The third quarter earnings season is in full swing, with several AI players reporting results this week, including Palantir (PLTR), AMD (AMD), and Supermicro (SMCI).
So far, the earnings season is off to a positive start. As of Oct. 31, 64% of S&P 500 companies have reported results, according to FactSet data, and analysts are expecting a 10.7% jump in earnings per share during the third quarter. If that figure holds, it would mark the fourth straight quarter of double-digit 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.
Source: FactSet
This week, AI beneficiaries such as Palantir, AMD, Supermicro, Constellation Energy (CEG), Qualcomm (QCOM), and Arm Holdings (ARM) will provide quarterly updates.
Other notable results will come from Shopify (SHOP), Uber (UBER), Pfizer (PFE), Spotify (SPOT), Marriott International (MAR), Toyota (TM), Novo Nordisk (NVO), McDonald’s (MCD), AppLovin (APP), Robinhood (HOOD), DoorDash (DASH), Snap (SNAP), AstraZeneca (AZN), ConocoPhillips (COP), Airbnb (ABNB), Warner Bros. Discovery (WBD), Block (XYZ), Duke Energy (DUK), and Wendy’s (WEN).
Here are the latest updates from corporate America.
Snap (SNAP) stock soared over 22% after the tech company reported a revenue beat, issued a strong forecast, and announced a partnership with Perplexity AI (PEAI.PVT).
As part of that partnership, Perplexity will pay Snap $400 million starting in early 2026 to appear in the Chat interface for Snapchatters worldwide.
“Our goal is to make AI more personal, social, and fun – woven into the fabric of your friendships, Snaps, and conversations,” Snap CEO Evan Spiegel said. “This partnership reflects our shared vision for the power of AI to enhance discovery and connection on Snapchat, and we look forward to collaborating with more innovative partners in the future.”
For the third quarter, the company reported a $0.06 loss per share, versus a $0.12 loss estimated by Wall Street analysts, according to S&P Global Market Intelligence.
Revenue grew 10% year over year to $1.5 billion, compared to $1.49 billion estimated by analysts and $1.34 billion in Q2. It marked a deceleration from the 15.5% annual revenue growth in Q3 2024.
For the fourth quarter, Snap expects sales to be between $1.68 billion and $1.71 billion, also ahead of estimates.
Daily active users (DAU) grew 8% year over-year to 477 million. The company had guided for 476 million in Q3.
E.l.f. Beauty, Inc. (ELF) shares fell more than 21% in after-hours trading on Wednesday after the company posted a disappointing 2026 full-year outlook.
The company expects net sales to be in the range of $1.55 billion to $1.57 billion, below Wall Street’s expectations of $1.65 billion, per Bloomberg consensus data. It also expects adjusted earnings in the range of $2.80 to $2.85, also far lower than the expected $3.53. It expects net sales growth of approximately 18% to 20%.
CFO Mandy Fields attributed the weaker outlook to tariffs, which “assumes that the 45% tariff rate stays in place for the remainder of our fiscal year.”
On a call with investors, she said, “We estimate every 10 percentage points of incremental tariffs results in a $17 million growth impact to our cost of goods sold on an annualized basis before any mitigating actions.”
She added, “While tariff rates remain volatile, we believe the lead time of our supply chain gives us greater visibility into our costs for the second half of the year.”
The stock fell as much as 30% before paring some of those losses.
In the company’s latest quarter, it posted mixed results. Adjusted earnings beat estimates at $0.68 per share, while revenue came in at $342.9 million, short of Wall Street’s expected $365.7 million.
Figma saw its shares rise along with its annual revenue forecast, which was boosted by the success of the company’s AI tools and design software.
Chime Financial (CHYM) reported annual revenue growth of 29% in the September quarter, highlighting resilient consumer spending on essentials in the US.
The fintech company, which provides digital consumer banking and payment services, including checking and savings accounts, reported revenue of $544 million. Chime also raised its full-year forecast as it sees a surge of new members.
Chime stock increased 5% in after-hours trading following the results.
Robinhood (HOOD) stock slipped after hours as the company’s profit and revenue beats were tested by the stock’s massive 280%-plus rally since the beginning of the year.
AppLovin Corporation (APP) stock rose nearly 4% after the advertising technology company delivered consistent results across the board that beat Wall Street’s expectations.
The stock has been highly volatile this year: It’s up 91% year to date but has shed 9% over the past month after Bloomberg reported that the Securities and Exchange Commission opened an investigation into AppLovin’s data-collection practices.
Here’s what AppLovin reported for the third quarter, compared to analyst estimates compiled by S&P Global Market Intelligence.
For the fourth quarter, AppLovin expects revenue in the range of $1.57 billion to $1.6 billion. The company is expected to discuss its guidance further on the earnings call at 5 p.m. ET, which you can listen to here.
Lucid (LCID) stock tumbled 4% in after-hours trading following the EV maker’s results, which missed the mark as losses piled on despite sales pulling higher.
UK-based chip designer Arm Holdings (ARM) reported a double beat on its fiscal second quarter earnings and revenue, and its Q3 outlook also topped analyst estimates. The stock jumped 3% in extended trading.
