It’s been a generally successful earnings season for most of the market, as EPS figures remain strong and analysts continue to raise estimates. But not everyone is joining the party.

Earnings reports from the following five companies appeared to be strong at first, but all five stocks dropped after reporting. In fact, all posted numbers above the estimates for either earnings per share (EPS) or revenue.

However, it wasn’t the print that sent these stocks plummeting; it was the guide. And digging deeper into the numbers reveals a particular pain point in each reporting company’s guidance.

Today, we’ll look at five earnings season losers and use the Benzinga Edge Momentum Score to explain why their stocks likely have more downside ahead.

Reddit Inc.

Benzinga Edge Momentum Score: 24.16

Social media platform Reddit (NYSE:RDDT) released its Q2 2026 results on July 30 and smashed both the bottom and top lines. Revenue grew more than 60% year-over-year (YoY) for the eighth consecutive quarter, and guided $860 million in Q3 revenue, which would bring the streak to nine.

But the stock dropped more than 20% on the release, and U.S. user growth is the red flag waving. Active U.S. Reddit users are the most lucrative batch of clients the company reaches, and this is where growth has stagnated. Daily active unique U.S. users (DAUq) declined to 53.2 million from 53.5 million, and the number of logged-in U.S. users (i.e., the ones posting and clicking on ads) hasn’t grown in five straight quarters.

Stagnating user growth means Reddit needs to extract more and more cash from each user to maintain its revenue expansion, and the market has now drastically repriced that business model.

RDDT shares had been leaning on the 50-day moving average for support, but that level was broken following the Q2 2026 earnings release. The stock now trades below both key moving averages, with the Relative Strength Index (RSI) below 50 and the Moving Average Convergence Divergence (MACD) line dipping below the histogram. These signals hint that more downside likely remains in RDDT shares.

Papa John’s International Inc.

Benzinga Edge Momentum Score: 4.30

The worst Q2 2026 report of our selections came from Papa John’s (NASDAQ:PZZA) on August 6th, which narrowly beat EPS and revenue estimates. But these narrow beats came from a very low base. Total revenue fell more than 8% YoY, and North American comp sales dropped 8.3%, more than offsetting the 1.5% YoY gain in international comps.

Full-year 2026 revenue and EPS guidance were cut, and the company suspended its dividend heading into Q3. This three-pronged disaster sent the stock down nearly 18% in a single session, and the decline has only gotten worse since.

The 50-day SMA’s strong resistance was a warning sign heading into earnings, and the poor report has sent shares lower than the Earth’s crust. The RSI and MACD have reached severe oversold territory, suggesting a short-term bounce is ahead. But the fundamentals for Papa John’s are rapidly deteriorating, and analysts have been quick to cut price targets on the beleaguered pizza chain. 

AppLovin Corp.

Benzinga Edge Momentum Score: 7.04

AppLovin (NASDAQ:APP) hasn’t made many appearances in the losers’ circle lately, but its Q2 2026 report is where valuation finally caught up to the software startup. Despite YoY growth of over 52%, the company reported its first revenue miss since Q1 2025. GAAP EPS came in ahead of estimates, but adjusted EBITDA also missed due to weaker-than-expected margins.

A small miss can still be massive for a company with a stock trading at 20 times sales, and APP shares received a 20% haircut in the sessions following the release. 13 different firms cut price targets following the release, and Wells Fargo and Piper Sandler both downgraded the stock from Buy to Neutral.

The trend is no longer your friend on the APP chart. Support at the 50-day SMA had been surrendered weeks ago, and the downturn is intensifying. The RSI is hovering just above the oversold threshold of 30, and the MACD is tilting heavily bearish, indicating sellers are firmly in control.

Altria Group Inc.

Benzinga Edge Momentum Score: 39.96

Altria Group (NYSE:MO) has the highest momentum score of our entrants, but that didn’t stop the stock from getting smoked post-earnings. The EPS of $1.48 missed the anticipated $1.50, and despite solid revenue, the stock dipped more than 8% on the day of the Q2 2026 report.

A less than 2% EPS miss doesn’t usually trigger such a large decline from a large-cap consumer staple, but the volume is the reason for concern here. High commodities prices have caused smokers to trade down to discount offerings, and the Marlboro brand’s retail share fell 150 basis points YoY.

Tradedowns limit the amount that pricing can offset volume declines, and the stock’s lofty performance in 2025 and the first half of 2026 left little room for any error.

The 50-day SMA had been a healthy support level for MO shares, but that line has now been broken, and it’s taking other indicators with it. The RSI is now firmly below the bullish threshold of 50, and the MACD line has plummeted below the histogram following a bearish cross.

The next key area to hold is the 200-day moving average; a decline below that level could erase much of the stock’s YTD gain.

T-Mobile US Inc. 

Benzinga Edge Momentum Score: 10.34

T-Mobile (NASDAQ:TMUS) is another company where good headline numbers obscured a volume problem. The company reported Q2 2026 results on July 23 and easily surpassed EPS expectations (albeit paired with a slight revenue miss).

But the problem was subscriber growth. Postpaid net accounts declined 13% YoY to 277,000, and management projects a further decline to 250,000 in Q3 as the company starts raising prices. The stock fell more than 10% following the release, and has now lost nearly 30% of its value in the last 12 months.

TMUS shares showed clear signs of a technical drawdown long before the Q2 2026 numbers went live. The 50-day SMA has stonewalled the bulls at nearly every turn in the last few months, and the MACD line is now back below the histogram following a brief upturn. The RSI is also back under 50, giving this stock plenty of bearish momentum heading into a quarter where management has already tempered expectations.