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.
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Palantir (PLTR) stock rose 2.6% and then pared gains immediately after the company released its fourth quarter earnings report that beat Wall Street estimates on the top and bottom lines. The stock fell 8% early on Friday.
The AI software company reported adjusted earnings per share of $0.21, ahead of the $0.17 expected by Wall Street and more than double its EPS of $0.10 in the third quarter of 2024.
Revenue for the quarter came in at $1.18 billion, a 63% increase from the previous year and above the $1.09 billion expected by analysts.
Palantir’s guidance for the fourth quarter was also better than expected. Yahoo Finance’s Laura Bratton reports:
Marriott (MAR) beat third quarter estimates on the top and bottom lines on Tuesday, but the stock bounced around the flat line after a key metric — revenue per available room, or RevPAR — only increased modestly.
Overall revenue of $6.48 billion topped estimates of $6.45 billion, according to S&P Global Market Intelligence, while earnings per share of $2.67 surpassed the $2.39 expected.
RevPAR increased 0.5%, reflecting a 2.6% increase internationally and a 0.4% decline in the US and Canada. Luxury continued to outperform in this bifurcated economy, with luxury RevPAR climbing 4%.
Canadian e-commerce company Shopify (SHOP) issued an upbeat forecast for the holiday shopping season, saying it expects revenue to grow by a “mid-to-high-twenties percentage rate” in the fourth quarter compared to a year ago.
But the stock fell 5% in premarket trading as profit declined year over year in the third quarter.
Pfizer (PFE) stock drifted lower in premarket trading after declining COVID revenue weighed on its third quarter results.
The drugmaker said that lower COVID infection rates hampered demand for its antiviral drug Paxlovid, and fewer people got the COVID vaccine.
Paxlovid revenue fell 55% year over year, the company said, partially due to tough comps from a government stockpile purchase last year. Comirnaty (the COVID vaccine) revenue was down 20% operationally due to a narrower recommendation for vaccination in the US as well as delayed approval of the new variant vaccine.
Pfizer reported earnings per share of $0.87, while the Street was looking for $0.64, according to S&P Global Market Intelligence. Revenue declined 7% year over year to $16.7 billion but still beat estimates of $16.5 billion.
The company reaffirmed its full-year revenue guidance ($61 billion to $64 billion) and raised its full-year adjusted earnings per share guidance to a range of $3.00 to $3.15 from $2.90 to $3.10.
Uber (UBER) reported strong third quarter earnings on Tuesday before the bell, but failed to impress investors — who probably wanted more, sending the stock down 4% in premarket trading.
Yahoo Finance’s senior reporter Pras Subramanian delves into the latest results from the ride-hailing company.
Spotify (SPOT) stock rose 3% before the bell on Tuesday after the audio giant reported better-than-expected third quarter results, beating analyst estimates on revenue and margin, alongside user growth.
Yahoo Finance’s senior reporter Allie Canal reports on the latest earnings report from Spotify.
ADM (ADM) stock slumped 9% before the bell on Tuesday after it cutting its full-year 2025 profit outlook after weaker crush margins and delays in US biofuel policy weighed on results, sending the grain trader’s shares down nearly 9% in premarket trading.
Clorox (CLX) stock rose 3% in extended trading as investors brushed off lower sales and earnings, partially due to a major software overhaul.
The consumer goods company is currently switching its legacy supply chain technology to a new ERP system, which affected its financials in the fiscal first quarter. Ahead of the transformation, Clorox bulked up its inventory at retailers, leading to fewer shipments. For the rest of the year, the company said it expects this inventory drawdown from the ERP change to reduce fiscal year 2026 earnings per share by about $0.90.
For the September quarter, Clorox reported that diluted net earnings per share decreased 19% to $0.65 from $0.80 in the year-ago quarter. The Street was looking for earnings of $0.69 per share.
Clorox also reported double-digit sales declines in most segments, with overall net sales decreasing by 19% year over year.
In its Health and Wellness segment, which includes cleaning products, net sales fell 19%. Sales in the Household segment, net sales also dropped 19%. Sales in the Lifestyle segment (food, water filtration) dropped 23%, and international sales fell 2%.
