Stocks moved in brisk trading as investors reshaped expectations after a flood of earnings and guidance from major companies. Texas Instruments led gains after outlining a stronger-than-expected outlook for the current quarter, sending its shares higher and setting a positive tone for semiconductors. The company forecast current-quarter earnings of $1.77 to $2.05 per share, well above the consensus of $1.57, according to LSEG, and projected revenue of $5 billion to $5.4 billion, versus a $4.86 billion estimate. TI also reported a first-quarter top- and bottom-line beat, underscoring a favorable start to the year for the chipmaker.
Other notable moves shaped the session’s map of winners and losers. American Airlines rose more than 4% after its first-quarter figures topped expectations, though the carrier trimmed its full-year earnings outlook citing higher fuel costs. Penn Entertainment jumped about 15% after quarterly results beat forecasts, buoyed by strength in its regional casinos and interactive segments. Wex slumped roughly 17% as it urged shareholders to vote only for its nominees amid a campaign by Impactive Capital to replace about one-third of the board. Investor activity around Wex reflected ongoing board-level contest and governance concerns.
In the industrial and equipment sector, United Rentals surged over 23% after raising its full-year sales forecast to a range of $16.9 billion to $17.4 billion, signaling momentum heading into the seasonally strong period for equipment rentals.
Among the carry-through names, Honeywell slipped about 2.6% after a mixed first quarter and cautious second-quarter guidance. The company posted adjusted earnings of $2.45 per share, ahead of the LSEG estimate, but revenue of $9.1 billion lagged consensus. For the second quarter, Honeywell projected EPS of $2.35 to $2.45, below the FactSet consensus of $2.56.
Softness among consumer brands showed up in Lululemon’s shares, which traded down more than 11% after the athleisure maker announced Heidi O’Neill as its new chief executive officer, effective September. O’Neill previously held leadership roles at Nike, Levi Strauss, Hyatt Hotels and Spotify, bringing senior retail and brand-building experience to the position.
In the telecom hardware and software space, Nokia shares jumped about 11% after reporting a first-quarter result that beat on earnings but missed on revenue. The company’s operating profit came in above expectations, and management signaled progress toward the higher end of its full-year guidance.
Mobileye Global, the autonomous driving technology company, rose about 5% after delivering better-than-expected first-quarter results. The company posted adjusted earnings of 12 cents per share on revenue of $558 million, topping analyst expectations, with full-year revenue guidance also above prior estimates.
In the car rental and travel space, Avis Car Budget’s stock tumbled more than 43% amid continued weakness, extending a sizable decline through the week and reflecting ongoing concerns about the sector’s recovery pace. The stock had already slumped about 37.8% in the previous session, underscoring a difficult backdrop for the rental industry.
IBM’s shares fell about 9% after the tech giant failed to raise its full-year guidance despite reporting a quarterly earnings beat on an adjusted basis. IBM posted first-quarter earnings of $1.91 per share, excluding items, ahead of forecasts, on revenue of $15.92 billion, above expectations but not enough to lift the full-year outlook.
Tesla’s stock declined more than 3% as Chief Executive Elon Musk warned of substantial increases in capital spending to fund long-term ambitions in self-driving technology and humanoid robotics. The company posted first-quarter adjusted earnings of 41 cents per share, above the 37-cent consensus, but revenue of $22.39 billion came in below the average estimate of $22.64 billion.
CSX offered a glimmer of strength, rising about 7% after first-quarter earnings of 43 cents per share beat the consensus 39 cents, though revenue of $3.48 billion came in slightly below the $3.49 billion forecast.
Southwest Airlines slid roughly 2.5% after reporting first-quarter adjusted earnings of 45 cents per share and revenue of $7.20 billion, both coming up short of the average analyst projection of 47 cents and $7.27 billion, respectively.
ServiceNow generated a mixed message: first-quarter earnings and revenue topped expectations, but the stock fell more than 18% as the company cited integration of the Armis acquisition as a drag on near-term outlook. For full-year 2026, the company raised its subscription revenue guidance to a range of $15.74 billion to $15.78 billion, from $15.55 billion, incorporating Armis’ cybersecurity business.
