- ServiceNow plummeted 18% in extended trading after its third-quarter report. Adjusted profit of $1 a share missed the $1.02 LSEG consensus, and fourth-quarter subscription revenue guidance of $4.245 billion to $4.255 billion was only in line with the $4.25 billion FactSet consensus.
- Lumentum surged 11% after Bloomberg News reported Marvell Technology is in talks to buy the optics maker, with a deal possibly announced as early as next week, while Marvell fell more than 8%. Lumentum shares had already climbed almost 148% in 2026 and Marvell almost 200%.
- Index futures turned lower. S&P 500 futures fell 0.3% and Nasdaq-100 futures lost 0.8% shortly after 6 p.m. ET as Alphabet shares slid about 10% after its earnings miss, while Dow futures were initially up 47 points.
- Other after-hours movers included Chipotle, which rose 7% even after its earnings missed, as CEO Scott Boatwright said same-store sales were rising, and Fortinet and Sprouts Farmers Market.
What Happened?
Wednesday’s regular session was the third straight winning day for the three major averages before the after-hours earnings flood. CNBC said the Lumentum talks could still change and no final agreement has been reached. Chipotle remains about 30% below its January 2026 high.
Why It Matters?
After-hours trading showed investors punishing software and search businesses that look exposed to AI disruption while rewarding AI hardware suppliers. ServiceNow’s steep drop on a small miss and in-line guidance shows how little room for error richly valued software names have, while the Marvell talks underline the race to lock up optical networking capacity for AI data centers.
What’s Next?
Amazon reports after Thursday’s close, with Wall Street expecting $202.22 billion of revenue and AWS growth of 37.8%, according to FactSet. Intel also reports, and investors will watch whether Marvell and Lumentum confirm a deal.
