TLDR
- Oracle shares surged 10–11% following strong Q3 results that exceeded earnings and revenue expectations, powered by 44% cloud revenue growth
- AeroVironment declined nearly 10% after reporting disappointing earnings and lowering full-year projections due to a $151M goodwill impairment charge
- Kosmos Energy plunged 16% following the announcement of a share offering priced at $1.90 to generate $185M for debt reduction
- Nike advanced 1.8% following a Barclays upgrade to Overweight with a price target increase to $73
- Diamondback Energy declined 2.7% following the announcement of an 11 million share offering valued at approximately $1.96 billion
Stock futures showed mixed performance Wednesday morning while investors awaited the upcoming U.S. consumer inflation data. Oil markets saw modest gains, while numerous individual equities experienced significant premarket price swings.
Oracle emerged as the session’s top performer. The stock advanced approximately 10–11% following the company’s third-quarter earnings report that surpassed Wall Street projections for both profit and revenue.
Revenue increased 22% compared to the prior-year period. Cloud revenue expanded 44%, infrastructure sales jumped 84%, while Fusion Cloud ERP revenue grew 17%.
Looking ahead to the fourth quarter of fiscal 2026, Oracle anticipates revenue growth between 18–20% on a constant currency basis. This guidance points to approximately $18.93 billion to $19.24 billion, aligning with analyst projections of $19.11 billion.
Adjusted earnings per share for the coming quarter are forecast between $1.92 and $1.96, moderately exceeding the consensus forecast of $1.93.
Oracle enhanced its longer-term financial targets as well. Management now projects fiscal 2027 revenue will hit approximately $90 billion, fueled by ongoing expansion in cloud services.
AeroVironment Lowers Guidance Following Impairment Charge
AeroVironment dropped nearly 10% following a quarterly operating loss report of $179 million. This represents a significant decline from the $3.1 million loss recorded during the corresponding quarter last year.
The expanded loss stemmed primarily from a $151.3 million goodwill impairment within its space segment. This charge resulted from a stop-work order affecting the U.S. Space Force’s SCAR program.
Gross margin contracted to 24% from 38% in the year-ago period. Management attributed this decline to an increased proportion of service revenue stemming from the BlueHalo acquisition, combined with elevated amortization and purchase-accounting expenses.
AeroVironment revised its full-year 2026 revenue outlook to $1.85 billion to $1.95 billion, down from the previous range of $1.95 billion to $2.0 billion. Adjusted earnings per share expectations now stand at $2.75 to $3.10, falling short of the $3.24 analyst consensus.
CEO Wahid Nawabi emphasized that customer demand continues at healthy levels, attributing the revenue adjustment to scheduling factors.
Nike, Diamondback, and Kosmos Also Move
Nike climbed 1.8% to $57.07 following a Barclays rating upgrade to Overweight from Equal Weight. The investment firm simultaneously increased its price objective to $73 from $64.
Diamondback Energy fell 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 tumbled 16% to approximately $2.04 following the pricing of 97.5 million shares at $1.90 per share. The equity offering will generate gross proceeds around $185.25 million, earmarked for debt reduction purposes.
Blue Owl Capital declined 0.6% while Ares Management dropped 1% following news that JPMorgan Chase would impose restrictions on certain lending activities to private credit funds.
Ballard Power Systems jumped 7% following the announcement of a supply agreement for 500 fuel cell engines to New Flyer, a division of NFI Group, with shipments beginning in 2026.
