Alcoa Corporation (NYSE: AA) experienced a significant pre-market plunge of 5.10% on Friday, as the stock retreated despite the company reporting stronger-than-expected quarterly results.

The metals producer posted fourth-quarter revenue of $3.45 billion and adjusted EPS of $1.26, both exceeding analyst consensus estimates. The performance was aided by higher aluminum prices and the recognition of CO₂ compensation in Spain and Norway.

However, investor sentiment turned negative following the company's outlook for the first quarter of 2026. Alcoa projected sequential headwinds, including an approximately $30 million decline in the Alumina segment's adjusted EBITDA and an about $70 million drop in the Aluminum segment's adjusted EBITDA. These projections reflect higher costs from smelter restarts and the absence of prior-period benefits.

Adding to the pressure, multiple analysts revised their price targets downward. BMO Capital lowered its target to $65 from $67, while Wells Fargo cut its target to $64 from $71, citing concerns over the company's near-term profitability outlook despite the solid quarterly performance.