All articles tagged with #corporate earnings and results
US S&P 500 companies are on track for 47.4% year-over-year earnings growth in Q2—the strongest in five years—driven by energy profits from high fuel prices, AI-related investments, and broad gains across sectors beyond tech, with about nine in ten beating forecasts and eight of 11 sectors posting double-digit earnings. The results bolster the stock market even as consumers face higher costs and affordability pressures.
Meta Platforms shares fell about 6% after hours as Q2 revenue rose to $60.8B (up 28%), but its Q3 forecast of $61-64B and net income of $15.8B (vs. $18.5B est) disappointed amid a 55% surge in costs as Mark Zuckerberg presses ahead with massive AI infrastructure, including data centers and the TBD Lab/Muse Spark; 2026 capex guidance is now $130-145B, with ongoing monetisation and cloud ambitions to bolster future returns.
Tesla’s Q2 profit fell 17% to $1.2B as heavy discounting to boost EV demand weighed on margins, and revenue from regulatory credits collapsed to $146M from $439M. Automotive margin excluding credits came in at 16.3%, below expectations, with US demand hampered after the loss of a $7,500 tax credit. The company is accelerating a pivot to semiconductors, autonomous taxis and humanoid robots, boosting capex by 142% to $5.79B and posting a quarterly cash burn of $1.1B despite record deliveries of 480,126 and revenue rising 26% to $28.2B. Musk signaled 2026 capex above $25B as AI and chip initiatives expand.
PepsiCo warns that higher fuel prices will lift input-cost inflation in the second half, with US snacks volumes flat and price cuts weighing on US revenue, while international markets remain resilient. The company posted 6.4% revenue growth to $24.2 billion and kept its full-year guidance, though shares fell on the softer US outlook.
Spotify forecast weaker Q2 subscriber growth and €630m in operating income, below expectations, amid concerns price rises may deter customers; it expects 6m new subscribers to 299m (vs 302m consensus). In Q1 it added 3m paying subscribers (293m) and 761m MAUs on €4.5bn revenue with €721m net income, while stressing cost discipline and signaling an investor day with AI plans.
Block Inc. will cut about 4,000 jobs—nearly half its workforce—while leaning into AI tools, a move CEO Jack Dorsey says reflects how intelligence tools transform building and running a company. The announcement sent Block shares up over 25% after hours; the company reported about $6.3 billion in Q4 revenue and a $234 million hit from bitcoin investments, illustrating the broader AI-driven shift and the crypto-risk backdrop.