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Claire Yubin Oh2h

Rocket Companies rises on Q4 earnings beat and strong Q1 2026 guidance

Rocket Companies posted Q4 earnings that beat Wall Street expectations and offered a strong Q1 2026 outlook late Thursday, pushing shares up around 6% in premarket trading on Friday.

For the quarter ended December 31, 2025, the Detroit-based fintech platform reported:

Revenue of $2.69 billion, ahead of analyst estimates of $2.27 billion (per data compiled by Bloomberg).
Adjusted earnings per share of $0.11, up 75% year over year and beating expectations of $0.09.

After saying that “Rocket proved itself this quarter as a category of one,” CEO Varun Krishna commented in a press release that “we exceeded guidance in a quarter that closed out a transformational year. I’m so proud of how the Rocket, Mr. Cooper, and Redfin teams executed together.”

Indeed, Rocket shared that after closing its Redfin acquisition in July 2025, the latter had realized $140 million in expense synergies in less than half a year.

The homeownership services company also expects adjusted revenue in the first quarter in the range of $2.6 billion to $2.8 billion, again beating Wall Street projections of $2.26 billion.

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Matt Phillips46m

Dell shares hold post-earnings gains as analysts applaud “exceptional beat+raise”

Dell’s across-the-board beat of key earnings metrics delivered after the close of trading Thursday is receiving rave reviews from Wall Street analysts.

Here’s a smattering of the chatter, much of which focused on Dell’s surprising ability to pass through an parabolic price surge in memory chip prices to customers:

Bernstein Research: Management highlighted record AI server orders of $34.1B and $9.5B of AI server shipments, exiting the quarter with a record $43B AI backlog. Importantly, Dell characterized enterprise as the fastest growing portion of AI portfolio and pipeline, with enterprise AI up both in absolute dollars and as a mix for both shipments and orders, supported by a growing customer base of 4,000+ AI customers and expanding use cases beyond early pilots.

Mizuho: Key points: 1) Fiscal 2027 AI server revenues guided up 100% y/y to ~$50B (WELL ABOVE consensus ~$36B), 2) Memory cost impact limited with AI Server operating margin reiterated at mid-single-digit percentage better than feared, with margins stabilizing post-Jan price increases.

Citi: An exceptional beat+raise. 4Q revenues upsided expectations (+39% year-over-year) exceeding the top end of their guide while EPS was also higher (+45% year-over-year) on higher margins. Guide also significantly upsided expectations fiscal 2027 estimated revenue up ~25%+, AI revenues to double (core server/storage MSD, CSG 1%) and EPS up 26%, with gross margins ex-AI showing improvement.

Barclays: Infrastructure Solutions Group (ISG) growth was significant - up 73% year-over-year reaching a record $19.6B revenue in the Q, marking eight consecutive quarters of double digit growth. Management expects the strong growth momentum to continue and guided to a doubling of ISG revenues in Q1. AI servers growth accelerated tremendously with $34B of AI server orders in Q4 (up from $12B the prior Q), leading to a total of $64B orders for the fiscal year, which represents a 6x increase year-over-year.

Morgan Stanley: Our fiscal 2027 EPS estimate of $10.97 remains well below management's $12.90. Why? Because we struggle to conceptually understand how - excluding AI servers - DELL can significantly increase prices multiple times through the year, drive over 200 basis points of year-over-year gross margin expansion, and see limited demand elasticity. That's what the guidance implies.

Dell soars after beating expectations for Q4 sales and EPS

Bernstein Research: Management highlighted record AI server orders of $34.1B and $9.5B of AI server shipments, exiting the quarter with a record $43B AI backlog. Importantly, Dell characterized enterprise as the fastest growing portion of AI portfolio and pipeline, with enterprise AI up both in absolute dollars and as a mix for both shipments and orders, supported by a growing customer base of 4,000+ AI customers and expanding use cases beyond early pilots.

Mizuho: Key points: 1) Fiscal 2027 AI server revenues guided up 100% y/y to ~$50B (WELL ABOVE consensus ~$36B), 2) Memory cost impact limited with AI Server operating margin reiterated at mid-single-digit percentage better than feared, with margins stabilizing post-Jan price increases.

Citi: An exceptional beat+raise. 4Q revenues upsided expectations (+39% year-over-year) exceeding the top end of their guide while EPS was also higher (+45% year-over-year) on higher margins. Guide also significantly upsided expectations fiscal 2027 estimated revenue up ~25%+, AI revenues to double (core server/storage MSD, CSG 1%) and EPS up 26%, with gross margins ex-AI showing improvement.

Barclays: Infrastructure Solutions Group (ISG) growth was significant - up 73% year-over-year reaching a record $19.6B revenue in the Q, marking eight consecutive quarters of double digit growth. Management expects the strong growth momentum to continue and guided to a doubling of ISG revenues in Q1. AI servers growth accelerated tremendously with $34B of AI server orders in Q4 (up from $12B the prior Q), leading to a total of $64B orders for the fiscal year, which represents a 6x increase year-over-year.

Morgan Stanley: Our fiscal 2027 EPS estimate of $10.97 remains well below management's $12.90. Why? Because we struggle to conceptually understand how - excluding AI servers - DELL can significantly increase prices multiple times through the year, drive over 200 basis points of year-over-year gross margin expansion, and see limited demand elasticity. That's what the guidance implies.

