The current earnings season for the fourth quarter is well past its midpoint, showcasing a generally strong performance for the S&P 500 index. While the broader market exhibits positive growth, individual companies are experiencing a range of outcomes, from significant stock rallies to notable declines, influenced by their latest financial disclosures and future projections. The tech sector, particularly in areas like artificial intelligence, continues to be a key driver, alongside the broader economic climate and consumer spending patterns.
Diverse Financial Outcomes Across Major Companies in Latest Earnings Season
As of February 12, 2026, the S&P 500 has demonstrated impressive earnings per share growth, estimated at a 13% increase for the fourth quarter. This marks the tenth consecutive quarter of annual earnings expansion for the index, with a remarkable five consecutive quarters of double-digit growth. Initially, analysts had predicted a more modest 8.3% rise, but revised expectations, especially for technology firms, have elevated these figures. The influence of artificial intelligence and substantial capital expenditures by major tech companies continue to shape market trends.
Several companies reported their results, presenting a mixed picture:
- Cisco: Shares of the networking giant fell significantly after its 2026 guidance disappointed Wall Street. Despite reporting a second-quarter earnings per share of $0.80, exceeding analyst estimates of $0.74, and a 10% year-over-year revenue increase to $15.3 billion, the full-year forecast of $3.00 to $3.08 earnings per share on $61.2 billion to $61.7 billion revenue fell short of the anticipated $3.12 earnings and $62.1 billion revenue.
- AppLovin: This mobile app technology company exceeded quarterly revenue expectations, signaling positive momentum.
- Equinix: The data center operator's stock saw a substantial jump, rising over 9% in extended trading. The surge was driven by strong annual revenue guidance, fueled by the ongoing demand for AI data centers.
- Crocs: The footwear company's shares soared by more than 13% in premarket trading. Crocs reported better-than-expected fourth-quarter earnings of $2.29 per share against an estimate of $1.91, with revenue reaching $958 million. Their upbeat 2026 profit guidance of $12.88 to $13.35 per share also surpassed analyst expectations.
- Vertiv: Vertiv's stock climbed 15% premarket after its 2026 financial forecast, projecting adjusted earnings per share of $5.97 to $6.07, outperformed Wall Street estimates of $5.51. This strong outlook overshadowed a slight earnings miss in the fourth quarter.
- Birkenstock: The iconic footwear maker saw its shares fall 3% premarket, missing analyst revenue expectations for its first quarter, attributed to reduced discretionary consumer spending.
- Baxter: The US healthcare company's stock dropped 14% after forecasting annual profit below Wall Street estimates, citing persistent issues from hurricane damage at a manufacturing plant.
- Mattel: The toymaker's stock fell 25% after reporting top- and bottom-line misses in the fourth quarter and disappointing 2026 guidance.
- Lyft: The ride-sharing company's stock plunged over 15% in after-hours trading due to a surprise operating loss in 2025 and a weaker-than-expected first-quarter 2026 outlook.
- Robinhood: Robinhood's stock tumbled 7% after missing revenue estimates despite better-than-expected earnings.
- Restaurant Brands: The company reported adjusted earnings and revenue that beat estimates for the fourth quarter.
- Kraft Heinz: The food giant paused its plans to split into two companies, committing to a $600 million investment across marketing, sales, R&D, and pricing, with shares falling over 6% in premarket trading.
- T-Mobile: The telecommunications provider added fewer wireless subscribers than anticipated due to intense market competition.
- Humana: This healthcare company forecasted 2026 profit below estimates.
- Marriott: CEO Anthony Capuano highlighted a "K-shaped economic bifurcation of the consumer," with strength primarily observed in the luxury segment.
The current earnings season offers a vivid snapshot of the corporate landscape, revealing both robust growth areas and challenges. For investors, these diverse outcomes underscore the importance of nuanced analysis beyond aggregate market trends. The strong performance of companies tied to AI and digital infrastructure, contrasted with struggles in discretionary consumer goods and certain sectors facing unique challenges, highlights evolving economic forces. This period serves as a crucial reminder that individual company fundamentals and strategic adaptations are paramount in navigating a dynamic market environment, where both significant opportunities and considerable risks coexist.