Earnings Recap - April 04, 2026 (Morning)

 ## Overnight Earnings Movers Companies that reported after yesterday's close or before today's open: ### Beats & Positive Reactions **$LW** - Lamb Weston Holdings reported Q3 results that exceeded expectations, leading JPMorgan to note the results were better than feared. The stock responded positively with a 2.26% gain to $39.35, reflecting investor relief on the company's operational execution amid challenging conditions. **$MCK** - McKesson delivered solid earnings, contributing to a 1.57% rise in its stock price to $886.00. The healthcare distribution giant continues to benefit from steady demand and operational efficiencies. **$NCNO** - nCino saw a 2.62% increase to $17.00 after Morgan Stanley raised its price target from $21 to $23, signaling confidence in the company's growth prospects in the fintech sector. **$NET** - Cloudflare's shares jumped 2.94% to $211.48, buoyed by strong retention metrics and an attractive valuation as highlighted by recent analyst commentary. **$PENG** - Penguin Solutions surged 12.77% to $20.58 following a price target raise to $32 by Rosenblatt, reflecting optimism about the company's Q2 earnings rally despite some skepticism. **$PRGS** - Progress Software gained 2.67% to $25.76, though Wedbush lowered its price target to $45, the stock's positive momentum suggests investors are focusing on near-term growth catalysts. **$PLTR** - Palantir Technologies rose 1.36% to $148.48 despite ongoing concerns about growth sustainability, indicating some investor appetite for its AI-driven software offerings. **$ORCL** - Oracle's shares increased 0.66% to $146.19, supported by steady cloud revenue growth and margin expansion. **$GS** - Goldman Sachs edged up 0.43% to $863.92 after acquiring Innovator, adding $31 billion in ETF assets, which may contribute to future earnings growth. ### Misses & Negative Reactions **$TSLA** - Tesla disappointed with a 5.25% drop to $361.26. Despite insider buying at $20.57 strike price, the stock's decline reflects concerns over execution and valuation pressures amid a volatile market. **$SNAP** - Snap shares fell 4.69% to $4.67, likely due to weaker-than-expected user growth or advertising revenue, though specific earnings details were not provided. **$CAT** - Caterpillar declined 1.75% to $717.55 despite being highlighted as an AI infrastructure play. The drop may be due to margin pressures or cautious guidance. **$FDS** - FactSet Research Systems dropped 0.86% to $222.93, with RBC Capital maintaining a sector perform rating, indicating limited upside. **$MU** - Micron Technology slipped 0.86% to $364.67 despite being mentioned as a hot stock by retail investors, suggesting mixed sentiment on memory chip demand. **$GOOGL** - Alphabet's shares declined 0.52% to $295.85, reflecting some profit-taking after recent gains and competitive pressures in AI. ## Reporting Today Companies expected to report earnings today: - **$AAPL** - Before market - Investors will focus on revenue growth and AI integration progress amid mixed market sentiment. Apple’s stock was slightly down 0.07% to $255.45, reflecting cautious expectations. - **$BA** - Before market - Key metrics include commercial aircraft deliveries and defense segment margins. Boeing shares rose 0.50% to $208.35, supported by analyst optimism about a 32% upside potential. - **$C** - Before market - Watch for credit quality and trading revenue trends. Citigroup edged up 0.09% to $115.40. - **$JPM** - Before market - Focus on loan growth and trading revenue. JPMorgan shares slipped 0.18% to $294.85. - **$MS** - Before market - Earnings will be scrutinized for investment banking and trading performance. Morgan Stanley declined 0.22% to $165.81. - **$MSFT** - After market - Key metrics include cloud revenue growth and AI product adoption. Microsoft gained 1.09% to $373.40, indicating positive sentiment ahead of the report. - **$UNF** - Before market - UniFirst is expected to report with a raised price target from UBS, now at $260, signaling strong operational outlook. Shares rose 0.63% to $256.19. - **$MKC** - Before market - McCormick & Company faces cautious sentiment after JPMorgan lowered its price target to $64. Shares rose 0.97% to $48.85. Light earnings calendar today beyond these major names. ## Earnings Themes - Revenue trends continue to show divergence between tech and industrials. Tech companies like Microsoft and Oracle are benefiting from cloud and AI demand, while industrials such as Caterpillar face margin pressures. - Margin expansion is evident in healthcare distribution (McKesson) and fintech (nCino), reflecting operational efficiencies and strong demand. - Guidance sentiment remains mixed. Some companies like Lamb Weston and UniFirst are showing cautious optimism with better-than-feared results or raised price targets, while others like McCormick and Progress Software face downward revisions. - AI remains a key driver, with companies like Palantir, Microsoft, and Nvidia positioning themselves as beneficiaries of the AI investment cycle, though execution risks persist. - Energy and geopolitical tensions (e.g., Iran conflict) are indirectly influencing earnings expectations, especially for industrials and energy-related firms. ## Earnings Trade Ideas 1. **$LW (Lamb Weston Holdings)**: Given the better-than-feared Q3 results and positive analyst commentary, LW could be a compelling trade idea for investors seeking exposure to resilient consumer staples in a volatile market. The 2.26% stock gain suggests improving fundamentals that may continue. 2. **$MSFT (Microsoft)**: With a solid pre-earnings run-up and strong cloud/AI growth prospects, Microsoft remains a key earnings trade. Watch for upside surprises in cloud revenue and AI adoption metrics in today’s after-market report, which could fuel further gains. Investors should monitor these reports closely for confirmation of emerging earnings trends and guidance updates amid a cautious but opportunity-rich environment.