Molina Healthcare bucked the trend, rising about 10.3% after reaffirming its 2026 forecast. The managed-care company posted first-quarter earnings of $2.35 per share, excluding items, on revenue of $10.8 billion, surpassing expectations of $1.90 per share on $10.87 billion in revenue according to FactSet consensus data referenced by CNBC.
Key takeaways
- Price move: Texas Instruments jumped about 19% after guiding higher-than-expected current-quarter earnings and revenue, marking a standout move in semiconductors.
- Catalyst: A stream of quarterly results and guidance across technology, industrials, travel, and consumer brands drove dispersion in the tape, from double-digit rallies to steep losses.
- Key implication: The session underscores how earnings trajectories and management outlooks are shifting risk sentiment across sectors, with tech and industrials broadly outperforming while travel and consumer-centric stocks show sensitive reactions to guidance and cost pressures.
What drove the move
The session’s standout driver was Texas Instruments, whose forecast for the current quarter signaled better-than-expected earnings leverage and revenue resilience in a sector that has been volatile in recent quarters. The forecast range, together with a quarterly beat, underpinned a broad bid for semiconductor exposure, even as investors weigh the risk of ongoing supply and demand imbalances in the sector.
Beyond TI, earnings surprises and raised or trimmed guidance shaped the day’s narrative. American Airlines’ Q1 results exceeded expectations, though a softer full-year outlook due to higher fuel costs tempered the stock’s gain. United Rentals’ upgraded guidance pointed to constructive demand for equipment and services in an environment of strong industrial activity, supporting a sharp post-announcement rally.
Conversely, shares in several legacy software and tech-adjacent names saw pressure as guidance and integration bets weighed on risk appetite. ServiceNow traded lower after reporting solid results but cutting into near-term outlook due to the costs associated with the Armis acquisition. IBM’s revenue beat could not offset the impact of a muted full-year outlook, prompting a negative stock reaction. The backdrop for technology and growth names remained mixed, with projects and risk management strategies cited by investors as ongoing considerations.
Market reaction
The day’s performance illustrated a bifurcated market where strong earnings momentum in a handful of industrials and tech manufacturers could coexist with underwhelming guidance or high-cost cautions in other corners. The rally in United Rentals and the tear in Texas Instruments highlighted demand for durable equipment and semiconductor resilience, even as consumer-focused names like Avis Car Budget and Lululemon faced heavy volatility tied to strategic shifts and cost structures.
In the energy and automotive-adjacent space, the reaction to capital expenditure plans and product roadmaps influenced sentiment in real-time. Tesla’s commentary on capital outlays tempered gains after a solid quarterly showing, while Nokia’s earnings beat, paired with revenue misses, kept the stock in a narrow band awaiting more clarity on 2025-2026 trajectory.
Bigger picture
Analysts and investors are parsing a earnings season characterized by a mix of beat-and-raise moments, caution on full-year guidance, and sector-specific headwinds. The breadth of moves across semiconductors, industrials, travel, and consumer brands suggests a market that is differentiating stock-by-stock based on management’s ability to navigate cost pressures, demand cycles, and strategic investments such as acquisitions and capacity expansions. The macro backdrop—rates, inflation, and geopolitical considerations—continues to color risk appetite, influencing how one-off earnings beats translate into sustained price momentum.
Investors will be watching for continued earnings signals in the weeks ahead, including updates on guidance, capital expenditure plans, and potential strategic alternatives. In particular, market participants will assess whether the strength seen in TI and United Rentals persists as macro data evolve and whether the headwinds facing airlines, hospitality, and consumer brands ease over the coming quarters. The dialogue around guidance, margins, and future growth opportunities will remain central to pricing in the near term.
Looking ahead, investors should monitor subsequent earnings prints, guidance revisions, and the macro data calendar for signals on inflation trajectory, rate expectations, and consumer demand. As always, the market’s reaction will hinge on whether management teams can translate quarterly momentum into durable earnings power in a shifting economic environment.
Source: CNBC coverage and data provided by LSEG, with contributions from CNBC’s Lisa Kailai Han and Davis Giangiulio; Christina Cheddar Berk contributed reporting.
