Ten stocks fell heavily on Thursday, recording whopping double-digit declines while mirroring a broader market pessimism, as investors disposed of positions following dismal earnings and growth outlooks.
On Wall Street, the Dow Jones fell by 0.74 percent, the S&P 500 declined by 0.37 percent, and the Nasdaq dipped by 0.03 percent.
In this article, we name the 10 worst-performing stocks on Thursday and detail the reasons behind their lagging performance.
To compile the list, we focused on stocks with more than $2 billion in capitalization and 5 million shares in trading volume.
Photo by George Morina on Pexels
10. The Cigna Group (NYSE:CI)
The Cigna Group declined by 10.23 percent on Thursday to close at $267.38 apiece as investor sentiment was dampened by its flat earnings performance in the second quarter of the year.
In its updated report, The Cigna Group (NYSE:CI) said net income attributable to shareholders ended flat at $1.5 billion, despite total revenues increasing by 11 percent to $67.18 billion from $60.5 billion.
Higher revenues were driven by Evernorth Health Services and include growth of existing client relationships and strong specialty pharmacy growth.
In a statement, The Cigna Group (NYSE:CI) Chairman and CEO David Cordani said that the company’s performance in the second quarter reflects the disciplined execution and the strength of the group’s business mix.
“Listening, adapting, and innovating to meet the evolving needs of our patients, customers, and clients enables us to deliver meaningful value,” he noted.
9. International Paper Company (NYSE:IP)
International Paper extended its losses for a fourth straight day on Thursday, slashing 12.85 percent to close at $46.74 apiece after reporting a disappointing earnings performance in the second quarter of the year.
In the first six months of the year, International Paper Company (NYSE:IP) fell to a net loss of $30 million from a $554 million net income in the same period last year. Meanwhile, it registered a $75-million net income in the second quarter alone, albeit an 85-percent drop from $498 million in the same period last year.
Net sales for the six-month period, however, increased by 35 percent to $12.67 billion from $9.35 billion year-on-year, while net sales for the quarter grew by 43 percent to $6.77 billion from $4.73 billion.
“Our second quarter results reflect a full quarter of our combined International Paper and DS Smith packaging businesses, as we effectively implement 80/20 strategies,” said International Paper Company (NYSE:IP) CEO Andy Silvernail.
“In Packaging Solutions North America, our commercial efforts are driving increased revenue, and we experienced seasonally higher volumes and a stable demand environment. However, margins slipped as we continue to face cost headwinds, and we executed a heavy outage schedule. In Europe, demand remained soft and there was a significant increase in depreciation and amortization expense resulting from our acquisition,” he added.
Looking ahead, International Paper Company (NYSE:IP) posted a more optimistic outlook for the third quarter, but failed to provide target figures on key metrics.
8. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Anheuser-Busch dropped for a second day on Thursday, shedding 13.3 percent to close at $57.67 apiece as investor sentiment was dampened by declining volumes despite growing its earnings year-on-year.
In its updated report, Anheuser-Busch InBev SA/NV (NYSE:BUD) said that beer and non-beer volumes declined by 1.9 percent in the second quarter of the year at 143,347 versus 146,302 in the same period last year amid weak industries and performance in China and Brazil. The first half of the year also saw total volumes dipping 2 percent to 279,615 from 285,837 in the same comparable period.
Despite the volume drop, Anheuser-Busch InBev SA/NV (NYSE:BUD) still recorded a 13.8-percent jump in net income attributable to shareholders, to $1.676 billion from $1.472 billion in the same period last year, while revenues ended flat at $15 billion.
In the first half, attributable net income increased by 49 percent to $3.8 billion from $2.56 billion year-on-year, while revenues decreased by 4.3 percent to $28.6 billion from $29.88 billion.
7. Arm Holdings plc (NASDAQ:ARM)
Arm Holdings fell for a third straight day on Thursday, shedding 13.44 percent to close at $141.38 each as investors soured on its dismal earnings performance in the first quarter of fiscal year 2026.
In its earnings release, Arm Holdings plc (NASDAQ:ARM) said net income during the period declined by 42 percent to $130 million from $223 million in the same period last year. Total revenues, however, were higher by 12 percent at $1.05 billion versus $939 million.
Heading into the second quarter, Arm Holdings plc (NASDAQ:ARM) is targeting to hit a range of $1.01 billion to $1.11 billion in revenues, which could translate to a 19.67 percent to 31.5 percent jump from the $844 million registered in the same period last year.
“Arm is powering AI workloads everywhere with unmatched performance and energy efficiency,” Arm Holdings plc (NASDAQ:ARM) CEO Rene Haas said.
“Our Q1 FYE26 results exceeded $1 billion in revenue for the second straight quarter as royalties grew across all target end markets, demonstrating the strength of Arm as the AI platform of choice—from the cloud to the smallest edge devices,” he noted.
6. Comstock Resources, Inc. (NYSE:CRK)
Comstock Resources fell by 14.05 percent on Thursday to end at $17.87 apiece as investors took path from a pessimistic outlook and a lower price target from an investment firm.
In a market note, UBS further downgraded Comstock Resources, Inc. (NYSE:CRK) to a “sell” recommendation after lowering it to “neutral” on July 10. It also reduced its price target to $18 from $20 previously.
According to UBS, Comstock Resources, Inc. (NYSE:CRK) currently faces potential downside risks, including lower natural gas prices, underscoring an approximately 0.5 Bcfpd oversupplied balance that could cause risks due to its leverage position and low free cash flow generation.
