After-hours trading saw dramatic moves driven by a flurry of major tech and travel earnings, revealing sharp investor reactions to growth trajectories and forward guidance.

Tech Titans Show Split Performance

• Microsoft tumbled almost 7% despite topping quarterly earnings and revenue estimates. The decline was fueled by slowing cloud growth and light operating margin guidance for the coming quarter, highlighting concerns over the pace of its AI monetization.

  

• Meta Platforms soared 9% after issuing strong first-quarter revenue guidance that significantly exceeded analyst expectations, overshadowing a larger-than-expected loss in its Reality Labs division.

• IBM jumped more than 7% on better-than-expected quarterly results, with CEO Arvind Krishna announcing the company's generative AI book of business has surpassed $12.5 billion.

• ServiceNow fell over 4% even after beating estimates, as the stock continues to face pressure from broader investor concerns that AI adoption may compress software company profitability.

Travel and Consumer Stocks React to Outlook

• Southwest Airlines rallied about 6% after forecasting 2026 profits well above expectations, citing benefits from its ongoing business model overhaul.

• Las Vegas Sands dropped 9% despite a quarterly beat, as revenue from its critical Macao operations only narrowly surpassed estimates.

• Levi Strauss slid 2% after its full-year earnings guidance came in slightly below Wall Street forecasts, dampening enthusiasm over its fourth-quarter beat.

Mixed Results for Tesla and Others

• Tesla gained 3% after reporting fourth-quarter results that exceeded expectations, though the electric vehicle maker recorded its first-ever annual revenue decline.

• International Business Machines was among the standout gainers, with its post-market surge reflecting strong performance in its software and infrastructure segments.