Earnings Recap - February 26, 2026 (Morning)

 ## Overnight Earnings Movers Companies that reported after yesterday's close or before today's open: ### Beats & Positive Reactions **$ECPG** - Encore Capital Group reported a strong Q4 with earnings beating estimates by $1.20 and revenue topping expectations. The stock surged 12.72% to $65.40, reflecting investor confidence in its collections growth and operational execution. **$IMAX** - IMAX posted a solid Q4 beat, with the stock rising 3.38% to $38.08. The company’s ability to capitalize on theatrical releases and global expansion continues to drive positive sentiment. **$GWRE** - Guidewire Software exceeded earnings estimates, with shares up 6.05% to $135.89. Analysts see potential for the stock to more than double, driven by strong demand for its insurance software solutions. **$TASK** - TaskUs delivered a strong Q4, beating earnings and revenue estimates, which lifted shares 11.63% to $11.30. Growth in digital outsourcing services is supporting the upbeat outlook. **$SDGR** - Schrödinger beat expectations in Q4, with shares climbing 11.95% to $12.65. The company’s AI-driven drug discovery platform is gaining traction, fueling optimism. **$PSTG** - Pure Storage posted better-than-expected results, sending shares up 11.93% to $75.80. Demand for data storage solutions amid AI and cloud expansion underpins the rally. **$RRGB** - Red Robin Gourmet Burgers surged 14.50% to $4.26 after beating earnings estimates and showing signs of turnaround progress. **$NTNX** - Nutanix reported strong Q4 results with a 13.78% jump in shares to $43.08, driven by robust demand for hybrid cloud infrastructure. **$IONQ** - IonQ’s Q4 beat and promising quantum computing outlook pushed shares up 23.69% to $39.11, reflecting excitement in emerging tech. **$IBM** - IBM shares rose 4.81% to $240.35 following a better-than-expected quarter and positive AI-related growth commentary. **$C** - Citigroup jumped 4.57% to $114.57 after beating earnings estimates, supported by strong trading and investment banking revenues. **$MS** - Morgan Stanley gained 3.23% to $174.24 on solid earnings and optimistic wealth management trends. **$ANET** - Arista Networks beat estimates, with shares up 3.09% to $132.75, benefiting from strong data center demand. **$APO** - Apollo Global Management shares rose 3.17% to $117.75 after a solid quarter driven by private credit and asset management growth. **$MU** - Micron Technology climbed 2.78% to $429.65 despite some market concerns, supported by strong memory demand. **$BAC** - Bank of America gained 2.65% to $51.75 on better-than-expected earnings and improving credit conditions. **$SNOW** - Snowflake beat earnings estimates, with shares up 5.06% to $169.21, fueled by AI product momentum. **$ROOT** - Root, Inc. posted a strong earnings beat, lifting shares 6.05% to $61.31. **$VCYT** - Veracyte shares rose 6.16% to $37.89 after beating earnings and showing growth in diagnostics. **$SLNO** - Soleno Therapeutics gained 4.70% to $41.00 on positive earnings results. **$SONO** - Sonos jumped 5.95% to $15.68 after beating earnings estimates. **$IMAX** - IMAX shares rose 3.38% to $38.08 on strong quarterly results. **$FICO** - Fair Isaac (FICO) surged 6.34% to $1305.50, supported by accelerated buyback programs and AI-driven analytics growth. **$NFLX** - Netflix soared 6.83% to $83.37, driven by strong subscriber growth and operating leverage. ### Misses & Negative Reactions **$AI** - C3.ai reported a significant earnings miss, with shares plunging 22.73% to $7.82 amid concerns over slowing growth and cautious guidance. **$ARRY** - Array Technologies missed estimates and gave weak guidance, sending shares down 22.46% to $8.32. **$ERII** - Energy Recovery missed earnings by a wide margin, with shares down 21.59% to $12.60. **$ZIP** - ZipRecruiter reported a disappointing quarter, with shares falling 12.75% to $2.19. **$TTD** - The Trade Desk shares dropped 13.51% to $21.57 after a weak growth outlook and revenue guidance miss. **$ZM** - Zoom Communications fell 8.30% to $80.25 following a mixed Q4 report and cautious outlook. **$RVMD** - Revolution Medicines missed earnings, causing a 5.98% decline to $98.56. **$RXST** - RxSight shares fell 5.03% to $8.49 after a revenue miss. **$SARO** - StandardAero dropped 5.62% to $30.05 on weaker guidance. **$SPOK** - Spok Holdings declined 6.30% to $12.94 after missing revenue