- Robinhood fell almost 5% in extended trading after third-quarter revenue only matched expectations and earnings missed, with net income falling, CNBC reported; a later CNBC update put the decline at 7%. Average revenue per user was $200, just short of the $201.09 StreetAccount consensus, and the stock is now 38% below the high it reached last October.
- Seagate sank 6% even though the data storage company beat on earnings and revenue in its fiscal first quarter, per LSEG, and gave better-than-expected guidance for the current quarter. The reaction suggests expectations were running well ahead of the reported numbers.
- NXP Semiconductors tumbled 9% after guiding fourth-quarter revenue to $3.85 billion, plus or minus $100 million, or a range of $3.75 billion to $3.95 billion (Lumida calculation), against an LSEG consensus of $3.86 billion. Adjusted operating income is expected at $1.374 billion to $1.442 billion, versus the $1.44 billion FactSet consensus.
- Stock futures were flat Tuesday evening after the S&P 500 rose for a second straight day, with Dow futures up 5 points. Wednesday brings the Fed decision at 2 p.m. ET, earnings from Biogen, Boston Scientific and GSK before the bell, and Alphabet and Microsoft after the close.
What Happened?
The after-hours moves capped a session in which the S&P 500 posted its second straight gain. Robinhood lowered the high end of its forecast for full-year 2026 adjusted operating expenses, but that was not enough to offset an earnings miss and lower net income. Seagate fell despite a beat-and-raise quarter, and NXP dropped after a fourth-quarter revenue outlook that came in roughly in line with expectations. Robinhood CEO Vlad Tenev is due on CNBC’s “Squawk on the Street” in the 10 a.m. hour ET Wednesday.
Why It Matters?
The pattern of in-line or even better-than-expected numbers drawing selling shows how high the bar is in this earnings season. For Robinhood, revenue per user matters because it measures how much the platform earns from each customer as trading activity cools. For chip and storage names, investors are pricing in strong AI-driven demand, so guidance that merely matches forecasts can be treated as a disappointment, as NXP’s 9% drop shows.
What’s Next?
Robinhood’s call with management on CNBC will be watched for comments on trading activity and costs. The bigger tests come later Wednesday: Alphabet, which is off 21% from its May high, and Microsoft, which is up 36% in three months but flat over the past year, both report after the bell, following the Fed’s 2 p.m. decision. Their results will show whether the reset in expectations seen in Robinhood, Seagate and NXP extends to the largest tech companies.
