Stocks moved broadly in premarket trading as investors digested a wave of corporate updates ranging from defense procurement and earnings beats to guidance surprises and energy-price momentum. Defense and rail names climbed on results and outlooks, while several software, healthcare, semiconductor and gaming-related stocks fell after earnings or guidance missed expectations. At the same time, oil prices rose on renewed geopolitical concerns, lifting parts of the energy sector.
Key takeaways
- Defense and industrial earnings helped lift stocks: Lockheed Martin rose 3% after better-than-expected quarterly results and raised 2026 guidance.
- Guidance and sentiment drove outsized moves: Spotify gained 5% after fourth-quarter revenue guidance exceeded analyst expectations; Rollins fell more than 5% after its results missed.
- Energy strength buoyed the sector: Broad energy gains followed a jump in oil prices tied to renewed geopolitical fears.
- Semiconductors and selected healthcare names lagged: Lam Research dropped more than 7% on its second-quarter outlook, while Molina Healthcare slid 3% despite a results beat.
- Procurement headlines added volatility: Aevex jumped more than 11% after disputing a Bloomberg report about U.S. Navy procurement concerns, insisting no orders had been halted.
What drove the major premarket movers
Defense and aerospace stocks led positive reactions. Aevex shares rose more than 11% after the defense company disputed a Bloomberg News report stating that the U.S. Navy would no longer buy its GARC boat drone due to performance issues. In a release, Aevex said no orders had been halted, a clarification that appeared to reduce near-term procurement risk for investors.
Lockheed Martin climbed 3% after reporting better-than-expected third-quarter results. The company also raised its earnings and revenue guidance for 2026, reinforcing an improving outlook that helped offset any concerns about budget timelines or program execution.
In consumer media, Spotify gained 5% after reporting fourth-quarter revenue guidance that topped analyst expectations. The company also said monthly active users rose 11% year over year to 788 million, adding support to the narrative that user growth remains intact even as investors focus heavily on revenue quality and monetization.
Energy stocks benefited as oil prices surged on renewed geopolitical fears. Kinder Morgan rose nearly 2%, while APA, Valero Energy and ConocoPhillips each advanced more than 1%, suggesting investors were positioning for higher commodity-linked cash flows and potential margin support across the group.
Market reaction to earnings and guidance surprises
Not all results sparked upside. Tesla shares shed earlier gains and last traded down 3%. The move followed a third-quarter report that beat on both the top and bottom lines, with adjusted earnings of 48 cents per share and revenue of $28.05 billion. Analysts surveyed by LSEG expected 43 cents per share and $27.88 billion. Despite the beat, the stock’s decline indicated investors may have been reacting to other factors not reflected in the headline numbers, such as forward demand assumptions or margin durability.
IBM slipped 5% after reporting adjusted third-quarter earnings of $2.95 per share, versus analysts’ expectation of $2.86 per share. Revenue also beat estimates, and IBM said it now expects full-year 2026 free cash flow to rise by more than $1 billion versus the prior year. The selloff despite positive operating results suggests that investors were likely looking for additional detail—such as cash-flow drivers, durability of performance, or segment trends—that did not fully satisfy the market.
Rollins fell more than 5% after third-quarter results missed Street expectations. The company reported 33 cents per share on $1.09 billion in revenue, compared with a FactSet consensus calling for 34 cents a share and $1.11 billion.
Meta Platforms declined 2% even after revenue came in ahead of analysts’ estimates. Third-quarter revenue was $64.60 billion versus the LSEG consensus of $63.37 billion. The midpoint of fourth-quarter sales guidance also exceeded Street estimates. The negative reaction highlights how, for large platform companies, investors often place significant weight on the trajectory of spending, ad demand, and longer-term engagement assumptions—factors that may not be fully captured by near-term beats.
Las Vegas Sands dropped 2% following what investors interpreted as disappointing third-quarter performance. Adjusted earnings were 54 cents per share on $3.22 billion in revenue, while analysts surveyed by LSEG expected 69 cents and $3.35 billion.
Semiconductors, rail, and healthcare: mixed signals
Lam Research fell more than 7% after outlining a second-quarter outlook that investors appeared to find slightly less compelling than expected. Lam forecast adjusted earnings of $2.33 per share (plus or minus 15 cents) on revenue of $8.60 billion (plus or minus $400 million). Analysts expected $2.31 per share and revenue of $8.53 billion.
On the upside, CSX rose 2% after reporting an earnings beat. The company earned 57 cents per share on revenue of $4.02 billion, compared with LSEG estimates of 53 cents and $3.96 billion. CSX also reported revenue per unit increased 7% in the period, versus a StreetAccount consensus expectation for 5.9% growth, reinforcing operational momentum.
In managed care, Molina Healthcare declined 3%. The company’s third-quarter results beat expectations, but its premium revenue guidance for the full year remained roughly $42 billion. Molina also reaffirmed guidance metrics across all segments. In comments carried in the report, CEO Joseph Zubretsky said medical cost trends appear to be plateauing and suggested Medicaid margins could be at the start of a turn, while rate updates for 2027 remain a key factor.
QuantumScape surged 7% after announcing plans to build a 100 megawatt-hour solid-state battery production line for artificial intelligence data centers, a move investors typically view as expanding the timeline and scale of commercialization opportunities.
What to watch next
With earnings season momentum continuing, investors will likely focus on guidance precision—particularly for large-cap platforms, industrials and semiconductors—as well as how companies frame demand, margins and cash-flow visibility. Next up, additional earnings reports and forward-looking commentary, alongside upcoming macro data and central-bank signals, could further shape risk appetite as markets gauge whether current results beats translate into sustained outlook upgrades.
