TLDR
- Oracle stock surged 10–11% following a third-quarter earnings beat driven by 44% cloud revenue growth
- AeroVironment shares plunged nearly 10% on an earnings miss and reduced full-year outlook tied to a $151M goodwill impairment charge
- Kosmos Energy tumbled 16% following a share offering priced at $1.90, raising $185M intended for debt reduction
- Nike shares climbed 1.8% on a Barclays upgrade to Overweight with a price target increase to $73
- Diamondback Energy declined 2.7% following news of an 11 million share offering valued at approximately $1.96 billion
Wednesday’s premarket session saw mixed futures activity as market participants anticipated the release of fresh U.S. consumer inflation data. Crude oil prices ticked upward, while certain individual equities experienced significant movement before the opening bell.
Oracle emerged as the session’s top performer. The software giant’s shares rallied approximately 10–11% following its third-quarter earnings release, which exceeded analyst projections for both the top and bottom lines.
Total revenue advanced 22% compared to the prior-year period. Cloud services revenue jumped 44%, infrastructure sales surged an impressive 84%, and Fusion Cloud ERP revenue expanded 17%.
Looking ahead to the fourth quarter of fiscal 2026, Oracle anticipates revenue growth between 18–20% on a constant currency basis. This guidance implies a range of approximately $18.93 billion to $19.24 billion, aligning closely with Wall Street’s consensus estimate of $19.11 billion.
Adjusted earnings per share for the upcoming quarter are forecast between $1.92 and $1.96, modestly exceeding the analyst consensus of $1.93.
The company also enhanced its longer-term projections. Oracle now targets fiscal year 2027 revenue of approximately $90 billion, fueled by sustained momentum in its cloud operations.
AeroVironment Cuts Guidance After Impairment Charge
AeroVironment shares declined nearly 10% following a quarterly operating loss of $179 million. This represents a substantial deterioration from the $3.1 million loss recorded in the comparable quarter last year.
The expanded loss stemmed primarily from a $151.3 million goodwill impairment related to its space division. This write-down followed a stop-work order affecting the U.S. Space Force’s SCAR program.
Gross margin compressed to 24% from 38% in the year-ago period. Management attributed this decline to an elevated mix of service revenue stemming from the BlueHalo acquisition, combined with increased amortization and purchase-accounting expenses.
The company revised its full-year 2026 revenue guidance to a range of $1.85 billion to $1.95 billion, below the previous forecast of $1.95 billion to $2.0 billion. Adjusted earnings per share projections now stand at $2.75 to $3.10, significantly trailing the analyst consensus of $3.24.
CEO Wahid Nawabi emphasized that underlying demand remains robust, attributing the revenue shortfall primarily to timing factors.
Nike, Diamondback, and Kosmos Also Move
Nike advanced 1.8% to $57.07 following a Barclays upgrade to Overweight from Equal Weight. The investment bank simultaneously lifted its price target to $73 from $64.
Diamondback Energy retreated 2.7%, positioning it as the S&P 500’s weakest performer during premarket hours. The energy producer disclosed an offering of 11 million shares by an existing stockholder, representing approximately $1.96 billion in value.
Kosmos Energy plummeted 16% to roughly $2.04 after pricing an offering of 97.5 million shares at $1.90 per share. The transaction is expected to generate gross proceeds of approximately $185.25 million, earmarked for debt repayment.
Blue Owl Capital slipped 0.6% and Ares Management declined 1% amid reports that JPMorgan Chase would impose restrictions on certain lending activities to private credit funds.
Ballard Power Systems jumped 7% after unveiling an agreement to supply 500 fuel cell engines to New Flyer, a division of NFI Group, with deliveries scheduled to commence in 2026.
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