Stock Movers: Deere Disappoints, Urban Outfitters Beats, Dell Gains on AI Servers

Deere's Weak Outlook

• 🚜 Deere shares fell about 5% after releasing net income guidance for the current fiscal year that was well below Wall Street's estimates.
• 📉 The tractor maker's guidance of $4 to $4.75 billion fell short of the $5.3 billion expected by analysts, despite fiscal fourth-quarter sales and revenues topping estimates.
• 🌾 Farmers have faced a tough year due to low crop prices and uncertainty surrounding US trade policies, though a recent breakthrough in US crop shipments to China offers some hope.
• 🗓️ Deere's CEO indicated that 2026 is expected to mark the bottom of the large equipment cycle, but the immediate outlook remains weaker than anticipated.

Urban Outfitters' Strong Performance

• 🛍️ Urban Outfitters shares jumped nearly 20% in pre-market trading following strong third-quarter sales that exceeded analyst expectations.
• 📈 The apparel company's namesake brand, along with Anthropologie stores, contributed to the robust results, aligning with a trend of consumers showing up for events like back-to-school shopping.
• 🛒 This positive performance from Urban Outfitters follows similar strong reports from peers like Abercrombie and Fitch, signaling continued consumer spending around key shopping periods.

Dell's AI Server Growth

• 💻 Dell Technologies raised its annual projection for the year, significantly benefiting from its AI server business.
• 🚀 The company shipped over $5 billion worth of AI machines and booked $12 billion in orders in the prior quarter, increasing its shipment projections from $20 billion to $22.5 billion.
• 📈 Dell's shares saw a 3% increase in pre-market trading due to this strong performance in the AI sector.

Hewlett Packard and Zscaler Challenges

• 🖨️ Hewlett Packard shares declined about 5% due to struggles with higher memory prices and a profit outlook that fell short of estimates.
• ✂️ The company also announced plans for 4,000 to 6,000 job cuts by the end of 2028, aiming to leverage AI tools to reduce headcount and mitigate the impact of rising memory costs.
• 🔒 Zscaler, a cybersecurity company, saw its shares drop 7% despite reporting fiscal first-quarter results well above forecasts and raising its guidance.
• 📊 Analysts noted that the raise in full-year outlook was not as strong as the quarterly beat, signaling potential weakness in the coming quarters.