Stocks and exchange-listed companies were mixed in premarket trade after a wave of quarterly results and guidance updates pushed investors to reprice earnings expectations. Shares of Snowflake surged on results that beat expectations and an upgrade to full-year product revenue guidance, lifting portions of the software sector. Other names, including Ultragenyx and Victoria’s Secret, fell sharply on trial setbacks and weaker revenue and outlook signals.
Key takeaways
- Snowflake jumped after second-quarter results exceeded analyst expectations and the company raised full-year product revenue guidance.
- Ultragenyx plunged as Phase 3 trial results for its Angelman syndrome drug failed to achieve the primary endpoint.
- Broadcom declined following a fourth-quarter revenue outlook that came in below consensus, pressuring margins expectations.
- Investor focus remains on guidance as multiple companies saw shares swing on changes to earnings, revenue growth, and margin outlook.
Snowflake’s results and sector spillover
Snowflake shares rose sharply after the company reported adjusted earnings of 62 cents per share on revenue of $1.55 billion for the quarter, topping analyst expectations of 45 cents and $1.48 billion, according to estimates compiled by LSEG. The company also raised its full-year product revenue guidance, reinforcing demand assumptions for its data cloud offerings.
The rally spilled into software peers, with Datadog climbing by more than 5% and ServiceNow up by about 3%. Salesforce gained just over 1.5%, suggesting investors were selectively rewarding companies tied to software growth narratives rather than moving broadly across the sector.
Mixed signals in enterprise and industrial tech
Broadcom slid as investors reacted to its outlook. The chipmaker’s fourth-quarter revenue forecast was $34.8 billion versus an estimate of $35.03 billion. Its non-GAAP operating margin projection for the fourth quarter was set at 66%, slightly below the 66.5% consensus. For the third quarter, Broadcom reported revenue of $29.59 billion and adjusted earnings of $3.32 per share, but the market’s attention centered on the forward revenue and margin trajectory.
Enterprise technology provider Hewlett Packard Enterprise fell about 3%. The company forecast earnings growth of 16% to 20% for the fiscal year ending October 2027, compared with a FactSet consensus of 18.7%. It also guided cash flow for the period to at least $5 billion, against the Street’s estimate of $4.79 billion—an offset that did not fully counteract other investor concerns evident in the stock’s decline.
On the industrial side, Argan shares jumped nearly 7.5% after results topped expectations. The engineering and construction firm reported second-quarter earnings of $3.76 per share, compared with the $2.64 per share analysts expected per FactSet. Revenue came in at $384 million versus a $300.5 million estimate.
Healthcare and consumer stocks swing on trial and outlook
Ultragenyx shares dropped more than 46% after the company reported that Phase 3 trial results for its Angelman syndrome treatment did not achieve the primary endpoint. Management said it was disappointed with the outcome and plans to evaluate the program while implementing significant cost reductions—moves investors typically interpret as a pivot when efficacy signals fall short.
Campbell Soup shares also fell, dropping nearly 7% after its fiscal 2027 earnings guidance came in below expectations. The company expects earnings of $1.65 to $1.80 per share, versus a FactSet consensus of $1.83 per share. It also projected revenue growth to contract at a wider rate than analysts expected for the fiscal year, reinforcing concerns that margin and volume dynamics may be under pressure.
Victoria’s Secret tumbled more than 18% following a slight revenue miss in its second quarter and weaker operating income guidance for the current quarter, according to FactSet-surveyed expectations. While full-year revenue guidance was in line with estimates and adjusted earnings beat expectations, the stock’s steep decline reflected sensitivity to near-term profitability signals.
Retail, cybersecurity, and data infrastructure outcomes
In retail, Petco rose nearly 9% after it reported second-quarter adjusted EBITDA margin of 8.2%, above a StreetAccount consensus estimate of 7.4%. Excluding a tariff benefit, the company reported a margin of 7.7%, which would still be above analysts’ expectations.
Five Below gained about 4.5% after beating expectations on both revenue and earnings for the second quarter. The company reported earnings of $1.68 per share on revenue of $1.26 billion, versus analyst expectations of $1.40 per share and $1.22 billion, and it also reported same-store sales that surpassed estimates.
Netskope jumped 12% as the company’s outlook pointed to stronger-than-expected revenue. The cybersecurity firm forecast full-year revenue in the range of $888 million to $892 million, compared with an LSEG consensus estimate of $881 million. It also projected an adjusted loss of 15 cents per share for the year, narrower than the estimated 18 cents per share.
NetApp declined about 8%. The data infrastructure company reported first-quarter deferred revenue of $4.85 billion versus a $4.86 billion StreetAccount consensus. It also posted non-GAAP gross margin of 70.6%, compared with a 69.7% estimate, but the slight revenue shortfall in deferred bookings weighed on sentiment.
Looking ahead, investors are likely to continue focusing on forward guidance—particularly margin and revenue outlook—rather than results alone. Additional upcoming catalysts for the market will include more earnings releases and follow-on commentary, alongside scheduled macro data releases and central bank updates that can influence expectations for company earnings quality and discount rates.