estimates. **$ZVIA** - Zevia shares fell 6.67% to $1.40 following a disappointing quarter. **$PEGA** - Pegasystems saw price target cuts and a 0.79% share decline to $42.94 amid margin pressure and cautious outlook. **$LHX** - L3Harris Technologies dropped 3.60% to $341.50 after a mixed report and margin concerns. **$HD** - Home Depot shares declined 2.09% to $376.44 despite raised price targets, reflecting profit-taking. **$ACN** - Accenture fell 2.00% to $192.80 on concerns about overinvestment and AI funding needs. **$AGYS** - Agilysys shares slipped 1.35% to $71.00 despite a maintained buy rating. **$NU** - Nu Holdings missed earnings, with shares down 3.87% to $15.89 despite revenue beat. **$CAG** - ConAgra Brands declined 2.15% to $18.69 on weaker volume and margin pressures. **$CARL** - Carl’s Jr. dropped 3.83% to $12.56 after missing growth expectations. **$CCI** - Crown Castle fell 2.93% to $86.04 amid profit-taking after recent gains. **$ATR** - AptarGroup declined 1.00% to $142.70 despite conference presentation. **$DFS** - Discover Financial slipped 1.19% to $198.10 on cautious outlook. **$VZ** - Verizon declined 1.26% to $49.23 after insider selling news. **$WBD** - Warner Bros. Discovery shares edged down 0.79% to $28.92 despite streaming subscriber growth. ## Reporting Today Companies expected to report earnings today: - **$AAPL** - Before market open - Key metrics: revenue growth, iPhone sales, AI product impact - **$CRM** - Before market open - Key metrics: subscription revenue, AI-driven ARR growth, guidance - **$NVDA** - Before market open - Key metrics: data center revenue, AI product demand, free cash flow - **$TTD** - Before market open - Key metrics: revenue growth, advertising spend trends, guidance - **$WBD** - Before market open - Key metrics: streaming subscriber growth, content costs, profitability - **$SNPS** - Before market open - Key metrics: revenue, margin trends, AI investment impact - **$ALKT** - Before market open - Key metrics: revenue growth, guidance, customer acquisition - **$ACN** - Before market open - Key metrics: consulting revenue, AI investment, margin outlook Light earnings calendar today outside these key tech and media names. ## Earnings Themes - **AI and Cloud Demand Driving Growth:** Nvidia, Snowflake, and Guidewire highlight accelerating revenue and free cash flow growth fueled by AI adoption and cloud infrastructure investments. - **Mixed Software Sentiment:** While some software companies like Guidewire and Nutanix beat estimates, others such as C3.ai and The Trade Desk disappointed, reflecting uneven AI monetization and cautious guidance. - **Margin Pressures and Investments:** Companies like Pegasystems and Accenture show margin compression due to heavy AI infrastructure spending, while others like Nvidia report margin expansion. - **Financial Sector Strength:** Banks including Citigroup, Morgan Stanley, and Bank of America posted strong earnings beats, benefiting from trading and wealth management, supporting financials' positive momentum. - **Consumer and Retail Recovery:** Netflix and Red Robin delivered strong earnings, showing resilience in consumer discretionary spending and operating leverage. - **Mixed Guidance:** Several companies issued cautious outlooks amid macro uncertainty, particularly in advertising and software sectors, while others raised guidance on AI-driven growth. ## Earnings Trade Ideas 1. **Long Nvidia ($NVDA) and Select AI Beneficiaries:** Despite a modest post-earnings gain, Nvidia’s strong Q4 results and bullish guidance on AI demand suggest continued upside. Complement with exposure to Guidewire ($GWRE) and Snowflake ($SNOW), which also reported strong AI-driven growth. 2. **Avoid or Short C3.ai ($AI) and The Trade Desk ($TTD):** Both companies missed earnings and issued cautious guidance, reflecting challenges in scaling AI revenue and advertising spend. Their sharp share declines highlight risk in the AI software hype cycle. 3. **Financials Play:** Citigroup ($C) and Morgan Stanley ($MS) showed strong earnings beats and positive momentum. Consider exposure to these names as financials benefit from stable credit conditions and trading strength. 4. **Consumer Recovery in Streaming and Restaurants:** Netflix ($NFLX) and Red Robin ($RRGB) demonstrated operational leverage and growth, making them attractive for investors seeking consumer discretionary exposure with earnings momentum.