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Block soars after announcing 40% workforce cut amid AI push

Block, the payments and fintech firm led by Twitter co-founder Jack Dorsey, is up almost 20% in premarket trading, after announcing plans yesterday to cut 40% of its 10,000-person workforce.

Alongside the layoff announcement, Block reported $6.25 billion in Q4 revenue, slightly ahead of expectations, while gross profit for the quarter grew 24% year on year. The company also raised its full-year guidance for both gross profit and operating income.

In a post on X, Dorsey said the decision wasn’t made because the company is in “trouble,” instead framing the move as a structural shift. Indeed, Block has invested heavily in internal AI tools, including launching its own system called Goose in early 2025. In a letter to shareholders, Dorsey said “a significantly smaller team” using these tools “can do more and do it better.”

Most of the layoffs will occur in Q1 and will be “substantially” completed by the end of Q2, with expected restructuring charges of approximately $450 million to $500 million, according to an SEC filing.

Block is the latest company to tie job cuts to AI in corporate America. Outplacement firm Challenger estimates roughly 55,000 US layoffs were attributed to the technology in 2025, almost 13x the level two years ago. Dorsey predicted that most companies “will reach the same conclusion and make similar structural changes” within the next year.

The company had more than tripled its headcount from the end of 2019 through 2022, with its number of employees rising from 3,845 to 12,428. When presented with this tidbit, Dorsey admitted on X that “yes we over-hired during covid because i incorrectly built 2 separate company structures.” Last year, Block spent roughly $68 million on an event for employees, which reportedly featured performances from T-Pain and Soulja Boy.

Despite the rally, Block remains more than 75% below its 2021 peak.

CoreWeave tumbles on higher than expected capex and plans to keep accelerating its investments

CoreWeave framed this higher capex as a positive, Wall Street and the market don’t seem to agree.

Cloud Based Artificial Intelligence Computing Company CoreWeave Has IPO On Nasdaq Exchange

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Max Knoblauch17h

Netflix declines to raise bid for Warner Bros., paving the way for Paramount to triumph

Netflix said Thursday evening that it was declining to increase its offer for Warner Bros. Discovery, effectively ending the streaming platform’s pursuit of the studio and ensuring that Paramount’s improved bid of $31 per share would emerge victorious.

Netflix is up almost 9% on the news in premarket trading on Friday, while Paramount is up more than 8%, too, as of 4:15 a.m. ET.

In a statement, Netflix co-CEOs Ted Sarandos and Greg Peters said “this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

The Warner Bros. Discovery board said Thursday afternoon that it had determined Paramount’s latest bid constitutes a superior proposal to the $83 billion agreement it has with Netflix.

Before Netflix’s announcement Thursday evening, the Netflix-Warner Bros. merger had remained in effect, and Netflix had a four-business-day window to amend its deal to match or beat Paramount’s. The streamer’s announcement effectively eliminates that waiting period and allow Paramount’s offer to move forward.

Netflix’s statement that it is pulling out of the race allows the Warner Bros. board to terminate its merger agreement with the streamer.

It had been reported that Netflix had ample cash to increase its offer for Warner Bros., but in not doing so, it appears that Netflix management saw its share price increase in the wake of Paramount boosting its bid, and took to heart the strong signal from its own investors that they weren’t exactly rooting for it to make the purchase.

Earlier on Thursday, Warner Bros.’ announcement boosted Paramount’s odds on prediction markets to end up in control of the company. As of 4:40 p.m. ET on Thursday, event contracts speculating on which company would ultimately come out on top of the bidding war had Paramount at a 62% chance over Netflix’s 33% odds.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

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Netflix Declines to Raise Offer for Warner Bros.

Netflx declines to raise offer for Warner Bros.

In a statement, Netflix co-CEOs Ted Sarandos and Greg Peters said “this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

The Warner Bros. Discovery board said Thursday afternoon that it had determined Paramount’s latest bid constitutes a superior proposal to the $83 billion agreement it has with Netflix.

Before Netflix’s announcement Thursday evening, the Netflix-Warner Bros. merger had remained in effect, and Netflix had a four-business-day window to amend its deal to match or beat Paramount’s. The streamer’s announcement effectively eliminates that waiting period and allow Paramount’s offer to move forward.

Netflix’s statement that it is pulling out of the race allows the Warner Bros. board to terminate its merger agreement with the streamer.

It had been reported that Netflix had ample cash to increase its offer for Warner Bros., but in not doing so, it appears that Netflix management saw its share price increase in the wake of Paramount boosting its bid, and took to heart the strong signal from its own investors that they weren’t exactly rooting for it to make the purchase.

Earlier on Thursday, Warner Bros.’ announcement boosted Paramount’s odds on prediction markets to end up in control of the company. As of 4:40 p.m. ET on Thursday, event contracts speculating on which company would ultimately come out on top of the bidding war had Paramount at a 62% chance over Netflix’s 33% odds.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

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Rocket Lab beats expectations on Q4 sales, per-share loss

Here’s how the numbers looked in the most recent quarter.

Rocket Lab CEO Interview on Neutron Rocket

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