Earnings playbook: Alphabet, Microsoft, Amazon earnings this week
Earnings season is in full swing, and more tech giants are slated to report in the new week as investors look for clues on how companies are financing the artificial intelligence boom. Around 160 S & P 500 companies will report their quarterly results this week, including Alphabet , Microsoft , and Amazon . Boeing will report following the long-delayed certification of the 737 Max 10, as will trillion-dollar pharmaceutical giant Eli Lilly . Increased concerns over companies’ spending on artificial intelligence dominated market sentiment last week, sparking a sell-off Thursday that resulted in the Nasdaq Composite ‘s worst session since June. Thus far, quarterly results have been strong. As of Friday, more than 120 S & P 500 companies have reported, with about 83% beating the Street’s expectations for earnings, according to FactSet. All times ET. Tuesday Coca-Cola is set to report earnings before the opening bell. Management will hold a conference call at 8:30 a.m. Last quarter: KO ‘s double beat was fueled by increased exposure from the World Cup . The food and beverage giant also raised its full-year forecast. This quarter: According to LSEG, analysts expect modest year-over-year growth in both earnings and revenue, at 7.4% and 4.1%, respectively. What to watch: After KFC announced it was switching from PepsiCo products to offerings from Coca-Cola in their U.S. stores earlier this month, Bank of America analyst Peter Galbo called the deal “another positive proof point for KO’s U.S. foodservice business and the strength of its brands.” Marriott also recently switched from Pepsi to Coke, Galbo remarked in the note. What history shows: Data obtained from Bespoke Investment Group shows Coca-Cola hasn’t missed earnings estimates since 2017. Shares also tick higher, on average, after the company reports. Boeing will report earnings before the bell, with a conference call set for 10:30 a.m. Last quarter: BA posted a wider-than-expected adjusted loss, in part due to long-delayed new Air Force One planes. This quarter: Analysts only expect 2.5% topline growth compared to this time last year, LSEG data shows. What to watch: Boeing won FAA approval for the 737 Max 10 after years of delays last week. Following the certification, Transportation Secretary Sean Duffy told CNBC the U.S. needs to improve the speed at which it certifies jets. What history shows: According to Bespoke, earnings have produced mixed results this past year for Boeing. Shares rose after the last two earnings reports, but declined the three before that. Robinhood Markets is set to report earnings after the bell, with a conference call afterward at 5 p.m. Last quarter: HOOD ‘s event contracts revenue came in at $156 million in the second quarter. In June, Robinhood launched Rothera, an exchange that’s licensed with the Commodity Futures Trading Commission and managed through the brokerage’s joint venture with Susquehanna International Group. This quarter: Analysts are expecting diverging results on earnings and revenue, LSEG data shows, with over a 9% decrease in earnings growth but over an 11% increase in revenue year-over-year. What to watch: Rosenblatt recently initiated coverage of Robinhood at a buy rating, saying the trading platform has “one of the best growth stories in the financial sector.” By introducing a new generation to investing, “few companies can claim to have changed an entire industry, but Robinhood can,” analyst Chris Brendler wrote. What history shows: Earnings season has historically not been kind to Robinhood, Bespoke data shows. Shares of the online investment platform declined over 2.2% on average in the day following earnings, including in the last six releases. This gives it a Bespoke Earnings Score of 25/100, far below the average of 50. Wednesday Alphabet is slated to report earnings after the bell Wednesday, followed by a conference call at 4:30 p.m. Last quarter: GOOGL ‘s revenue topped expectations, but its stock sank after the company said it was hiking its capex forecast for the year, acknowledging a “supply-constrained environment.” This quarter: Analysts expect the Google parent to continue to benefit from the AI boom with about 25% growth in revenue from last year, according to LSEG data. What to watch: BMO Capital Markets said recent AI model releases have “helped to offset fears that GOOGL was falling behind in frontier model intelligence.” What history shows: Historically, Alphabet’s shares have gained nearly 1.3% on average following earnings reports, according to Bespoke. Ford Motor is set to report earnings after the bell, with a conference call at 5 p.m. Last