March 11 Stock Movers: Oracle (ORCL) Surges on Cloud Beat, AeroVironment Tumbles on Outlook

TLDR

• Oracle stock surged 10–11% following a strong Q3 performance that exceeded earnings and sales estimates, featuring 44% cloud revenue growth
• AeroVironment shares plunged nearly 10% after reporting disappointing earnings and lowering annual projections amid a $151M goodwill writedown
• Kosmos Energy declined 16% following the announcement of a share offering priced at $1.90 to generate $185M for debt reduction
• Nike shares advanced 1.8% on a Barclays upgrade to Overweight with a new price target of $73
• Diamondback Energy decreased 2.7% after revealing an 11 million share offering valued at approximately $1.96 billion

Equity futures traded in mixed territory Wednesday morning as market participants anticipated the newest U.S. consumer price index data. Crude oil climbed modestly, while select equities experienced notable price swings during premarket hours.

Oracle emerged as the session’s top performer. The stock rallied approximately 10–11% following the software giant’s third-quarter financial report that surpassed analyst projections for both profits and sales.

Oracle Corporation, ORCL

Total revenue increased 22% compared to the prior-year period. Cloud services revenue jumped 44%, infrastructure sales rocketed 84%, and Fusion Cloud ERP revenue expanded 17%.

Looking ahead to the fourth quarter of fiscal 2026, Oracle anticipates revenue expansion of 18–20% on a constant currency basis. This guidance points to approximately $18.93 billion to $19.24 billion, aligning with the Street’s consensus estimate of $19.11 billion.

Adjusted profit per share for the upcoming quarter is forecast between $1.92 and $1.96, modestly exceeding the analyst consensus of $1.93.

The enterprise software leader also upgraded its longer-term forecast. Management now projects fiscal 2027 revenue will hit roughly $90 billion, powered by sustained momentum in cloud operations.

AeroVironment Reduces Forecast Following Writedown

AeroVironment declined nearly 10% after disclosing a quarterly operational loss of $179 million. This represents a significant deterioration from the $3.1 million loss recorded in the corresponding quarter last year.

The expanded loss stemmed primarily from a $151.3 million goodwill impairment related to its space operations segment. The writedown followed a work suspension order on the U.S. Space Force’s SCAR contract.

Gross profit margin contracted to 24% versus 38% in the year-ago period. Management attributed the decline to an increased proportion of service-related revenue from the BlueHalo acquisition, coupled with elevated amortization and purchase accounting expenses.

The company revised its full-year 2026 revenue projection to $1.85 billion to $1.95 billion, down from the previous range of $1.95 billion to $2.0 billion. Adjusted profit per share is now expected at $2.75 to $3.10, considerably below the Street consensus of $3.24.

Chief Executive Wahid Nawabi emphasized that customer demand remains robust, attributing the revenue miss to timing-related factors.

Nike, Diamondback, and Kosmos Also Move

Nike climbed 1.8% to $57.07 after receiving an upgrade from Barclays to Overweight from Equal Weight. The investment bank simultaneously increased its price objective to $73 from $64.

Diamondback Energy retreated 2.7%, positioning it as the S&P 500’s weakest performer in premarket action. The energy producer disclosed an 11 million share offering by an existing stockholder, representing approximately $1.96 billion in value.

Kosmos Energy tumbled 16% to roughly $2.04 after announcing it priced an offering of 97.5 million shares at $1.90 per share. The transaction is anticipated to generate gross proceeds of approximately $185.25 million, earmarked for debt paydown.

Blue Owl Capital declined 0.6% and Ares Management lost 1% following media reports indicating JPMorgan Chase would impose restrictions on certain lending activities to private credit vehicles.

Ballard Power Systems advanced 7% after unveiling an agreement to provide 500 fuel cell engines to New Flyer, a division of NFI Group, with shipments commencing in 2026.

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