full-year earnings between $2.7 billion and $3 billion, while estimates cited by the article ranged from $3 billion to $3.2 billion from Deutsche Bank and $4.45 billion from Morgan Stanley. The wide gap between the company’s range and some higher Street forecasts likely drove the magnitude of the selloff.
Cybersecurity and semiconductors: beats and misses diverged
Fortinet jumped 12% after results showed strong billings and an earnings beat. The company reported adjusted earnings of 90 cents per share on revenue of $2.05 billion, versus LSEG estimates of 75 cents and $1.89 billion. Fortinet’s third-quarter forecast also topped expectations, a combination that typically supports multiple expansion when investors gain confidence in demand momentum.
Semiconductor equipment name Lam Research gained nearly 9% following better-than-expected fiscal fourth-quarter results. The company posted $1.82 per share excluding items on revenue of $6.72 billion, topping market expectations cited in the article.
Not all chip-related results were received well. Qualcomm shares fell more than 4% on mixed quarterly performance, with adjusted earnings of $2.21 per share slightly below an estimate of $2.23 per LSEG. Revenue of $9.95 billion beat the $9.67 billion estimate, creating a split reaction as investors weighed the near in-line sales performance against weaker-than-expected earnings delivery.
Align Technology declined almost 4% despite narrowly beating expectations on earnings and revenue, according to FactSet. The softer element was guidance: the company’s third-quarter revenue range of $1 billion to $1.02 billion came in below analysts’ expectation of $1.02 billion, pushing the stock lower even with modest headline beats.
M&A and individual company catalysts
MarketAxess shares were halted after news that Intercontinental Exchange will acquire the company for $167 per share, valuing MarketAxess at more than $5 billion. The cash offer represents a premium of nearly 33% to Wednesday’s close, and the deal is expected to close in the first half of 2027, according to the article. The immediate market response centered on the value proposition and the takeout premium rather than operational updates.
Bristol Myers Squibb, meanwhile, rose more than 1% after reporting a beat on both revenue and adjusted earnings. The biopharmaceutical company posted second-quarter adjusted earnings of $2.04 per share on revenue of $12.97 billion, compared with LSEG estimates for EPS of $1.59 and revenue of $11.75 billion.
Overall, the premarket session underscored a familiar pattern for earnings season: investors rewarded companies that delivered on both results and forward indicators, while penalizing those that missed or reduced outlook. Next, traders will likely watch the follow-through in early trading volumes and the broader set of earnings reports and guidance updates as the session progresses, along with any additional macro data and central bank signals that could influence rate-sensitive equities.
