Second quarter earnings season off to strong start with Tesla, Google on deck

After a slew of mostly upbeat results this week from Wall Street banks, Netflix (NFLX), and PepsiCo (PEP), among others, investors look to the next batch of corporate updates.

Notably, Alphabet (GOOGL, GOOG) and Tesla (TSLA), will be the first companies in the “Magnificent Seven” cohort to report results. Big Tech companies are expected to lead S&P 500 earnings growth again this quarter.

Here's the lineup of major companies reporting earnings next week:

Monday: Cleveland Cliffs (CLF), Domino's Pizza (DPZ), Steel Dynamics (STLD), Verizon (VZ)

Tuesday: Capital One (COF), Coca-Cola (KO), DR Horton (DHI), Enphase Energy (ENPH), GM (GM), Lockheed Martin (LMT), Philip Morris International (PM), SAP (SAP), Texas Instruments (TXN)

Wednesday: Alphabet, Tesla, Chipotle (CMG), Alaska Airlines (ALK), AT&T (T), Fiserv (FI), Freeport McMoran (FCX), GE Vernova (GEV), General Dynamics (GD), Hasbro (HAS), IBM (IBM), O'Reilly Automotive (ORLY), QuantumScape (QS)

Thursday: American Airlines (AAL), Blackstone (BX), Deckers (DECK), Dow (DOW), Honeywell (HON), Intel (INTC), Keurig Dr. Pepper (KDP), Nasdaq (NDAQ), Nokia (NOK), Southwest Airlines (LUV), Union Pacific (UNP)

Friday: Charter Communications (CHTR)

Netflix stock (NFLX) dropped 5% on Friday after its second quarter results failed to satisfy investors' lofty expectations that left little room for error.

But there were still plenty of positives in the quarter. Yahoo Finance's Brian Sozzi details his top takeaways from Netflix's results:

Read more here.

Consumer spending remained stable despite larger macro uncertainty, American Express (AXP) CFO Christophe Le Caillec said.

“What you see is remarkable resilience across our customer base,” he said, though he noted consumers are exercising “a little bit of prudence around the edges.”

Overall consumer and business spending rose 7% to $416.3 billion, remaining consistent with trends in the first quarter, Le Caillec stated. Airline and lodging spending was slightly softer, while restaurant spending grew 8%.

Transaction growth was up 9%, “another indicator of strong customer engagement and … largely consistent with what we’ve been seeing over the past few quarters,” the CFO said.

American Express caters to more premium consumers, a competitive market for credit card issuers that has been heating up in recent years. The company sees continued growth for the rest of the year and left its revenue and earnings per share guidance unchanged.

Shares of American Express slipped 3% in early trading.

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.

Listen to the earnings call live at 9:30 a.m. ET here.

Reuters reports:

Read more here.

Listen to the earnings call live at 8:30 a.m. ET here.

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.

Read more here from Reuters.

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.

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:

Read more here.

Yahoo Finance's Allie Canal reports:

Read more here.

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.

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.

Read more here.

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.

Read more here.

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:

Read more here.

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.

Read more here.

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.

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:

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Reuters reports:

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