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Second quarter earnings season is in full swing, and the results have been largely positive so far, with more positive surprises than negative ones.
Companies had a lower bar to clear coming into the quarter, as analysts tempered their expectations amid President Trump’s tariffs, stocks’ lofty valuations, and uncertainty about the health of the US economy.
This week, investors hear from Tyson (TSN), AMD (AMD), Snap (SNAP), McDonald’s (MCD), Disney (DIS), Uber (UBER), Lyft (LYFT), Palantir (PLTR), and more when they report results.
Data from FactSet published Friday showed that with 66% of the index having reported results, analysts expect S&P 500 companies to report a 10.3% jump in earnings per share during the second quarter.
Heading into the quarter, analysts expected S&P 500 earnings to rise 5% in Q2, which would mark the slowest pace of earnings growth since the fourth quarter of 2023.
Here are the latest updates from corporate America.
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Peloton stock soars on swing to profit
Peloton (PTON) swung to a profit in its fiscal fourth quarter, posting earnings of $21.6 million, or $0.05 per share, compared to estimates for a loss of $0.05 per share and a loss of $0.08 per share last year.
Revenue fell to $606.9 million, but still topped estimates for $579.9 million in the quarter. The stock jumped over 8% in premarket trading.
The fitness platform announced it launched a cost-cutting plan intended to achieve $100 million in savings by the end of fiscal year 2026, which includes layoffs. “This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business,” CEO Peter Stern said in a shareholder letter.
Peloton’s outlook for the upcoming year includes $2.4 billion to $2.5 billion in total revenue, a 51% gross margin, and $400 million to $450 million of adjusted EBITDA.
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Duolingo surges as AI-led growth, forecast raise boost investor confidence
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Warner Bros. Discovery posts surprise profit
Warner Bros. Discovery (WBD) stock climbed 3% in premarket trading after the company reported a surprise second quarter profit.
The international rollout of HBO Max in Australia, a strong quarter for box office hits from the studio division, and streaming series like “The Pitt” helped boost results.
The company reported profits of $0.63 per share on revenue of $9.8 billion, compared with expectations for a loss of $0.21.
Higher box office sales boosted theatrical revenue by 38%, driven by box office hits “A Minecraft Movie,” “Sinners,” and “Final Destination: Bloodlines.”
Warner Bros. added 3.4 million global streaming subscribers in the quarter, raising the overall number to 125.7 million. Streaming advertising revenue increased 17%, largley driven by an increase in ad-lite subscribers.
The company is restructuring into two media companies — studio-focused Warner Bros and cable-centric Discovery Global — and is expanding its streaming network globally by bringing the Warner Bros and DC universes to international markets.
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Eli Lilly second quarter earnings beat estimates, but stock dives on GLP-1 pill trial results
Yahoo Finance’s Anjalee Khemlani reports:
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One call out on Airbnb
Airbnb (ABNB) stock is getting hit on some cautious earnings call commentary. The company is also making some key investments in the back half of the year that will weigh on margins.
If there is any positive here, it’s that when I caught up with Airbnb’s CFO Ellie Mertz about the results, I got the sense demand is staying solid.
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SoftBank swings to profit on vision fund gains ahead of AI push
Bloomberg News reports:
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Sony in-demand games and music help allay Trump tariff fears
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Toyota warns of $9.5B tariff hit, slashes annual profit forecast
Japan’s Toyota Motor (TM) stock fell over 1% in premarket trading on Thursday after saying it expected a nearly $10 billion hit from President Trump’s tariffs on cars imported into the US.
Reuters reports;
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E.l.f. stock falls as tariffs compress margins, weigh on profits
E.l.f. Beauty (ELF) stock fell after hours as tariffs began to weigh on the mass market beauty company’s profits.
Net sales rose 9% to $353.7 million, in line with analysts’ estimates, according to S&P Global Market Intelligence. Diluted earnings per share were $0.58, compared with analysts’ estimates of $0.65 per share.
The company said gross margins decreased approximately 215 basis points to 69%, primarily driven by tariffs. During the quarter, e.l.f. raised prices by $1 to help offset some of the higher prices from tariffs, as most of its product mix is produced overseas, especially in China.
E.l.f. did not provide a full-year financial outlook due to uncertainty from tariffs, but said it expects net sales to grow above 9% in the first half of the 2026 fiscal year, but margins to compress to 20%, compared to 23% the year prior.
It did complete its acquisition of Hailey Bieber’s rhode beauty brand on Aug. 5, the company said.
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Duolingo raises annual forecast, boosting shares
Reuters reports:
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Bumble paying users decline 8%, company appoints new CFO
Bumble (BMBL) on Wednesday announced that Kevin Cook will transition into the CFO role on Aug. 12, succeeding the company’s interim CFO Ronald J. Fior.
Shares of the online dating app dropped 8% after hours, however, following less-than-stellar second quarter results showing limited progress so far from the company’s turnaround efforts.
Revenue decreased 7.6% annually to $248.2 million, compared to $268.6 million last year. Analysts were expecting revenue of $245 million. Total paying users also decreased 8.7% to 3.8 million, compared to 4.1 million the previous year.
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Lyft stock slides after results failed to impress
Lyft (LYFT) stock slid after hours after the ride-hailing company missed second quarter revenue estimates on Wednesday amid heightened competition with Uber (UBER) and weakening demand.
