Closing Bell: Tech Stocks Soar on Blockbuster Earnings
Fresh highs were the theme again Thursday as software stocks lifted all boats.
The S&P 500 gained 0.58% and the Nasdaq 100 rose 0.84%, while the Russell 2000 advanced by 0.57%. Health Care, Information Technology, and Consumer Discretionary led sector gains, while Utilities and Consumer Staples lagged. The benchmark price for U.S. crude rose to roughly $89 per barrel; headlines indicate that the U.S. and Iran are still sparring while negotiating an end to war.
Dell Surges on AI Server Demand, Raises Outlook and Targets $60B in AI Revenue
Dell Technologies (DELL) shares soared, up more than 23%, after it raised its full-year adjusted earnings guidance and reported adjusted earnings per share of $4.86 that were well ahead of expectations for $2.94. Total revenue jumped 88% year over year, with the greatest growth in traditional servers and networking, and AI-optimized servers, which generated $16.13B in revenue during the quarter. Looking ahead, Dell forecast Q2 revenue of $44–$45B and adjusted EPS of $4.80, also topping estimates, while lifting its full-year outlook to $165–$169B in revenue and $17.90 in EPS. The company now expects roughly $60B in AI server revenue for FY27, highlighting the continued strength of enterprise AI infrastructure spending and positioning AI as a major long-term growth driver.
MongoDB Beats on Strong Atlas Growth, Raises FY Outlook Amid AI Demand
MongoDB (MDB) shares were up 3% after hours following a strong fiscal Q1 beat, with revenue rising 25% year over year to $687.6M and adjusted EPS of $1.32, both topping expectations. MongoDB’s Atlas cloud database platform continued to drive results, with a more than 29% increase in revenue from a year ago, supported by solid enterprise demand and expanding AI-related use cases. The company raised its full-year fiscal 2027 guidance and projected Q2 revenue of $729M to $734M, with full-year revenue expected between $2.92B and $2.96B, signaling confidence in sustained demand and continued platform adoption.
Other Big Moves: Tech and Transport
- Snowflake (SNOW) shares acted like a hot rocket, up 36%, after reporting a strong Q1 Wednesday and a $6B deal expanding its Amazon Web Services and Amazon.com Inc (AMZN) relationship.
- Chip design giant Synopsys (SNPS) was the biggest loser among S&P 500 names, down nearly 9%. The company announced a cooperation agreement with activist investor Elliott Investment Management, which offset results that beat analyst estimates: earnings per share of $3.35 per share, on revenue $2.28B, for its fiscal second quarter.
- Shares of Norfolk Southern (NSC) sank 5.5%, and shares of Union Pacific (UNP) were down 4.4%, after a federal regulatory entity, the Surface Transportation Board, said Thursday that was holding its review of UNP’s proposed merger with Norfolk while it seeks more information and a ruling on a communications motion.
Consumer Stocks Mixed:
- Dollar Tree (DLTR) stock was up 18% after it reported strong fiscal first quarter adjusted earnings and revenue and raised its guidance for 2026 earnings per share.
- Best Buy (BBY) shares climbed 16% after it reported first quarter earnings and revenue that beat analyst expectations.
- Caesar’s Entertainment (CZR) stock was up 1% after it agreed to go private in a $17.6B all-cash purchase by Fertitta Entertainment.
Economic Events for Tomorrow (ET)
2:00am: FOMC Member Kashkari Speaks
6:50am: FOMC Member Schmid Speaks
8:30 AM Retail Inventories
8:30 AM Wholesale Inventories
9:10 AM Fed’s Bowman speaks
9:15 AM Fed’s Paulson speaks
9:45 AM Chicago PMI
12:40 AM Fed’s Daly speaks
1:00 PM Baker Hughes Rig Count
3:00 PM Farm Prices
Earnings Calendar
Before Market Open: N/A
After Market Close: N/A
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