Steelcase (SCS) shares tumbled 5.84% in after-hours trading on Wednesday following the release of its first-quarter fiscal 2026 results and second-quarter guidance. The office furniture maker's stock decline came despite beating analyst expectations for the first quarter, as investors focused on the company's lower-than-expected earnings outlook for the upcoming quarter.

For the first quarter, Steelcase reported adjusted earnings per share of $0.20, surpassing the analyst consensus estimate of $0.13. Revenue for the quarter came in at $779 million, also beating the expected $762.4 million. However, the company's guidance for the second quarter fell short of market expectations. Steelcase forecasts Q2 adjusted EPS between $0.36 and $0.40, below the consensus estimate of $0.41. The company also projected Q2 revenue in the range of $860 million to $890 million.

Adding to investor concerns, Steelcase's international segment showed signs of weakness. The company reported a decline in international revenue from $797 million in fiscal year 2023 to $703 million by the trailing four quarters of fiscal year 2025. More alarmingly, the adjusted operating loss margin for the international segment worsened from -0.8% in FY23 to -2.2% in FY25 TFQ. This deterioration in international performance, coupled with the softer-than-expected earnings guidance, likely contributed to the sharp after-hours sell-off in Steelcase shares.