quarter: F raised its full-year earnings forecast despite declining revenue, pointing to a strong sales mix of profitable products. This quarter: According to LSEG, analysts expect a slump from the automaker, including a small decline in revenue growth. What to watch: Wolfe Research laid out a “cautious setup” for Ford going into earnings due to “production downtime” this quarter, seeing lower profit than expected but noting that CEO Jim Farley said the slowdown would likely not affect full-year guidance. What history shows: According to Bespoke, Ford beats earnings and revenue estimates 70% and 77% of the time, respectively. Microsoft is scheduled to report earnings after the close, with a conference call to follow at 5:30 p.m. Last quarter: MSFT shares rose amid the software giant’s report of 18% revenue growth year-over-year and a $3.2 billion gain from an investment in Anthropic . This quarter: LSEG data shows that analysts forecast 14.3% growth in earnings and 16.8% growth in revenue on a year-over-year basis. What to watch: Piper Sandler said investors are turning positive on the stock due to continued acceleration with Azure and an improving AI strategy. “Our 3Q partner checks were strong, with MSFT’s net results inflecting higher and demand for prepackaged AI solutions leading the list,” analyst Billy Fitzsimmons wrote. What history shows: Bespoke data shows that Microsoft has posted a double beat every quarter since April 2023, and that MSFT shares tick higher on average following earnings reports. Thursday Caterpillar is set to report earnings before the bell Thursday, with a conference call at 8:30 a.m. Last quarter: CAT beat estimates as the data center build-out increased demand for its power and construction equipment. This quarter: The Street is forecasting breakout increases in earnings and revenue, by over 43% and over 17%, respectively, per LSEG. What to watch: Lowering the price target on Caterpillar shares, Bank of America’s Michael Feniger noted investor concerns of “peak backlog, higher rates, [and] power [equipment] risks” this quarter. What history shows: The industrial giant’s shares rose after last quarter’s earnings, and have ticked higher after the last six reports. Eli Lilly will report earnings before the bell, with a conference call at 10 a.m. Last quarter: LLY far exceeded estimates and raised its full-year outlook off the blockbuster success of its GLP-1 and diabetes drugs. This quarter: LSEG data shows expectations of slightly lower earnings growth than this time last year but over a 28% growth in revenue. What to watch: According to Goldman Sachs, the Street will be watching closely for commentary about full-year guidance for the pharmaceutical giant as Mounjaro and Zepbound continue to shine. “Our investor conversations point to anticipation by many for a FY26 guidance raise with the top-end above consensus likely needed to satisfy bullish expectations,” analyst Asad Haider wrote. What history shows: According to Bespoke, Lilly beats earnings and revenue estimates close to 70% of the time. This includes a double beat in each of the last seven quarters. Amazon.com is scheduled to report earnings after the bell, followed by a conference call at 5 p.m. Last quarter: AMZN got a boost from the AI boom, with strong cloud growth leading to a double beat . This quarter: Amazon’s earnings per share are expected to remain relatively flat alongside double-digit yearly growth in revenue, according to LSEG data. What to watch: Jefferies has a positive take on the e-commerce giant, calling the stock “attractive” and a “discount” alternative to Alphabet and Walmart . “AWS is not yet done accelerating, and AMZN ecom/retail has continued to surprise positively despite cautious consumer sentiment,” analyst Brent Thill writes. What history shows: Amazon’s top- and bottom-line results beat expectations 72% of the time and 66% of the time, respectively, according to Bespoke. Intel is scheduled to report earnings after the bell, also holding a conference call at 5 p.m. Last quarter: INTC topped analysts’ expectations, posting its highest quarterly revenue growth since 2011. This quarter: According to LSEG data, analysts are expecting 70.3% growth in earnings per share and 20.5% revenue growth year-over-year. What to watch: UBS said it sees a strong topline outlook, pointing to strong but slowing demand. However, analyst Timothy Arcuri noted that Intel said “demand continues to run ahead of supply.” According to Arcuri, “the near-term setup is quite strong,” with the chipmaker on the right path. What history shows: Bespoke data shows that shares historically decline 1.36% on average following earnings releases.
