Morning movers: ServiceNow gains 8% as Rollins falls 15%

The separate July 23 morning read has the macro backdrop, including oil and the first read on Alphabet and Tesla. This brief stays with three company-specific earnings reactions that were visible before the opening bell.

Movers at 5:58 a.m. ET

ServiceNow: a clean beat gets a relief rally

ServiceNow reported second-quarter revenue of $3.99 billion, up 24% from a year earlier and above the $3.93 billion consensus cited by Yahoo Finance. Adjusted earnings were $0.90 per share, also ahead of the roughly $0.85–$0.86 consensus range reported by Benzinga and Yahoo. The company also nudged its full-year subscription-revenue outlook higher.

The regular-session watch is whether NOW can hold the $100 area, the bottom of its early pre-market range, and whether volume remains strong after the opening auction. Options do not trade pre-market; any implied-volatility crush or spread quality has to be checked after 9:30 a.m. ET rather than inferred from stale closing quotes. The main risk is that the relief move fades if investors refocus on margin compression instead of growth.

STMicroelectronics: strong growth, but the bar was higher

STMicroelectronics reported Q2 net revenue of $3.49 billion, up 26.0% year over year, with a 34.8% gross margin. Management's midpoint for Q3 calls for $3.70 billion of revenue and a 37.0% gross margin. It also raised its 2026 data-centre revenue ambition to above $1 billion, citing demand tied to AI data centres, but the shares still sold off sharply. That gap between good headline growth and a negative tape reaction suggests investors had priced in an even stronger mix or margin trajectory.

Watch whether the stock can reclaim $60 after the open and whether management commentary clarifies the margin bridge into the second half. The wheel angle is secondary here: STM's ADR options can be less forgiving than mega-cap chains, and the earnings move can make displayed premiums look attractive while bid-ask spreads remain poor. The key risk is that stronger AI-related demand does not offset weaker product mix or restructuring costs quickly enough.

Rollins: revenue grows, but margins tell the story

Rollins posted Q2 revenue of $1.079 billion, up 7.9%, while organic revenue rose 5.7%. Operating margin fell 110 basis points to 18.7%. Management said parts of residential pest control that depend on search, digital media and inbound calls saw weaker lead volume, and that its cost structure had been positioned for stronger peak-season growth. Those comments explain why a quarter with higher revenue and EPS still drew a harsh reaction.

The company's earnings call is scheduled for 8:30 a.m. ET. Listen for evidence that July's lead-volume improvement is broad and durable, and for concrete actions to align costs with slower residential demand. A recovery above $38 would pull the stock back into its early range; failure to hold $36.60 would show that sellers still control price discovery. The main risk is a longer consumer slowdown that keeps margins under pressure.

Also on the radar

• GOOGL: about 4% lower before the open as investors weighed a higher AI capital-spending forecast; the full earnings context is already in today's morning read.
• TSLA: about 5.8% lower after mixed Q2 results and a capital-spending surge; it is also covered in today's morning read.
• SMCI: roughly 1.1% higher pre-market after Wednesday's 19.8% regular-session jump; no fresh Thursday catalyst cleared the feature bar.
• T: about 0.5% higher pre-market after Wednesday's earnings-led gain; without a new development, it stays off the featured list.

What to watch today

• 8:30 a.m. ET — Rollins Q2 earnings call and management's detail on residential lead volume and costs.
• 9:30 a.m. ET — cash-market open; re-check all three moves, volume and spreads after the opening auction.
• After the open — watch whether NOW holds $100, STM reclaims $60, and ROL stays inside or breaks its $36.60–$38.00 early range.