Let’s check out the companies that are becoming a hot topic for after-hours trading. Microsoft — Microsoft shares fell about 7% in after-hours trading. Cloud growth slowed in the fiscal second quarter, and the software giant gave a light outlook for operating margins in the fiscal third quarter. LSEG said adjusted earnings were $4.14 per share, beating consensus estimates of $3.97 per share. Microsoft’s revenue for the quarter was $81.27 billion, beating expectations of $80.27 billion. Southwest Airlines — Shares of Southwest Airlines rose about 6% after the airline predicted 2026 profits would soar on the back of an overhaul of its business model. Southwest said it expects adjusted earnings per share to be at least $4 in 2026. This is higher than analysts’ expectations of $3.19, according to LSEG estimates. Meta Platform — Meta share increased by 9%. The social media giant expects first-quarter revenue to be in the range of $53.5 billion to $56.5 billion, beating analysts’ consensus estimate of $51.41 billion. Fourth-quarter earnings were $8.88 per share on revenue of $59.89 billion, compared to LSEG’s consensus of $8.23 per share and revenue of $58.59 billion. Meta’s Reality Labs division posted a higher-than-expected operating loss. Tesla — Tesla stock rose 3% after the company reported better-than-expected fourth-quarter results. Tesla reported adjusted earnings of 50 cents per share on revenue of $24.9 billion, compared to analyst estimates compiled by LSEG of 45 cents per share and revenue of $24.79 billion. Indeed, Tesla’s annual sales fell 3% over the same period, marking the first time on record that the company posted an annual decline. Levi Strauss — The denim giant’s full-year profit outlook disappointed Wall Street, with expectations for $1.40 to $1.46 per share. Analysts polled by FactSet had expected earnings of $1.48 per share. The outlook clouded sales and bottom line growth in the fourth quarter. The stock price fell 2%. ServiceNow — The software stock fell more than 4% even though the company reported better-than-expected fourth-quarter profits. ServiceNow earned 92 cents per share on an adjusted basis on revenue of $3.57 billion. Analysts surveyed by LSEG had expected earnings of 88 cents per share on revenue of $3.53 billion. The company expected first-quarter subscription revenue to be in the range of $15.53 billion to $15.57 billion, also above expectations. The stock has been under pressure since the start of the year, having fallen 15% year-to-date on concerns that AI could hurt software companies’ profitability. International Business Machines — Shares rose more than 7% in after-hours trading. IBM’s fourth-quarter adjusted earnings were $4.52 per share on revenue of $19.69 billion, compared with analyst estimates compiled by LSEG of $4.32 per share on revenue of $19.23 billion. Revenues from software and infrastructure exceeded estimates by FactSet Street accounts. CEO Arvind Krishna said in a release that IBM’s generative artificial intelligence book of business has surpassed $12.5 billion. Las Vegas Sands — The casino operator’s stock fell 9%. Macau’s net revenue for the quarter came in at $2.06 billion, narrowly beating the Street account consensus call of $2.0 billion. Separately, adjusted earnings were 85 cents per share on revenue of $3.65 billion, beating LSEG consensus estimates of 76 cents per share and $3.34 billion. — CNBC’s Darla Mercado and Christina Cheddar Berk contributed reporting.
