Technology companies delivered robust earnings guidance on Friday, sending Dell Technologies and storage solutions providers soaring while energy stocks continued their decline amid geopolitical uncertainty. Dell surged 29% after raising its full-year guidance to $17.90 in adjusted earnings per share with revenue between $165 billion and $169 billion, significantly exceeding analyst expectations of $13.09 per share on $142.5 billion in revenue.
CNBC reported the gain put Dell stock on pace for its second-best day ever, demonstrating the market's confidence in private sector innovation and enterprise technology demand. The technology sector's strength contrasted sharply with energy stocks, which fell for a fourth straight day after President Donald Trump said he was close to making "a final determination" on a deal to end the U.S.-Iran war.
Energy Sector Pressures
OneOK led the S&P 500 energy sector lower, losing more than 3%. Chevron and Exxon Mobil were down 0.8% each, and Occidental Petroleum shed more than 1%. The potential resolution to the U.S.-Iran conflict, while positive for geopolitical stability, created uncertainty about future oil supply dynamics and pricing.
Technology Winners Multiply
Dell's performance lifted the broader computer sector. Hewlett Packard Enterprise was up more than 14%, Super Micro Computer rose 11.8% and HP was up 8%. NetApp popped 25% after sharing first-quarter and full-year guidance that beat what analysts polled by FactSet were expecting. The company also posted a fiscal fourth-quarter adjusted earnings and revenue beat. If it holds, the gain would mark NetApp's best daily performance since 2002.
Okta added 25% after sharing current-quarter revenue guidance and full-year revenue guidance that exceeded what analysts polled by FactSet were expecting. Okta also reported first-quarter non-GAAP earnings, revenue and operating income that beat consensus estimates. PagerDuty advanced 29% after raising its full-year earnings guidance to between $1.27 and $1.32 per share, up from previous guidance of between $1.23 and $1.28 per share and above FactSet's $1.26 per share estimate. PagerDuty also reported a first-quarter adjusted earnings, revenue and adjusted operating income beat.
Energy Storage and Retail Divergence
Nextpower jumped 13% after the company announced it acquired battery storage company Prevalon Energy for about $365 million and raised its full-year revenue guidance. The acquisition demonstrates continued private sector investment in energy infrastructure and storage solutions.
Retail stocks faced headwinds. American Eagle Outfitters dropped 13% after comparable sales at the company's American Eagle banner fell 2% in the first quarter, while analysts polled by StreetAccount had expected 3.1% growth. Guidance for the second quarter also disappointed, as the company called for operating income of $45 million to $50 million, versus the FactSet consensus estimate of $65.3 million.
Gap tumbled more than 17% after cutting its sales outlook for the year and now expects companywide sales to grow between 1% and 2%, down from a prior estimate of 2% to 3%. Gap's first-quarter revenue was $3.50 billion, below the $3.52 billion analysts had expected, per LSEG, though adjusted earnings of 38 cents per share beat the anticipated 37 cents.
Space Sector Setback
Space stocks fell after a Blue Origin rocket exploded on a launchpad during a ground test Thursday night in Florida. AST SpaceMobile, which has a partnership with Blue Origin, tumbled almost 17%. EchoStar was off 3.2% and Rocket Lab tumbled 6.2%. SentinelOne shed nearly 9% after guiding for revenue in its current quarter of between $289 million and $291 million, below the $292 million analysts polled by LSEG had expected. Projections for adjusted earnings in the period also missed expectations.
Why This Matters:
Friday's market movements underscore the resilience of American technology companies and their ability to exceed expectations through innovation and operational efficiency. Dell's dramatic earnings beat and the strong performance across enterprise technology providers demonstrate that private sector companies continue to drive economic growth and shareholder value without requiring government intervention. The energy sector's decline, while tied to geopolitical developments that could benefit national security, highlights the sector's sensitivity to policy decisions. Meanwhile, retail struggles at Gap and American Eagle reflect changing consumer preferences and the competitive pressures that separate well-managed companies from those failing to adapt. The space sector setback following Blue Origin's rocket explosion illustrates the inherent risks in emerging industries, where private investment and entrepreneurial risk-taking drive progress despite occasional failures. These market signals reflect fundamental business performance rather than speculative sentiment.