Key Takeaways
- Delta Air Lines (DAL) reported Q1 2026 Adjusted EPS of $0.64, beating the analyst consensus of $0.57, though the company warned of a $2 billion increase in fuel expenses for the upcoming quarter.
- A "fragile" two-week ceasefire between the U.S. and Iran was announced by the Trump administration, leading to a 2% surge in the UK FTSE 100 and a tentative agreement to reopen the Strait of Hormuz.
- Kuwaiti air defenses intercepted 28 drones targeting vital oil and power infrastructure, reporting significant damage despite the broader regional truce.
- BofA Global Research raised its price target for Dell Technologies (DELL) to $205, while Barclays issued a double-downgrade for Coinbase Global (COIN) and lowered its outlook for Blue Owl Capital (OWL).
Delta Beats Earnings but Faces Massive Fuel Headwinds
Delta Air Lines (DAL) kicked off the airline earnings season with a beat on both the top and bottom lines for the first quarter of 2026. The carrier posted Adjusted EPS of $0.64 on Adjusted Revenue of $14.20 billion, surpassing Wall Street estimates of $0.57 and $14.08 billion, respectively. Passenger revenue remained strong at $12.30 billion, indicating resilient travel demand despite macroeconomic uncertainty.
However, the airline’s outlook for the second quarter is heavily clouded by surging energy costs. Delta Air Lines (DAL) expects an all-in fuel price of approximately $4.30 per gallon in Q2, leading to a projected $2 billion increase in fuel expenses. While the company sees a Q2 pre-tax profit of around $1 billion, management noted that the recent spike in fuel prices is currently impacting earnings, even with a $300 million benefit from its refinery operations.
Fragile US-Iran Ceasefire Jolts Global Markets
Geopolitical tensions saw a sudden, albeit tenuous, de-escalation as President Trump accepted a two-week ceasefire with Iran. Vice President JD Vance characterized the truce as "fragile," but confirmed that Iran has agreed to open the Strait of Hormuz to maritime traffic. Vance stated that the U.S. has "achieved military objectives" in the region and urged Iranian leadership to negotiate in good faith to avoid further consequences.
Despite the diplomatic breakthrough, the situation on the ground remains volatile. The Iranian Navy reportedly informed the Wall Street Journal that ships still require explicit permission to transit the Strait or risk destruction. Meanwhile, Kuwait reported an "intense wave" of 28 drone attacks targeting southern oil facilities and power plants, causing substantial infrastructure damage. In Iran, the Lavan oil refinery was also targeted, though the Oil Ministry reported no injuries or disruptions to fuel distribution.
Analysts Adjust Targets for Tech and Finance
In the corporate sector, BofA Global Research showed increased optimism for Dell Technologies (DELL), raising its price target to $205.00 from $172.00. The hike reflects continued strength in AI-driven infrastructure demand, which analysts believe will sustain Dell's growth through the fiscal year.
Conversely, Barclays took a more bearish stance on the crypto and private credit sectors. The firm downgraded Coinbase Global (COIN) to Underweight from Equal-Weight, slashing its price target to $140 from $148. Analysts cited a narrowing path to outperformance amid shifting market sentiment. Blue Owl Capital (OWL) also saw its target price reduced by Barclays to $9 from $11, following concerns over slowing inflows and rising redemptions in the private credit space.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.