In other news, Comstock Resources, Inc. (NYSE:CRK) swung to an attributable net income of $125 million from a $126 million net loss in the same period last year.
Total revenues surged by 90 percent to $270 million from $246.8 million year-on-year.
5. Shake Shack Inc. (NYSE:SHAK)
Shake Shack saw its share prices drop by 14.6 percent on Thursday to close at $120.34 apiece as investors were said to have soured on its weaker-than-expected outlook for full year 2025, shunning its strong earnings performance during the second quarter of the year.
In an earnings call, Shake Shack Inc. (NYSE:SHAK) announced targeting revenues of $1.4 billion to $1.5 billion, which would translate to a growth of 11 to 19.8 percent from the $1.252 billion revenues last year.
In the second quarter of the year, Shake Shack Inc. (NYSE:SHAK) registered a 77-percent jump in attributable net income at $17.15 million from $9.67 million in the same period last year. Total revenues increased by 12.6 percent to $356 million from $316 million year-on-year.
For the first half, attributable net income jumped by 83 percent to $21.4 million from $11.7 million, while revenues were higher by 11 percent to $677 million from $607 million.
4. ATI Inc. (NYSE:ATI)
ATI Inc. dropped its share prices by 18.36 percent on Thursday to close at $76.94 apiece as investor sentiment was dampened by missed revenue forecasts in the second quarter of the year.
In an updated report, ATI Inc. (NYSE:ATI) said attributable net income increased by 22.9 percent to $100.7 million from $81.9 million in the same period last year, as revenues grew by 4.1 percent to $1.140 billion from $1.095 billion year-on-year. Revenues, however, missed consensus forecasts by 1.72 percent, dragging down sentiment.
In the first half, attributable net income grew by 33 percent to $197.7 million from $148 million, while sales rose by 6.5 percent to $2.28 billion from $2.14 billion.
In other developments, ATI Inc. (NYSE:ATI) announced its expanded agreement with The Boeing Company for the supply of titanium materials to the latter and its subsidiaries.
Under the terms of the agreement, ATI will supply a comprehensive portfolio of high-performance titanium materials, including long products—such as ingots, billets, rectangles, and bars—and flat-rolled products, including plate, sheet, and coil.
3. Baxter International Inc. (NYSE:BAX)
Baxter International dropped its share prices to a new 52-week low on Thursday, as investors soured on its lower earnings growth forecast.
At intra-day trading, shares of Baxter International Inc. (NYSE:BAX) dropped to their lowest price of $21.47 before ending the day down by 22.42 percent at $21.76 apiece.
In a call with analysts, Baxter International Inc. (NYSE:BAX) said it lowered its adjusted EPS to between $2.42 and $2.52 from the $2.47 to $2.55. Analysts expected $2.52 per share.
“While we never want to lower expectations, our overall objective is reducing the outlook to capture more of the potential downside risks,” Baxter International Inc. (NYSE:BAX) CFO Joel Grade was quoted as saying, underscoring the demand weakness for IV fluids.
In the second quarter of the year, Baxter International Inc. (NYSE:BAX) swung to a net income attributable to shareholders of $91 million from a $314 million net loss in the same period last year. Net sales inched up by 4 percent to $2.8 billion from $2.69 billion.
2. Confluent, Inc. (NASDAQ:CFLT)
Confluent fell for a fourth consecutive day on Thursday, to touch a new low of $17.51 apiece, as investor sentiment was dampened by its lower-than-expected revenue for the second quarter of the year.
During the period, Confluent, Inc. (NASDAQ:CFLT) grew its total revenues by 20 percent to $282 million from $235 million in the same period last year, as subscription revenues increased by 21 percent to $270.8 million from $224.7 million. However, total revenues missed analysts’ consensus forecast by 2.69 percent.
In the same period, net loss also narrowed by 8.8 percent to $81.95 million from $89.9 million year-on-year.
In the first half, net loss shrank by 18.6 percent to $149.5 million from $183 million year-on-year, as total revenues grew 22 percent to $553 million from $452 million.
Looking ahead, Confluent, Inc. (NASDAQ:CFLT) expects subscription revenues to end between $281-$282 million, and to a range of $1.105 billion to $1.11 billion in the full-year period.
Earnings per share were also pegged at $0.09-$0.10 in the third quarter and at around $0.36 in the full year.
1. Align Technology, Inc. (NASDAQ:ALGN)
Align Technology fell to a new low on Thursday as investors sold off positions after missing earnings expectations and earning a lower price target and pessimistic rating from an investment firm.
In intra-day trading, Align Technology, Inc. (NASDAQ:ALGN) dropped to its lowest price of $127.7 before slight buying pushed the company’s share price higher to end the day just down by 36.63 percent at $129.01 apiece.
This followed mixed earnings performance during the quarter that saw the company record a non-GAAP net income of $181.1 million, flat from last year. GAAP net income, on the other hand, amounted to $124.6 million, or 29 percent higher than the $93.2 million in the same period last year.
Net revenues, on the other hand, dipped by 1.6 percent to $1.012 billion from $1.028 billion year-on-year.
In other developments, Mizuho reduced its price target for Align Technology, Inc. (NASDAQ:ALGN) to $210 from $245 previously, but maintained an “outperform” rating for the stock.
Mizuho’s revision followed reports about June trends, which fell short of expectations, despite the company’s hosting of an “upbeat analyst meeting” in May this year.
Additionally, the revision reflected the weaker-than-expected patient conversion rates despite iTero scans and Invisalign doctor case submissions appearing to remain on track.
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