Check out the companies making the biggest moves in premarket trading: ServiceNow — The software stock tumbled 11% despite the company’s better-than-expected fourth-quarter results. Morgan Stanley said ServiceNow’s report was “Good, but not good enough” to convince skeptical investors that the company’s business would continue to see robust growth in the face of competition from artificial intelligence. Software stocks — In the wake of ServiceNow’s results, other software stocks plunged deeper and entered a bear market. Atlassian shares fell 12%, Datadog was down about 8%, Salesforce tumbled 7%, while Workday slipped 9%. All the stocks are reacting to worries that AI is poised to disrupt their business models. United Rentals — The rental company fell 14% after it posted disappointing fourth-quarter results as margins on rental revenue came under pressure. The company earned $11.09 per share, excluding items, on revenue of $4.21 billion. Analysts surveyed by FactSet expected a profit of $11.79 per share and revenue of $4.24 billion. Tesla — The stock fell more than 2% after the company posted its first-ever decline in annual revenue and detailed plans to end production of its Model S and X cars as it shifts its efforts to building Optimus humanoid robots and developing driverless cars. Tesla also said capital expenditures will accelerate this year to support these efforts. Royal Caribbean — The cruise line popped 15% after guiding for first-quarter adjusted earnings in a range of $3.18 to $3.28 per share, topping the $2.91 a share expected from analysts polled by LSEG. Its fourth-quarter adjusted earnings of $2.80 per share was in line with expectations, while its revenue missed estimates. The news also lifted shares rival cruise lines, with Norwegian Cruise Line rising 8% and Carnival up about 6%. Honeywell — The industrial giant rose almost 4% after reporting mixed fourth-quarter results ahead of its plans to break up and restructure its businesses. The company earned $2.59 per share, excluding certain items. That exceeded an LSEG estimate of $2.54 per share. Revenue of $9.76 billion was below the $9.85 billion consensus, however. Meta Platforms — Shares jumped 8%. The social media giant called for first-quarter sales to range from $53.5 billion to $56.5 billion, topping the analysts’ consensus call for $51.41 billion. Fourth-quarter earnings came in at $8.88 per share on revenue of $59.89 billion, while the LSEG consensus sought $8.23 per share and $58.59 billion. Meta’s Reality Labs unit recorded a greater operating loss than expected. Southwest Airlines — The carrier rallied 13% after forecasting a surge in 2026 profits on the back of its business model overhaul. Southwest Airlines said it expects to earn, at minimum, an adjusted $4 per share in 2026. That’s higher than the $3.19 analysts expected, according to estimates from LSEG. Caterpillar — The industrial giant rose more than 3% after it posted much better-than-expected results for the fourth quarter. The company earned an adjusted $5.26 per share on revenue of $19.13 billion. Analysts polled by LSEG expected a profit of $4.68 per share on revenue of $17.86 billion. The beat was driven by a 23% increase in power and energy sales. International Business Machines — Shares soared nearly 6%. IBM posted fourth-quarter adjusted earnings of $4.52 per share on revenue of $19.69 billion, while analysts polled by LSEG sought $4.32 per share on revenue of $19.23 billion. Revenue from software and infrastructure surpassed estimates from FactSet’s StreetAccount. CEO Arvind Krishna said in a release that IBM’s generative artificial intelligence book of business topped $12.5 billion. Dow — The chemical company slipped 4% following its latest financial results. Dow’s fourth-quarter revenue of $9.46 billion was in line with the FactSet consensus estimate. Its operating EBITDA of $741 million, however, topped the $665 million expected by analysts. Microsoft — The tech giant dropped 12%. Cloud growth slowed in the fiscal second quarter, and the software giant gave light guidance for operating margin in the fiscal third quarter. Adjusted earnings came out at $4.14 per share, higher than consensus expectations of $3.97 per share, according to LSEG. Microsoft’s revenue of $81.27 billion for the quarter was also higher than the expected $80.27 billion. Las Vegas Sands — The casino operator saw shares shed 14%. Net revenue in Macao came in at $2.06 billion in the fourth quarter, barely beating the StreetAccount consensus call for $2 billion. Separately, adjusted earnings of 85 cents a share on revenue of $3.65 billion surpassed the LSEG consensus estimate of 76 cents per share and $3.34 billion. L3Harris — The defense contractor fell 2%. L3Harris reported revenue of $5.65 billion for the fourth-quarter, short of the $5.77 billion expected from analysts polled by FactSet. Its adjusted earnings of $2.86 per share, however, beat the $2.76 consensus estimate. International Paper — The packaging giant shares fell 7% after it said it would split into two independent companies. The separation will spin off its European business from its North America one. International Paper also reported a revenue beat for its fourth quarter, but its earnings per share missed analyst estimates. Lockheed Martin — The defense contractor moved 5% higher on the back of its fourth-quarter financial results. Lockheed Martin reported earnings of $5.80 per share on revenues of $20.32 billion. Analysts polled by LSEG had expected earnings of $5.70 per share on revenues of $19.85 billion. Its full-year EPS guidance also topped expectations. — CNBC’s Fred Imbert contributed reporting.
Stocks making the biggest moves midday: NOW, CRM, LUV, CCL
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Software stocks enter bear market on AI disruption fear with ServiceNow plunging 11% Thursday
