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3M, American Express, Charles Schwab Q2 results surpass estimates
The drumbeat of second quarter earnings continued on Friday with reports from 3M (MMM), American Express (AXP), and Charles Schwab (SCHW).
3M, the maker of Scotch tape and Post-it Notes, showed signs that consumers are powering through any weakness after posting an earnings beat and guidance raise. Similarly, American Express’s (AXP) results showed its cardholders kept spending, echoing the sentiment from big banks earlier in the week that consumers’ finances were generally in good shape.
Meanwhile, Thursday’s notable report from Netflix (NFLX) kicked off Big Tech earnings, but the streaming company’s solid report did little to excite investors, who remain divided on its rich valuation. Netflix stock fell on Friday despite beating Wall Street estimates on the top and bottom lines and raising its full-year revenue guidance.
Investors received several other corporate updates this week, starting with the biggest Wall Street banks.
Banks saw a boost in trading and dealmaking revenue during the quarter, leading to better-than-expected results for JPMorgan (JPM), Goldman Sachs (GS), Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), and Morgan Stanley (MS), Bank of New York Mellon (BK), and BlackRock (BLK).
On Friday, Charles Schwab said it benefited from a surge in trading activity around President Trump’s tariffs. The brokerage’s profits rose 60% in the quarter compared to a year ago.
PepsiCo (PEP) also exceeded expectations, as did GE Aerospace (GE) and Nvidia supplier Taiwan Semiconductor Manufacturing (TSM), which reported a record quarterly profit amid strong AI demand.
In the weeks ahead, investors will look for additional clues about the health of the US economy and any negative impacts from Trump’s tariffs.
Data from FactSet published earlier this month showed analysts expect S&P 500 companies to report a 5% jump in earnings per share during the second quarter, which would mark the slowest pace of earnings growth since the fourth quarter of 2023.
Through Friday, with 4% of the index having reported results, second quarter earnings growth was tracking to 4.8%.
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Market volatility provides Charles Schwab a tailwind in Q2
Charles Schwab’s (SCHW) adjusted profits surged more than 50% year over year as market volatility surrounding President Trump’s tariffs fueled higher trading activity for the brokerage.
The company reported adjusted earnings per share of $1.14, beating Wall Street estimates for EPS of $1.10. Revenue came in at $5.9 billion, above expectations for $5.7 billion.
Charles Schwab also brought in new assets of $80.3 billion, representing 31% growth annually.
“Schwab delivered growth on all fronts during the second quarter,” Charles Schwab CEO Rick Wurster said. “The firm’s diversified revenue model, coupled with our best-in-class scale and efficiency, produced quarterly records for both revenue and earnings per share.”
The stock rose 3% ahead of the opening bell.
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American Express earnings top estimates as premium tilt pays off
Reuters reports:
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3M stock rises on earnings beat, lifted outlook
3M (MMM) stock rose over 2% in premarket trading on Friday after posting an earnings beat and raising its full-year profit forecast.
The Scotch tape maker reported second quarter adjusted earnings per share of $2.16 on revenue of $6.16 billion, both above estimates.
It now sees full-year adjusted profits between $7.75 and $8 per share, compared with its previous estimate of $7.60 to $7.90.
3M also projected tariffs would create a smaller hit to earnings this year than previously expected. Its forecast includes a $0.10 per share hit to 2025 earnings, versus the $0.20 to $0.40 impact it guided for previously.
Other companies have also scaled back their projected losses from tariffs. Earlier this week, Johnson & Johnson (JNJ) halved its expected tariff impact to $200 million.
- Thu, July 17, 2025 at 8:54 PM UTC
Why Netflix stock is down after a ‘solid’ report
Netflix (NFLX) delivered a “solid” report, so why is the stock faltering after hours?
Bloomberg Intelligence senior media analyst Geetha Ranganathan told Yahoo Finance that the stock was priced to perfection heading into the report.
“It was a really solid print,” Ranganathan said in reaction to the earnings. “The big thing that investors were really focused on was commentary for the rest of the year, and they delivered there as well.”
Ranganathan also noted that while the operating margin was also solid, it was “maybe not spectacular.”
