Check out the companies making the biggest moves in pre-market trading: ServiceNow — The software stock fell 11% even though the company’s fourth-quarter results beat expectations. Morgan Stanley said ServiceNow’s report is “good, but not enough” to convince skeptical investors that the company’s business will continue to grow strongly in the face of competition from artificial intelligence. Software Stocks — Following ServiceNow’s results, other software stocks also fell significantly, entering a bear market. Atlassian stock fell 12%, DataDog fell about 8%, Salesforce fell 7% and Workday fell 9%. All stocks are reacting to concerns that AI is threatening to disrupt their business models. United Rentals — The rental company fell 14% after disappointing fourth-quarter results as rental revenue margins came under pressure. The company’s earnings, excluding items, were $11.09 per share on revenue of $4.21 billion. Analysts polled by FactSet had expected earnings of $11.79 per share and revenue of $4.24 billion. Tesla — Shares fell more than 2% after the company posted its first-ever annual revenue decline and announced detailed plans to end production of the Model S and Model X as it shifts efforts to developing the Optimus humanoid robot and self-driving cars. Tesla also said capital spending will accelerate this year to support these efforts. Royal Caribbean — The cruise line soared 15% after reporting first-quarter adjusted earnings in the range of $3.18 to $3.28 per share, beating analysts’ estimates of $2.91 per share compiled by LSEG. Adjusted earnings per share of $2.80 in the fourth quarter were in line with expectations, but sales were below expectations. The news also sent shares of rival cruise lines rising, with Norwegian Cruise Line up 8% and Carnival up about 6%. Honeywell — Shares rose about 4% after the industry giant reported mixed fourth-quarter results ahead of a planned divestiture and restructuring. The company earned $2.59 per share, excluding certain items. This beat LSEG’s estimate of $2.54 per share. However, sales were $9.76 billion, below the consensus of $9.85 billion. Meta Platforms — Shares rose 8%. 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 Lab division posted a higher-than-expected operating loss. Southwest Airlines — The airline rose 13% on expectations for 2026 profits to soar on the back of an overhaul of its business model. Southwest Airlines 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. Caterpillar — The industrial giant rose more than 3% after reporting much better-than-expected fourth-quarter results. The company had revenue of $19.13 billion and adjusted earnings per share of $5.26. Analyst estimates compiled by LSEG were for earnings of $4.68 per share and sales 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’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. Dow — The chemical company fell 4% following its latest financial results. Dow’s fourth-quarter revenue of $9.46 billion matched FactSet consensus estimates. However, operating EBITDA of $741 million exceeded analysts’ expectations of $665 million. Microsoft — The tech giant fell 12%. Cloud growth slowed in the second quarter of the fiscal year, and the software giant gave a downbeat outlook for operating margins in the third quarter of the fiscal year. 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. Las Vegas Sands — The casino operator’s stock fell 14%. 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. L3 Harris — Defense contractor fell 2%. L3Harris reported fourth-quarter revenue of $5.65 billion, which fell short of the $5.77 billion expected by analysts surveyed by FactSet. However, adjusted earnings per share were $2.86, beating the consensus estimate of $2.76. International Paper — Shares of the packaging giant fell 7% after it announced it would split into two separate companies. As a result of this separation, the European business will be separated from the North American business. International Paper also reported higher fourth-quarter sales, but earnings per share were lower than analysts expected. Lockheed Martin — The defense contractor rose 5% following its fourth quarter results. Lockheed Martin reported earnings of $5.80 per share and revenue of $20.32 billion. Analyst estimates compiled by LSEG were for earnings of $5.70 per share and revenue of $19.85 billion. The full-year EPS outlook also exceeded expectations. — CNBC’s Fred Imbert contributed reporting.
