Stock Markets January 28, 2026

After-Hours Moves: Meta Jumps, Microsoft Retreats as Earnings Drive Volatility

Quarterly results and forward guidance send ripple effects through tech, industrials and leisure names in after-hours trading

By Marcus Reed META MSFT IBM NOW LVS
After-Hours Moves: Meta Jumps, Microsoft Retreats as Earnings Drive Volatility
META MSFT IBM NOW LVS

After the market close, Meta Platforms climbed sharply after delivering better-than-expected results and raising guidance for the next quarter, while Microsoft slipped despite strong earnings as spending rose. A mix of beats and misses across large-cap names including IBM, ServiceNow, Las Vegas Sands, Joby Aviation and United Rentals produced divergent after-hours moves.

Key Points

  • Meta Platforms jumped 10% after reporting strong results and providing Q1 2026 revenue guidance of $53.5 billion to $56.5 billion, above consensus of $51.27 billion.
  • Microsoft fell 4% despite strong GAAP and non-GAAP earnings, as spending increases weighed on the stock; GAAP diluted EPS was $5.16 (up 60%), non-GAAP EPS was $4.14 (up 24%, up 21% in constant currency).
  • Earnings and guidance influenced moves across sectors: tech (Meta, Microsoft, ServiceNow, IBM), leisure and gaming (Las Vegas Sands), aviation (Joby Aviation), and equipment rentals (United Rentals).

Stocks moved unevenly in after-hours trading as a string of quarterly reports and guidance updates prompted strong reactions from investors.

Meta Platforms saw its shares rise 10% after the company released quarterly results and issued guidance that topped analysts' forecasts, even as it signaled higher capital expenditures. Meta sees Q1 2026 revenue in a range of $53.5 billion to $56.5 billion, above the consensus estimate of $51.27 billion.

Microsoft shares fell 4% in extended trading despite reporting robust earnings and revenue, as investors focused on increased spending. On a GAAP basis diluted earnings per share were $5.16, up 60%. On a non-GAAP basis, EPS was $4.14, an increase of 24% (up 21% in constant currency). The company’s non-GAAP results exclude the impact of investments in OpenAI.

IBM climbed 8% after the company beat consensus expectations on both revenue and earnings. The company reported Q4 earnings per share of $4.52, which was $0.23 above the analyst estimate of $4.29. Revenue for the quarter was $19.7 billion versus the consensus estimate of $19.22 billion.

ServiceNow fell 6% in after-hours trading even though results were described as solid, with investor concern lingering about how artificial intelligence could affect future performance. The company also announced a partnership with Anthropic to incorporate Claude AI models into its platform for application development and business processes.

Las Vegas Sands dropped 10% after-hours despite reporting quarterly results that beat estimates for both EPS and revenue, as weakness in its Macao operations weighed on sentiment. Macao adjusted property EBITDA for the period was $608 million.

Joby Aviation's shares declined 11% after the company revealed plans for offerings of $1 billion in stock and convertible notes.

United Rentals fell 6% following results that missed expectations. The company reported Q4 EPS of $11.09, which was $0.69 below analysts' estimate of $11.78. Revenue for the quarter totaled $4.21 billion versus the consensus estimate of $4.24 billion.


Market context

The after-hours session reflected a mix of investor responses to a combination of guidance beats, spending increases and region-specific performance shortfalls. Technology names showed bifurcated moves tied to guidance and investment plans, while leisure, aviation and equipment rental stocks reacted to regional earnings and capital-raising announcements.


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Risks

  • Increased spending for technology firms may pressure near-term stock performance despite top-line strength - relevant to the technology sector and investors focused on profit margins.
  • Regional performance shortfalls can outweigh company-level beats, as weak Macao results weighed on Las Vegas Sands despite an overall earnings beat, impacting the leisure and casino sector.
  • Capital raises and planned offerings, such as Joby Aviation's $1 billion in stock and convertible notes, can trigger sharp share-price declines and add financing risk for aviation and early-stage transportation companies.

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