“I think investors were looking for something a little but more here,” she said. “So it was originally forecast at 29% for the full year operating margin — they just took that up a smidge to 29.5%. I think investors were looking somewhere in the range of 30%-31%.”
Netflix’s earnings call is underway. You can listen live on the stock ticker page.
- Thu, July 17, 2025 at 8:28 PM UTC
Netflix earnings top estimates as company raises full-year revenue forecast
Netflix (NFLX) earnings are in, and the company posted results that beat expectations on both the top and bottom lines and raised its revenue guidance for the full year. But the stock fell slightly after hours.
Here’s what Netflix reported for the second quarter compared to Bloomberg consensus estimates.
Yahoo Finance’s Allie Canal reports:
- Thu, July 17, 2025 at 2:43 PM UTC
Netflix earnings on deck as investors weigh valuation, content strength
Yahoo Finance’s Allie Canal reports:
- Thu, July 17, 2025 at 12:13 PM UTC
Abbott beats on earnings, but its third quarter forecast falls short
Abbott’s (ABT) second quarter profits beat Wall Street estimates, but its third quarter forecast came in lighter than expected, sending shares over 4% lower in premarket trading.
The healthcare and medical device company reported Q2 revenue of $11.14 billion, beating expectations of $11.07 billion, according to data compiled by LSEG.
Notably, sales of Abbott’s continuous glucose monitors jumped 21.4% to $1.9 billion in the quarter.
On an adjusted basis, the company reported a profit of $1.26 per share for the second quarter, compared with estimates of $1.25.
For the third quarter, Abbott sees profit coming in between $1.28 and $1.32 per share.
Reuters also reported that Abbott announced plans to build a manufacturing facility in Georgia by 2028 to support its cardiovascular business. That facility, along with two others planned for Illinois and Texas, aim to help Abbott mitigate any impact from President Trump’s tariffs.
> Listen to the earnings call live at 9 a.m. ET on the stock ticker page.
- Thu, July 17, 2025 at 11:47 AM UTC
TSMC reports record quarterly profit, says AI demand is growing
Taiwan Semiconductor Manufacturing Company (TSM) posted a record quarterly profit on Thursday of 398.3 billion new Taiwan dollars ($13.5 billion), an increase of more than 60% year over year.
TSMC, which is Nvidia’s (NVDA) primary chip manufacturer, said artificial intelligence demand was growing and raised its sales outlook for the third quarter and full year.
Nvidia has been allowed to resume sales of its H20 chip in China, which could help it recoup as much as $15 billion in revenue.
“China is a big market, and my customer can continue to supply the chip to the big market,” TSMC CEO C.C. Wei said at a press conference. “It’s very positive news for them, and in return, it’s very positive news for TSMC.”
While TSMC has not seen changes in customers’ behavior so far, it cautioned that tariffs could affect income in the fourth quarter.
TSMC stock rose 3% in premarket trading.
- Thu, July 17, 2025 at 11:44 AM UTC
PepsiCo expects smaller drop in annual profit on US soda demand, weaker dollar
Reuters reports:
Thu, July 17, 2025 at 11:43 AM UTC
GE Aerospace lifts 2025 profit view on rising demand for fixing older jets
Reuters reports:
- Wed, July 16, 2025 at 8:55 PM UTC
United Airlines posts better-than-expected earnings, trims profit outlook
United Airlines (UAL) reported mixed results on Wednesday but said it sees a “positive inflection” through the rest of the year.
Adjusted earnings for the second quarter were $3.87 per share, above expectations for $3.84, on revenue of $15.24 billion, a slight miss versus expectations for $15.33 billion.
The air carrier now sees full-year adjusted earnings per share guidance in the range of $9 to $11. As of Wednesday, analysts were expecting an adjusted profit of $9.92 on average for the year, per Bloomberg. For the third quarter, United forecast that adjusted profits would come in between $2.25 and $2.75 a share.
Both outlooks were below United’s previous guidance for the year. In the first quarter, United maintained its full-year forecast for adjusted earnings per share of $11.50 to $13.50 but offered a second forecast should the US fall into recession.
