Markets are in the midst of the busiest week for third quarter earnings, with results from several Big Tech companies highlighting the calendar.
So far, the earnings season is off to a positive start. As of Oct. 24, 29% of S&P 500 companies have reported results, according to FactSet data, and analysts are expecting a 9.2% jump in earnings per share during the third quarter. If that figure holds, it would mark the ninth straight quarter of positive earnings growth but a deceleration from the 12% earnings growth reported in Q2 of this year.
Expectations were slightly lower coming into the quarter, as analysts expected S&P 500 companies to report a 7.9% jump in earnings per share during the third quarter.
This week, five of the “Magnificent Seven” tech companies — Microsoft (MSFT), Alphabet (GOOG), Meta (META), Apple (AAPL), and Amazon (AMZN) — representing about a quarter of the S&P 500 report results.
Other notable companies reporting updates this week include Boeing (BA), Visa (V), Starbucks (SBUX), UnitedHealth Group (UNH), Verizon (VZ), Mastercard (MA), Merck & Co. (MRK), Shell (SHEL), Exxon Mobil (XOM), Chevron (CVX), Coinbase (COIN), Caterpillar (CAT), ServiceNow (NOW), Anheuser-Busch InBev (BUD), and Eli Lilly (LLY).
Here are the latest updates from corporate America.
LIVE 90 updates
Boeing posts Q3 revenue beat, improving cash flow burn rate as CEO Ortberg’s turnaround plan takes off
Yahoo Finance’s Pras Subramanian reports:
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Caterpillar reports better-than-expected profits as tariffs weigh on costs
Caterpillar (CAT) sales rose in the third quarter, but so did its manufacturing costs.
The mining and construction machinery maker recorded adjusted profits per share of $4.88, which was above analysts’ estimates of $4.52, according to S&P Global Market Intelligence, but an $0.18 decrease from the same period a year ago.
Higher manufacturing costs offset higher sales volumes, the company said. It also noted that “unfavorable manufacturing costs largely reflected the impact of higher tariffs.” In Q2, CEO Joseph Creed stated that the company expects a tariff impact of $1.3 billion to $1.5 billion for the full year.
By segment, construction industries profits fell 7% year over year to $1.37 billion, while resource industries profits declined 19% to $499 million. Energy and transportation profits increased 17% to $1.67 billion in Q3. Financial products profits dropped 2% to $241 million.
Caterpillar stock rose 4.6% in premarket trading.
CVS raises full-year forecast, takes $5.7B impairment charge on health clinics
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TE Connectivity forecasts upbeat quarterly profit on strong demand for AI products
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Verizon beats estimates for quarterly subscriber additions, profit
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Adidas sees $140 million hit on operating profit from US tariffs
Adidas (ADS.DE) expects US import tariffs to have a direct impact of $140 million on its operating profit in 2025, with the largest hit coming in fourth quarter. The news sent the sports and apparel company’s shares down by 3% on Wednesday.
Reuters reports:
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Enphase stock tumbles on weaker-than-expected fourth quarter guidance
Enphase (ENPH) shares tumbled over 7% in extended trading as the residential solar company issued a weaker fourth quarter outlook than the Street was looking for.
The company, which makes microinverters, batteries, and solar energy systems for homeowners, sees revenue in a range of $310 million to $350 million for the fourth quarter. Consensus estimates were guiding for revenue of $382 million. Enphase also sees gross margins within a range of 40% to 43%, including approximately five percentage points of reciprocal tariff impact. The Street was expecting 44.2% margins.
The residential solar industry has been weathering ongoing weakness in solar demand since 2023. Enphase CEO Badri Kothandaraman said on the company’s earnings call that while demand is ramping back up in the US, it remains soft in much of Europe.
“2025 policy changes have extended payback period, creating a tough market for installers,” Kothandaraman said.
Seagate forecasts second quarter results above estimates on AI strength
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‘Continued healthy consumer spending’ props up Visa earnings
Visa (V) customers continued to swipe and tap their cards even as consumer sentiment deteriorated during the quarter.
For the fiscal fourth quarter, Visa reported adjusted net income of $5.8 billion, or $2.98 per share, on revenue of $10.7 billion, a 12% year over year increase. Analysts were looking for net income per share of $2.97 on revenue of $10.6 billion.
Visa said overall payment volume increased 9% over the prior year, while the total number of transactions processed by Visa grew 10% year over year to 67.7 billion.
“Continued healthy consumer spending drove net revenue up 12% to $10.7 billion,” Visa CEO Ryan McInerney said in the release.
Visa stock rose less than 1% in after-hours trading.
Soaring cocoa prices, ‘challenging conditions’ weigh on Mondelez earnings
Mondelez (MDLZ) stock sank 4% in after-hours trading as the Oreo maker reported a top-line beat but pointed to difficulties in the current macroeconomic backdrop.
Diluted earnings per share fell 9.5% year over year to $0.57. Analysts were looking for earnings of $0.70, according to S&P Global Market Intelligence. Excluding adjustments from divestitures, acquisitions, and other one-time costs, adjusted earnings per share came to $0.73 per share.
The company reported revenue of $9.74 billion, topping estimates of $9.68 billion. However, net revenues in North America declined as higher cocoa prices weighed on volumes.
Mondelez also called out the challenging macroeconomic backdrop as it forecast a roughly 15% decline in earnings per share for the full year.