“As with any rollout of this scale, we experienced some temporary disruptions that affected our market share,” CEO Linda Rendle said. “With the majority of the rollout now behind us, our focus is now squarely on accelerating profitable growth through innovation and strong demand-creation initiatives in the second half of this fiscal year.”
Hims & Hers (HIMS) reported revenue that beat expectations on Monday, but the telehealth company’s earnings fell short of estimates.
For the third quarter, the company reported earnings of $0.06 on revenue of $598.9 million, compared to Wall Street estimates of $0.10 on revenue of $579.8 million, according to S&P Global Market Intelligence. Revenue picked back up after decelerating to $544.8 million in the second quarter.
Hims & Hers also issued a fourth quarter revenue outlook that was a little light. The company expects revenue of $605 million to $625 million, while analysts had guided for $629 million. For the full year, Hims & Hers expects revenue of $2.33 billion to $2.35 billion, slightly lower than the previously guided range of $2.3 billion to $2.4 billion.
The stock jumped 5% in after-hours trading ahead of the earnings call at 5 p.m. ET. You can listen to the call with investors live here.
ON Semiconductor (ON) reported better-than-expected third quarter revenue and earnings on Monday, sending shares of the company about 4% higher in premarket trading.
For the third quarter, ON Semiconductor reported diluted earnings per share of $0.63 on revenue of $1.55 billion, compared to Wall Street estimates of earnings of $0.54 per share on revenue of $1.51 billion, according to S&P Global Market Intelligence.
Revenue and gross margins fell year over year. The chipmaker primarily manufactures semiconductors for industrial and automotive uses, and auto sales have slowed recently. However, on the earnings call, executives said AI-related revenue “approximately doubled” year over year in Q3.
“Our third quarter results exceeded expectations, underscoring the strength of our strategy and the resilience of our business model, ON CEO Hassane El-Khoury said in a statement, adding, “We’re seeing continued signs of stabilization across our core markets, as well as positive growth in AI.”
Beyond Meat (BYND) announced on Monday that it is rescheduling its third quarter earnings release for Nov. 11 after the market close. The company said it required additional time to quantify a “material” non-cash impairment charge.
Beyond Meat stock dropped 8% in premarket trading. The stock has been highly volatile as of late — it fell 25% in the past five days, but the stock also rose as much as 95% in one day in late October as it got swept into speculative meme trades.
Cipher Mining (CIFR) stock surged 17% in premarket trading on Monday after the company reported third quarter earnings that were in line with estimates and revenue below analysts’ expectations.
In Q3, Cipher reported $0.10 in earnings per share, compared to estimates of $0.11 per share. Revenue of $71.7 million fell short of estimates of $76.5 million, according to S&P Global Intelligence.
But alongside the results, Cipher announced a 15-year, $5.5 billion lease agreement with Amazon Web Services to deliver 300 megawatts of capacity for AI workloads in 2026.
Berkshire Hathaway (BRK-B, BRK-A) stock rose more than 1% on Monday trading following the release of its third quarter earnings over the weekend. The profits of Warren Buffett ‘s company improved 17% thanks to a relatively mild hurricane season and more paper investment gains this year as Berkshire Hathaway (BRK-B, BRK-A) prepares for the legendary 95-year-old investor to relinquish the CEO title in January.
AbbVie (ABBV) shares dropped 4% in midday trading on Friday after the pharmaceutical company reported higher operating expenses, as expected, and posted earnings and revenue that beat Wall Street’s expectations.
AbbVie also raised its full-year earnings guidance to a range of $10.61-$10.65 from $10.38-$10.58 previously.
Normalized earnings per share of $1.86 decreased from $3 per share a year ago but still topped analyst estimates of $1.78, according to S&P Global Market Intelligence. Revenue increased 9.1% to $15.7 billion during the quarter.
Demand for key immunology drugs remained resilient. Revenue from Skyrizi increased 46.8% and Rinvoq increased 35.3%.
However, the company’s blockbuster rheumatoid arthritis drug Humira continued to see declines, with revenue for that drug falling 55.4% compared to the third quarter of 2024. Humira lost its patent protection in 2023, and several copycat versions have entered the market since then.
