U.S. stock futures inched higher early Wednesday, buoyed by a wave of upbeat corporate earnings that helped offset lingering concerns over oil prices, geopolitical tensions in Iran, and the heavy capital spending tied to artificial intelligence. Investors are now turning their attention to the Federal Reserve's upcoming policy decision and a slate of megacap tech earnings due later in the day.
HSBC upgraded its stance on U.S. equities to "overweight" from "neutral," citing the strength of first-quarter earnings. The bank noted that 84% of reporting companies have beaten Wall Street forecasts, beating estimates by an average of 12%, and highlighted $430 billion in announced S&P 500 buybacks so far this year.
Seagate Technology Surges on Strong Guidance
Seagate Technology (STX) shares jumped about 16% in extended trading after the data-storage company forecast fourth-quarter revenue of $3.45 billion (plus or minus $100 million), well above the consensus estimate of $3.16 billion. The company also guided adjusted earnings per share of $5, topping the Street's $3.97 forecast. For the fiscal third quarter, Seagate reported revenue of $3.11 billion, a GAAP gross margin of 46.5%, and free cash flow of $953 million. CEO Dave Mosley described the results as the start of a "new era of structural growth" driven by surging data and storage demand from AI applications. The positive outlook also lifted shares of Western Digital (WDC), SanDisk (WDC), and Micron Technology (MU).
Bloom Energy Raises Outlook After Revenue Surge
Bloom Energy (BE) delivered another AI-fueled earnings beat, with first-quarter revenue jumping 130.4% to $751.1 million. The fuel-cell company raised its full-year 2026 revenue outlook to a range of $3.4 billion to $3.8 billion. CEO KR Sridhar said Bloom is emerging as a "go-to choice" for on-site power, but the stock's lofty valuation and rapid recent run-up add risk.
Coca-Cola Lifts Profit Forecast
Coca-Cola (KO) raised its full-year comparable EPS growth outlook to 8%-9% from 7%-8% after first-quarter results beat expectations. Revenue came in at $12.47 billion, with adjusted EPS of 86 cents, both above LSEG estimates. Volumes rose 3%, outpacing a 2% price increase, and organic revenue jumped 10%. The beverage giant's resilience in the face of rising oil and packaging costs makes it an attractive defensive pick.
General Motors Boosts Outlook Despite Tariff Headwinds
General Motors (GM) raised its 2026 core profit forecast to a range of $13.5 billion to $15.5 billion after posting $4.3 billion in first-quarter EBIT. However, the automaker warned that tariffs could shave $2.5 billion to $3.5 billion off profit this year. CEO Mary Barra cited the Iranian conflict as her top concern due to higher commodity and shipping costs. JPMorgan analyst Ryan Brinkman credited GM for raising guidance amid "significant uncertainty and volatility."
Megacap Tech Earnings Awaited
Later Wednesday, Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Meta (META) are all set to report results, putting the spotlight on whether the nearly $600 billion combined AI spending will translate into cloud and ad revenue growth. The evolving Microsoft-OpenAI relationship—where OpenAI can now seek other cloud providers—adds uncertainty. D.A. Davidson analyst Gil Luria called the new agreement "essential" to OpenAI's enterprise ambitions. Traders are watching closely for signs of a return on that massive capital expenditure.
