TLDR
- Oracle stock surged 10–11% following strong Q3 results that exceeded expectations, powered by 44% cloud revenue growth
- AeroVironment shares plunged nearly 10% after an earnings miss and reduced full-year outlook stemming from a $151M goodwill write-down
- Kosmos Energy tumbled 16% following the announcement of a share sale priced at $1.90, raising $185M for debt reduction
- Nike advanced 1.8% on a Barclays upgrade to Overweight with a new $73 price target
- Diamondback Energy declined 2.7% following news of an 11 million share secondary offering valued at approximately $1.96 billion
Premarket trading showed mixed sentiment on Wednesday as market participants awaited the release of February’s consumer inflation data. Crude oil prices ticked upward while several individual equities experienced notable volatility before the opening bell.
Oracle emerged as the session’s top performer. The software giant’s shares climbed approximately 10–11% following the release of fiscal third-quarter earnings that exceeded analyst projections across key metrics.
Top-line results showed a 22% year-over-year increase. Cloud services revenue jumped 44%, infrastructure sales skyrocketed 84%, and Fusion Cloud ERP revenue expanded 17%.
Looking ahead to the fourth quarter of fiscal 2026, Oracle management anticipates revenue growth between 18–20% on a constant currency basis. This guidance implies revenue ranging from approximately $18.93 billion to $19.24 billion, aligning closely with the Street’s $19.11 billion estimate.
Adjusted EPS for the upcoming quarter is forecasted between $1.92 and $1.96, modestly exceeding the analyst consensus of $1.93.
Management also increased its longer-term projections. The enterprise software company now targets fiscal 2027 revenue of approximately $90 billion, fueled by sustained momentum in cloud services.
AeroVironment Reduces Outlook Following Impairment
AeroVironment shares declined nearly 10% after the defense contractor reported a quarterly operating loss totaling $179 million. This represents a significant deterioration from the $3.1 million loss recorded in the comparable year-ago period.
The expanded loss primarily resulted from a $151.3 million goodwill impairment charge related to its space segment. This write-down followed a stop-work directive on the U.S. Space Force’s SCAR contract.
Gross profit margin compressed to 24% from 38% in the prior-year quarter. Management attributed the decline to an elevated services revenue mix following the BlueHalo transaction, combined with increased amortization and acquisition accounting impacts.
The company trimmed its full-year 2026 revenue guidance to a range of $1.85 billion to $1.95 billion, down from the previous outlook of $1.95 billion to $2.0 billion. Adjusted EPS expectations were lowered to $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 to timing factors rather than fundamental weakness.
Nike, Diamondback, and Kosmos Round Out Movers
Nike shares appreciated 1.8% to $57.07 after Barclays analyst elevated the rating to Overweight from Equal Weight. The firm simultaneously increased its price objective to $73 from $64.
Diamondback Energy retreated 2.7%, registering as the S&P 500’s weakest premarket performer. The Permian Basin operator disclosed a secondary offering of 11 million shares from an existing shareholder, representing approximately $1.96 billion in value.
Kosmos Energy plummeted 16% to roughly $2.04 following the pricing of a 97.5 million share offering at $1.90 per share. The transaction is expected to generate gross proceeds of approximately $185.25 million, earmarked for debt reduction.
Blue Owl Capital edged down 0.6% while Ares Management slipped 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 deliver 500 fuel cell engines to New Flyer, a subsidiary of NFI Group, with shipments commencing in 2026.
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