Arm reported earnings per share of $0.39, surpassing estimates for $0.33. Revenue of $1.14 billion also beat estimates of $1.06 billion, according to S&P Global Market Intelligence, marking a 34% year-over-year jump.
For the third quarter, Arm expects revenue in the range of $1.18 billion to $1.28 billion. Arm counts Apple (AAPL) and Nvidia (NVDA) among its customers.
“Arm is one of those companies that has an entree coming … they’re going to get into AI chips,” Futurum CEO Daniel Newman told Yahoo Finance in response to the results. “This company is almost twice the size it was when it went public, and they haven’t really fully gotten into AI yet.”
DoorDash (DASH) stock plunged late Wednesday, falling as much as 19% after the company reported third quarter profit that missed forecasts and said its fourth quarter profits would come in below Street expectations.
Adjusted earnings per share in the third quarter tallied $0.55, missing forecasts for earnings per share of $0.68, according to Bloomberg data. Revenue beat expectations, coming in at $3.45 billion against estimates for $3.36 billion.
Some of its key metrics, such as total orders and marketplace gross order value (GOV), the total dollar value of orders on the marketplace, also Wall Street analysts’ forecasts.
Total order volumes came in 5 million higher than the street expected, clocking in at 776 million. Marketplace GOV came in at $25.02 billion, above the $24.58 billion Wall Street projected. That’s also above DoorDash’s quarterly outlook provided in the previous quarter, a range $24.2 billion to $24.7 billion.
In the fourth quarter, the company expects adjusted EBITDA to come in between $710 million-$810 million, roughly in-line with the $754 million reported in the third quarter. Marketplace GOV is forecast to come in the range of $28.9 billion-$29.5 billion.
In its release on Wednesday, the company said some key drivers in the third quarter quarter included gaining twice as many monthly active users in the first nine months of the year compared to 2024.
Its US restaurant category saw year-over-year growth in marketplace GOV, and it expanded partnerships in areas such as grocery, retail, alcohol, floral, pet, gifting, and convenience, contributing to higher user engagement.
DoorDash’s stock slide late Wednesday follows widespread weakness in restaurant stocks this year, with stressed consumers continuing to be more choiceful and looking for value across household budgets.
Ahead of Wednesday’s report, DoorDash stock had been up about 40% this year.
Lemonade (LMND) stock climbed 10% in premarket trading on Wednesday after shedding over 4% the day before. The insurance company reported a smaller loss than analysts were expecting and raised its revenue guidance for the year.
In the third quarter, Lemonade recorded a loss per share of $0.55, compared to Wall Street’s expectations for a loss per share of $0.71. Revenue also beat expectations, coming in at $194.5 million vs. $185 million estimated.
For the full year, Lemonade upped its revenue outlook to a range of $727 million to $732 million. Previously, the company guided for revenue of $710 million to $716 million. The midpoint of consensus estimates had guided for 2025 revenue at $714 million.
Humana (HUM) stock fell more than 5% on Wednesday after the health insurance company forecast lower Medicare growth in its third quarter earnings release. The insurance group beat Wall Street estimates but is battling high costs due to an increase in its services.
Toyota (TM) stock fell 2% in premarket trading on Wednesday after reporting a drop in profit in its third quarter earnings. The Japanese automaker said that President Trump’s tariffs have hurt the sector.
Toast (TOST) shares gained 6% in extended trading after the cloud-based restaurant platform substantially raised its full-year adjusted EBITDA guidance.
Toast now sees adjusted EBITDA in the range of $610 million to $620 million, up from the $565 million to $585 million range previously forecast.
In the third quarter, Toast missed profit estimates, reporting earnings per share of $0.16, which was below consensus estimates of $0.23 per share.
Its annualized recurring run-rate (“ARR”), a key operational measure for subscription revenue, grew 30%, crossing $2 billion. Toast also added about 7,500 net new locations in Q3.
Match Group (MTCH)missed analysts’ fourth-quarter revenue estimates, shining a light on how dating apps are struggling to keep up with lowering demand in younger users.
CAVA (CAVA) posted mixed quarterly results Tuesday after market close.
The Mediterranean fast-casual chain posted revenue of $292.2 million, only a tick higher than the $291.5 million the Street expected, per Bloomberg data. Adjusted earnings clocked in at $0.12, $0.01 lower than the $0.13 projected.
Same-store sales came in lower, up 1.9% in the third quarter, compared to the expected 2.67% increase. Higher menu prices and product mix, such as steak and chicken shawarma, offset flat guest traffic.
In the release, co-founder and CEO Brett Schulman said the company “delivered another quarter of market share growth, while we continued to reinforce our value proposition.”
Schulman said the chain proved that the “underlying strength” of the model is “evident” as it lapsed “strong prior-year results” and was navigating “macroeconomic headwinds in the quarter
The stock is down around 5% after the market close, adding to a steep decline of roughly 50% so far this year.
Cava also cut its fiscal year guidance yet again.
It now expects same-store sales to increase between 3% to 4%, down from the previous range of 4% to 6%. Adjusted EBITDA is expected to be less as well in the range of $148 million to $152 million, compared to the previously expected range of $152 million to $159 million.
Supermicro (SMCI) saw its stock drop after missing estimates on both earnings and revenue for its first fiscal quarter.