Shares fell 1.5% in after-hours trading. United stock surged 13% last Thursday on the heels of Delta’s (DAL) report.
- Wed, July 16, 2025 at 7:53 PM UTC
Stocks endured a wild ride in the second quarter. It was great news for big banks.
Markets were highly volatile in the second quarter, with President Trump’s tariff announcements and geopolitical events such as the Israel-Iran war leading to major S&P 500 swings.
But this week’s bank earnings show that volatility made it a good time to be a stock trader at a major bank. Yahoo Finance’s Jake Conley reports:
- Wed, July 16, 2025 at 4:35 PM UTC
Progressive stock rises on earnings beat
Progressive (PGR) stock gained roughly 2% in midday trading on Wednesday after the insurance company reported year-over-year sales growth of 15.7%, amounting to $20.99 billion.
Earnings came in at $5.40 per share, 14.8% above analysts’ estimates.
- Wed, July 16, 2025 at 1:51 PM UTC
J.B. Hunt exec highlights ‘very dynamic forecasting challenge’ amid tariffs
In an earnings call on Tuesday, J.B. Hunt (JBHT) executive vice president Spencer Frazier highlighted that it continues to be challenging to forecast demand this year amid trade policy disruptions.
“Some [customers] stayed the course,” Frazier said about the clients’ behavior in the second quarter. “Some paused certain items. Some pulled inventory forward.”
“Really, all of them, longer-term, are considering their sourcing strategies,” he added, “and that makes for a very dynamic forecasting challenge for them and for us.”
The Arkansas-based surface transport and freight company reported earnings per share of $1.31 for the second quarter that were largely in line with analysts’ expectations. Its revenue of $2.93 billion was flat year over year.
Frazier said that the company started its peak season surcharge program earlier this year due to the uncertainty and volatility. In the second quarter, he noted that overall customer demand trended modestly below normal seasonality.
- Wed, July 16, 2025 at 12:18 PM UTC
ASML shares slump after chipmaking linchpin warns on growth
ASML (ASML, ASML.AS) shares fell almost 8% in premarket trading after the Dutch firm warned sales may fall next year and said it may not achieve growth in 2026.
The warning came even as the world’s biggest supplier of chipmaking gear’s second quarter bookings topped Wall Street estimates on Wednesday.
“We continue to see increasing uncertainty driven by macro-economic and geopolitical developments,” ASML CEO Christophe Fouquet said in a statement on ASML’s quarterly results Wednesday. “Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.”
Bloomberg reports:
Wed, July 16, 2025 at 12:11 PM UTC
Morgan Stanley profit rises as traders ride market turmoil
Reuters reports:
- Wed, July 16, 2025 at 12:09 PM UTC
Bank of America profit beats estimates as traders get boost from market turmoil
Reuters reports:
- Wed, July 16, 2025 at 12:07 PM UTC
Johnson & Johnson beats on earnings, raises outlook
Johnson & Johnson (JNJ) reported second quarter earnings that beat Wall Street estimates Wednesday due to strong demand for its cancer drug, Darzalex, and strength in its medical device business.
The company reported revenue of $23.7 billion, versus the $22.8 billion estimated by Wall Street analysts surveyed by Bloomberg. Earnings per share came in at $2.77, versus estimates of $2.66.
Johnson & Johnson raised its full-year sales outlook to a range of $93.2 billion to $93.6 billion, boosting shares by 1.7% in premarket trading.
Yahoo Finance’s Anjalee Khemlani reports:
- Wed, July 16, 2025 at 11:48 AM UTC
Trading and dealmaking boosted Goldman profits as Wall Street overcame Trump tariff chaos
Goldman Sachs (GS) joined JPMorgan Chase (JPM) and Citigroup (C) in reporting higher dealmaking and trading revenue for the second quarter.
Though dealmaking halted following President Trump’s April 2 tariff announcement, bankers saw momentum pick up following the tariff pause and as Trump began to loosen some supervisory rules.
Yahoo Finance’s David Hollerith reports:
- Tue, July 15, 2025 at 6:27 PM UTC
Big banks say the US consumer ‘basically seems to be fine’
Yahoo Finance’s Jake Conley reports:
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