Datadog and FIS shares fall on cautious outlooks
Datadog and FIS shares plunged despite solid growth, as investors reacted to slower-than-expected momentum and stagnant revenue forecasts. In contrast, McDonald's and Booking Holdings rose on resilient sales and buyback activity.
Datadog shares fell 14% after Q3 growth of 35% and raised annual targets, due to a Q4 outlook suggesting slower momentum than expected. FIS, a bank software provider, dropped over 20% after lowering its annual forecast and projecting stagnant revenue for 2027. In contrast, McDonald's rose 6% as US comparable sales fell only 0.2% due to higher spend per guest, beating fears. Booking Holdings reported 8% higher adjusted net income and 17% higher EPS in Q3, driven by $9.9 billion in share buybacks since the start of the year, reducing share count by 7.5%. The company expects only 1-3% growth in overnight stays for Q4 due to the Middle East conflict and high flight costs. Novo Nordisk shares briefly gained 5% after revising its 2026 adjusted revenue and operating profit forecast to a range of -2% to +2%, a slight improvement from previous guidance, though the stock remains down 14% year-to-date.