In the first quarter of 2026, several companies that carried lukewarm or outright negative analyst ratings delivered earnings results that dramatically exceeded expectations. In many cases, the market was caught flat-footed.
That matters because earnings surprises tend to have the biggest impact when expectations are already low. When investors and analysts expect little from a company, strong results can force a rapid reassessment of its prospects, often leading to significant stock gains.
According to research from finance professor Odhrain McCarthy of New York University Abu Dhabi, stocks that report positive earnings surprises despite negative analyst sentiment often continue outperforming long after the earnings report is released.
Here are seven stocks that Wall Street largely doubted, but whose latest earnings results suggest investors may want to take a second look.
Why Low Expectations Can Create Big Opportunities
Positive earnings surprises have become common. In fact, 85% of S&P 500 companies beat analyst earnings estimates during the first quarter, according to FactSet.
That statistic highlights a growing problem for investors. If nearly every company beats estimates, then beating expectations no longer carries much meaning.
The exceptions are companies that analysts already dislike.
When a poorly rated stock suddenly reports earnings far above expectations, investors often need time to adjust their assumptions. That delayed reaction can create what researchers call post-earnings announcement drift, where stocks continue rising weeks or even months after the earnings report.
The following seven companies fit that profile.
Arrow Electronics Delivered One of the Biggest Surprises of the Quarter
Arrow Electronics shocked analysts with an earnings surprise of 83%.
The technology distributor has struggled to generate enthusiasm on Wall Street amid concerns about slowing enterprise technology spending and supply chain normalization. Yet the company produced results far stronger than expected.
With a market capitalization of roughly $11 billion, Arrow’s performance demonstrates how quickly investor sentiment can shift when actual profits exceed forecasts by such a wide margin.
For investors searching for overlooked technology names, Arrow’s earnings report could signal improving business conditions that analysts failed to anticipate.
AES Corp Defied Utility Sector Skepticism
AES Corporation posted an earnings surprise of 82.1%, nearly matching Arrow Electronics.
Utilities are rarely associated with dramatic earnings surprises, which makes AES’s results especially notable.
Investors have remained cautious about power producers due to interest rate concerns and the capital-intensive nature of the business. However, AES continues benefiting from growing electricity demand, renewable energy projects, and expanding infrastructure investments.
If energy demand linked to artificial intelligence data centers continues growing, utility operators such as AES could remain in focus throughout the year.
CarMax Proved Consumers Are Still Spending
CarMax reported earnings that exceeded expectations by 48.3%.
Many analysts expected higher interest rates and affordability challenges to continue weighing on vehicle sales. Instead, CarMax demonstrated resilience in both demand and profitability.
The used vehicle market remains an important economic indicator because it reflects consumer confidence and household purchasing power.
CarMax’s strong results suggest that consumers may be holding up better than many economists expected.
Qorvo Benefited From Improving Tech Demand
Qorvo surprised Wall Street with earnings 40% above expectations.
The chipmaker has spent much of the past two years navigating weakness in smartphone demand and concerns about global electronics sales. Those worries helped drive analyst ratings lower.
Yet Qorvo’s latest report indicates demand conditions may be stabilizing.
With artificial intelligence spending continuing to reshape the semiconductor industry, investors are watching closely for signs that broader chip demand is improving beyond the largest AI-focused companies.
Qorvo’s earnings beat could be an early indication of that trend.
Kenvue Quietly Delivered Strong Results
Kenvue generated an earnings surprise of 22%.
The maker of household health and wellness brands has often been overshadowed by higher-growth sectors such as technology and artificial intelligence.
However, defensive consumer healthcare businesses can become attractive when economic uncertainty rises.
Kenvue’s strong quarter suggests management may be executing better than analysts expected, while its portfolio of established brands continues generating stable cash flow.
For conservative investors, that combination can be appealing.
HP Shows There Is Still Life in Legacy Technology
HP Inc. exceeded earnings expectations by 21%.
Many investors have largely written off traditional PC manufacturers as slow-growth businesses facing long-term challenges.
Yet HP continues generating substantial profits and cash flow while benefiting from periodic refresh cycles in both consumer and enterprise markets.
The company’s earnings beat suggests demand may be stronger than expected, particularly as businesses invest in upgraded hardware to support new software and AI-powered tools.
HP’s performance serves as a reminder that older technology companies can still produce meaningful shareholder value.
Moderna’s Earnings Beat May Surprise the Most Investors
Moderna delivered earnings that came in 14.2% above expectations.