“Although we anticipate challenging conditions to continue in some markets, we are encouraged by recent moderation in cocoa prices, as well as promising signs for a strong cocoa crop this fall,” Mondelez CEO Dirk Van de Put said in a statement. “Our teams are focused on executing clear plans for volume improvement, significantly increasing growth investments, and driving meaningful cost efficiencies.”
Logitech’s second quarter earnings boosted by AI-enabled products
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Electronic Arts misses second quarter bookings estimates
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Royal Caribbean stock drops despite earnings beat, boosted outlook
Royal Caribbean Cruises (RCL) reported third quarter earnings that beat Wall Street estimates and raised its full-year outlook. However, the stock still dropped over 9% on Tuesday. The stock was up 39% year to date ahead of the report, indicating that expectations were high going into earnings.
The cruise line operator reported adjusted earnings of $5.75 on revenue of $5.13 billion. Wall Street analysts were expecting adjusted earnings per share of $5.68 on revenue of $5.16 billion, according to S&P Global Market Intelligence.
Royal Caribbean also raised its full-year earnings forecast to a range of $15.58 to $15.63 from a range of $15.41 to $15.55 previously. Analysts were guiding for consensus average EPS of $15.68.
“We’re seeing a lot of great bookings … and we’ve seen that for the rest of the year and into next year,” Royal Caribbean Group CFO Naftali Holtz told Yahoo Finance (see video below).
Wayfair stock skyrockets more than 20% on greater orders, revenue
Wayfair (W) stock is up more than 20% at market open after the online furniture retailer posted third quarter results that beat estimates. Year to date, the stock is up more than 130%.
Adjusted earnings came in at $0.70, higher than Wall Street’s forecast of $0.44. Revenue grew 8.1% year over year to $3.12 billion, more than the $3.02 billion expected, per Bloomberg consensus data. Without the exit from Germany, revenue jumped 9%.
“Revenue growth was driven by order momentum,” Wayfair CEO Niraj Shah told investors on the company’s earnings call. “We saw orders grow by over 5% year over year in the quarter, including new orders growing mid-single digits for two quarters in a row.”
Listen to Wayfair’s earnings call or read the transcript here.
One of the key questions heading into the report was whether Wayfair saw pull-forward trends by consumers ahead of President Trump’s latest tariffs on furniture, including new 25% tariffs on kitchen cabinets, upholstered furniture, and lumber after the third quarter.
Shah said, “The only instances of pull forward we’ve identified came from a very short-lived increase in large appliances demand back in the early spring and a similarly short-lived increase in vanities late in the third quarter.”
He said “neither” was exceptionally meaningful, adding that consumer behavior didn’t shift “based on tariffs.”
Despite a projection that Americans will spend less this holiday season, with PwC expecting a 5% decline in the average holiday spend, Shah believes holiday shopping “is probably going to be similar to past years.”
For the fourth quarter, the company expects net revenue to be up mid-single digits year over year.
American Tower beats quarterly revenue estimates on strong leasing demand
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PayPal stock soars 14% on earnings beat, OpenAI partnership
PayPal (PYPL) stock soared over 14% in premarket trading after the digital payments company beat earnings estimates by a wide margin and announced a new partnership with OpenAI (OPAI.PVT).
PayPal reported profits of $1.34 per share, compared to Wall Street estimates of $1.21, according to S&P Global Market Intelligence. The company reported revenue of $8.4 billion, also topping expectations for $8.2 billion.
PayPal also raised its earnings guidance for the full year to a range of $5.11-$5.15, up from previous guidance of $4.90-$5.05.
Also boosting shares was PayPal’s announcement that it would team up with OpenAI to integrate payment solutions into AI surfaces like ChatGPT.
PayPal said it will introduce an agentic payments solution called agent ready that will allow users to complete purchases on ChatGPT via PayPal. The company said it would sync merchant catalogs to make products more discoverable on AI channels.
Fintech lender SoFi lifts 2025 profit forecast after record quarter
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UPS Q4 revenue forecast tops estimates; stock jumps
UPS (UPS) forecast fourth-quarter revenue above Wall Street estimates on Tuesday, causing the courier company’s shares to jump 14% in premarket trading.
Reuters reports:
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UnitedHealth lifts 2025 profit forecast, CEO eyes growth in 2026
UnitedHealth (UNH) raised its annual profit forecast after reporting better-than expected earnings on Tuesday, sending the health insurance company’s stock up by 4% in premarket trading.
Reuters reports:
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Waste Management misses earnings, revenue estimates as residential volumes declined
Waste Management (WM) reported third quarter earnings that missed expectations after the bell on Monday, sending the stock about 2% lower in after-hours trading.
Profits for the quarter were $1.98 per share on an adjusted basis. Wall Street analysts were looking for earnings of $2.01, according to S&P Global Market Intelligence. Revenue of $6.44 billion also slightly missed estimates for revenue of $6.49 billion.
Waste Management reaffirmed its adjusted operating EBITDA guidance of between $7.4 billion and $7.6 billion, but the company said its full-year forecast for $25.2 billion in revenue is now expected on the low end of its previous guidance range.
“Volumes in the Collection and Disposal business grew 0.2% as compared to the third quarter of 2024, driven by strong landfill volumes and growth in industrial collection volumes,” the company said in the report. “This growth was partially offset by a decline in residential collection volumes due to the strategic exit of lower-margin contracts.”
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