However, Lyft raised its guidance for gross bookings in the current quarter to between $4.65 billion and $4.80 billion, well above estimates of $4.59 billion.
Here are Lyft’s top- and bottom-line results for the quarter, compared to S&P Global Market Intelligence consensus estimates:
Earlier in the day, rival Uber reported it saw trips surge 18% year over year, putting pressure on Lyft to report impressive results. While Uber stock popped earlier in the day, it closed about 0.2% lower on the day.
Reuters reports:
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Airbnb earnings top estimates, company announces $6 billion in stock buybacks
Airbnb (ABNB) stock wavered in after-hours trading after better-than-expected earnings, a slight guidance lift, and a new $6 billion stock buyback program.
The company said it saw stable travel demand and booking lead times in the second quarter despite global economic uncertainty.
Net income grew 16% year over year to $642 million, the company reported, with earnings per share coming in at $1.03 versus $0.94 estimated.
Revenue rose 13% year over year, reaching $3.1 billion, above estimates for $3.02 billion.
For the third quarter, Airbnb expects revenue between $4.02 billion and $4.10 billion, the midpoint of which is higher than analysts’ average estimate of $4.05 billion.
Airbnb also announced a new stock buyback program to purchase up to an additional $6 billion of Class A common stock.
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DoorDash stock pops after earnings beat across all metrics as consumers paid up for convenience
DoorDash (DASH) reported second quarter results that beat on both the top and bottom lines on Wednesday, with its orders also rising more than forecast.
Earnings per share came in at $0.65, $0.20 more than the Street had forecast. Adjusted EBITDA reached $655 million in the quarter.
Revenue grew 25% year over year to $3.28 billion, compared to the $3.17 billion the Street predicted.
Total orders, which means all orders through its marketplaces and commerce platform, also jumped 20% to 761 million in the quarter. That’s more than the 749 million analysts had anticipated.
Shares rose as much as 3% after the results.
Marketplace GOV, which is the total dollar value of transactions completed through the marketplace, including taxes, tips, and fees related to DashPass and its international platform Wolt+, clocked in at $24.2 billion compared to the expected $23.6 billion.
Year to date, the stock has been on a tear, up more than 50%, compared to the S&P 500’s (^GSPC) 8% gain.
The company said total orders were driven by strength in the US restaurant category, as its DashPass membership members ordered more frequently.
It added that it continues to “improve the value proposition” for its DashPass membership.
DoorDash expects marketplace GOV in the current quarter to come in between $24.2 billion and $24.7 billion. Adjusted EBITDA is expected to fall between $680 million and$780 million in its third quarter.
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Shopify stock soars on upbeat forecast, 31% revenue growth
Shopify (SHOP) stock surged 18% before the opening bell after the commerce technology company provided an upbeat forecast and positive results.
Gross profit rose to $1.3 billion in the quarter, while revenue reached $2.68 billion, compared to estimates of $2.54 billion. Shopify’s second quarter revenue marked a 31% increase from a year ago as the company benefited from investments in product features and artificial intelligence.
For the third quarter, Shopify anticipates revenue to grow at a mid-to-high twenties percentage rate on a year-over-year basis. Gross profit dollars are expected to grow at a low-twenties percentage rate annually.
“Today’s results are the payoff from bold bets we made years ago,” Shopify president Harley Finkelstein said in a statement. “The investments we’re making now will fuel our next chapter.”
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Uber beats second quarter estimates, unveils $20 billion stock buyback program
Uber (UBER) stock gained around 1% in premarket trading after the ride-hailing company announced a $20 billion stock buyback program and lifted its bookings guidance for the third quarter.
Uber’s second quarter profits rose to $0.63 per share from $0.47 per share a year ago, roughly in line with estimates. Revenue topped estimates at $12.66 billion for the quarter, compared to $12.46 billion expected.
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Novavax beats quarterly revenue estimates on milestone payment
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Novo Nordisk misses Wall Street estimates for Q2 earnings on slower GLP-1 sales
Novo Nordisk (NVO) missed estimates on the top and bottom lines for the second quarter, sending shares about 2.5% lower in premarket trading.
The company reported earnings per share of $5.96, falling short of the $6.06 earnings per share Wall Street expected. Revenue barely missed estimates, coming in at $11.95 billion versus estimates of $11.97 billion. Novo Nordisk reported overall sales rose 16% year over year.
Yahoo Finance’s Anjalee Khemlani reports that its two blockbuster diabetes and weight-loss drugs — Wegovy and Ozempic — brought in about two-thirds of total revenue reported in the quarter, or $7.9 billion.
Anjalee writes:
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McDonald’s stock rises after company reverses US sales slump
McDonald’s (MCD) reported a return to sales growth in the second quarter, as global comparable sales jumped 3.8%, above analysts’ estimates for a 2.5% increase.
US same-store sales increased 2.5% in the company’s fiscal second quarter, marking a turnaround from the 3.6% drop in the first quarter and above estimates of 2.3%. US same-store sales fell 0.7% in the same quarter last year.
McDonald’s stock rose 3.6% in premarket trading.
Yahoo Finance’s Brooke DiPalma reports:
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Disney lifts profit outlook as parks, streaming drive Q3 earnings beat
Yahoo Finance’s Allie Canal reports:
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