Earnings season is the heartbeat of the market, and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session: the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether itβs a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the top beats from the S&P 500 π
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Tuesday's top beat came from the $9.6B dialysis services provider, DaVita $DVA. After crushing expectations across the board, shareholders were rewarded with a remarkable +9.76 reaction score. This was one of the highest reaction scores we've seen all earnings season.
In the report, DVA posted revenues of $3.62B, beating the expected $3.51B, and earnings per share were $3.40, above the expected $3.24.
We also saw big beat/beat/pops from two of the largest pharma stocks, Merck $MRK and Pfizer $PFE.
And the $370 software giant Palantir $PLTR posted another blockbuster earnings report and rallied nearly 7%.
Here are the bottom beats from the S&P 500 π
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Tuesday's bottom beat came from the $38.6B credit services stock, PayPal $PYPL. After missing headline expectations across the board, shareholders suffered a -6.79 reaction score.
PYPL reported revenues of $8.68B, below the expected $8.79B, and earnings per share of $1.23, missing the expected $1.29.
And unlike MRK and PFE, Amgen $AMGN was punished for its double beat.
Let's talk about what else happened π
DVA had its best earnings reaction everπ₯
DaVita had a +21.2% post-earnings reaction, and here's what happened:
The company's integrated kidney care segment delivered its first profitable year, ahead of schedule, driven by improved patient outcomes and operational efficiency.
Revenue per treatment, a key performance indicator, grew 4.7% year-over-year to $422.60.
In addition to the blockbuster report, the management team issued strong forward guidance.
Since peaking in early 2025, DaVita has faced relentless selling pressure and has fallen by more than 40%.
Ahead of the report, the stock looked poised to get blasted ever lower.
Instead, they released an incredible report and blew the market's socks off. This resulted in the best earnings reaction ever in DaVita's 30 years as a publicly traded company.
In addition to the significant change in earnings sentiment, the technicals turned positive.
As you can see on the chart, DVA reclaimed the volume-weighted average price anchored to the all-time high. So long as the price holds above this level, the buyers are in control, and the path of least resistance is higher for the foreseeable future.
PYPL had its worst earnings reaction since Q1 2022π»
PayPal had a -20.3% post-earnings reaction, and here's what happened:
Venmo revenue accelerated to $1.7B, up ~20% year-over-year, while active accounts and engagement metrics continued to show momentum.
Effective March 1, Enrique Lores will be serving as President and CEO of the company.
The company announced a new quarterly cash dividend of $0.14/share, with the intent to continue quarterly dividends.
This company continues to disappoint the market, and shareholders are paying the price.
Since peaking in the summer of 2021, the stock has cratered by over 85% to the lowest level since 2017.
And given the clear primary downtrends in fundamentals and technicals, we see no reason for the bleeding to end here.
We expect PYPL to retest its 2016 lows.
Stay safe out there,
-The Beat Team
P.S. Due to popular demand, Steve Strazza is going live again this Thursday at 2 am ET to answer your questions about his new Beat Report research.
Whether you made it to last week's event or not, this event will be must-see TV on Stock Market TV.
