S&P 500: The Winners and Losers of February 2026
After a modestly positive start to 2026, February brought a noticeable shift in tone. The S&P 500 slipped 0.87% for the month, closing at 6,879 on February 27. Year to date, the index remained slightly positive, but February was defined less by the headline move and more by sharp stock-level dispersion.
The spread between the best and worst performers was unusually wide, with gains near 50% at the top and losses exceeding 30% at the bottom. Below, we break down the biggest winners and losers of February and what drove those moves.
Top S&P 500 Performers of February 2026
Among the strongest performers were Texas Pacific Land, Corning, and DaVita. Each rallied for different reasons, but all had clear catalysts that reshaped investor expectations.
Texas Pacific Land ($TPL) +50.50%
Texas Pacific Land was February’s biggest winner, rising more than 50% as investors focused on both strong financial performance and emerging AI infrastructure potential.
The company reported fourth-quarter 2025 net income of $123.3 million on $211.6 million in revenue. For the full year, net income reached $481.4 million on $798.2 million in revenue, driven by higher oil and gas royalties, produced water royalties, water sales, and surface-related income.
Beyond fundamentals, the rally accelerated after attention turned to the company’s agreement with Bolt Data & Energy to explore large-scale data center development on its West Texas land. Reports indicated Bolt is chaired or co-founded by Eric Schmidt and has been in discussions with Google regarding potential data center deployments in the region.
The market began pricing in the possibility that Texas Pacific Land’s vast acreage in the Permian Basin could become strategically valuable for AI data center expansion, adding a new growth narrative to an already highly profitable royalty business.
Corning ($GLW) +45.65%
Corning surged nearly 46% in February, driven by its positioning in AI-related data center connectivity.
The key catalyst was a multi-year agreement with Meta Platforms valued at up to $6 billion to supply fiber-optic cables and related products for Meta’s expanding U.S. data center footprint. The deal runs through 2030 and includes plans to expand manufacturing capacity in North Carolina.
At the same time, Corning forecast first-quarter sales above analyst estimates, citing strong demand in optical fiber. As investors reassessed potential supply constraints in high-density networking and fiber infrastructure, Corning emerged as a direct beneficiary of accelerating data center construction.
Shares reached levels not seen since the dot-com era, reflecting growing confidence that fiber connectivity is a critical enabler of AI infrastructure expansion.
DaVita ($DVA) +42.95%
DaVita’s rally was driven by strong earnings and an improved outlook for 2026.
The company exceeded fourth-quarter expectations and forecast 2026 adjusted earnings per share of $13.60 to $15.00, above analyst estimates. Results were supported by steady dialysis demand and improving operating performance.
Management also highlighted a partnership with Elara to expand kidney-focused home-based care services, reinforcing longer-term growth initiatives.
In a month dominated by AI narratives, DaVita’s move showed that traditional earnings strength and forward guidance upgrades can still drive major outperformance even in a declining index environment.
Worst S&P 500 Performers of February 2026
The steepest declines came from EPAM Systems, CoStar Group, and Ares Management. These names were exposed to two major February themes: AI disruption concerns in software and valuation pressure in private credit and alternative asset managers.
EPAM Systems ($EPAM) −32.41%
EPAM fell more than 32% after issuing cautious forward guidance, despite reporting quarterly results that beat expectations.
The company guided for 2026 organic constant-currency revenue growth of 3% to 6%, below some investor expectations and slower than prior-year growth. Reported revenue growth guidance of 4.5% to 7.5% also suggested moderation.
The decline occurred amid broader fears that advances in generative AI could pressure traditional IT services and software development models. Even though EPAM did not report severe operational weakness, investors reacted negatively to the perceived slowdown.
In an environment already sensitive to AI-driven disruption, conservative guidance amplified selling pressure.
CoStar Group ($CSGP) −27.43%
CoStar dropped more than 27% following a weak outlook and mounting activist pressure.
The company forecast first-quarter revenue of $890 million to $900 million and adjusted earnings of 16 to 19 cents per share, both below analyst expectations. Continued heavy spending to scale its Homes.com residential platform weighed on margins.
At the same time, activist investor Third Point, led by Daniel Loeb, prepared a campaign pushing for strategic and board-level changes. D. E. Shaw also publicly criticized the company’s residential expansion strategy.
Investors questioned whether the aggressive investment in Homes.com would deliver sufficient returns, particularly in a more valuation-sensitive market environment.
Ares Management ($ARES) −25.16%
Ares declined more than 25% during February amid broader concerns in private credit and alternative asset management.
Although the firm reported strong fundraising and $622.5 billion in assets under management, investor sentiment deteriorated as stress emerged in parts of the private credit ecosystem. Market volatility surrounding Blue Owl Capital and broader liquidity concerns weighed on publicly traded alternative managers.
In addition, AI-related valuation concerns raised fears of second-order effects on private credit portfolios exposed to technology borrowers.
Even without company-specific negative news, Ares traded as a high-beta proxy for risk sentiment in private markets.
This article is for informational purposes only and is not investment advice or a solicitation to buy or sell securities. The content is based on publicly available information and reflects the author’s opinions as of the publication date, which may change without notice. All investments carry inherent risks, including the potential loss of principal, and past performance is not indicative of future results. Readers should conduct their own research or consult a financial advisor before making investment decisions. BBAE holds no position in the securities mentioned, nor are they compensated by the companies mentioned.
