One of the busiest weeks of the earnings season is upon the financial markets, with over 150 S&P 500 companies preparing to disclose their performance. Notably, five of the “Magnificent Seven” technology giants—Apple, Amazon, Alphabet, Meta Platforms, and Microsoft—are among those slated to report earnings. Other significant players include UnitedHealth and Caterpillar. Early results for the third quarter indicate a strong start, with data from FactSet revealing that over three-quarters of the companies that have reported so far have exceeded analysts’ earnings estimates. However, some high-profile misses, particularly from Netflix and Tesla, have caused shares of those companies to decline.
As the week unfolds, investors are keenly focused on the outcomes of these key earnings reports. Here’s what to expect:
Tuesday: UnitedHealth is expected to report its earnings before the market opens, with a conference call scheduled for 8 a.m. Last quarter, the company indicated that its 2025 earnings outlook would be worse than expected. This quarter, analysts forecast a dramatic year-over-year earnings decline of about 60%. Despite the current struggles—including a roughly 30% drop in shares this year—Morgan Stanley analyst Erin Wright noted her “conviction in the turnaround,” leaving investors hoping that this report might signal a rebound. Historically, UnitedHealth beats earnings estimates 91% of the time, according to Bespoke Investment Group data, though it has missed expectations in the last two quarters.
Wednesday: Caterpillar will report its earnings in the premarket, followed by an analyst call at 8:30 a.m. After mixed results last quarter, analysts expect the construction equipment manufacturer to report a 12% year-over-year earnings decline. Attention will be on how expanded tariffs potentially affect upcoming earnings per share forecasts. Despite a 20% gain in the stock price over the past three months, expectations for lackluster results persist. Historically, while Caterpillar has missed earnings expectations the last two quarters, the stock still closed slightly higher post-release.
Later in the day, Meta Platforms is set to announce earnings after the bell, with a call at 4:30 p.m. Investors will be watching closely, particularly after last quarter’s 10% rise following a revenue beat and boosted forecasts. This time, analysts anticipate around 20% revenue growth, but there are questions about whether the previous quarter’s performance was sustainable. Positive factors include a potential return of advertising spend from China and increasing user engagement metrics. Historically, Meta sees an average gain of 2.2% on earnings days.
Alphabet will also report after the market closes, with a conference call at 5:30 p.m. Following a strong prior quarter where the company beat earnings expectations, this quarter is projected to show an 8% year-over-year earnings growth. Analysts from RBC are optimistic about a slight earnings beat, particularly noting the competitive landscape in search and YouTube advertising. Historically, Alphabet shares tend to rise on earnings days, with an average increase of 1.3%.
Microsoft is the final major tech player to report on Wednesday after the market closes, with an analyst call scheduled for 5:30 p.m. The tech giant is expected to showcase double-digit growth, buoyed by revenue from its cloud computing division, Azure. UBS maintains a positive outlook, anticipating Azure revenue growth exceeding prior guidance. Historically, Microsoft has beaten expectations 82% of the time.
Thursday: Eli Lilly is slated to report its earnings before the market opens, with a call at 10 a.m. Analysts predict a significant 400% earnings increase compared to the previous year, driven by strong sales from key products. Despite some pricing challenges, analyst Carter Gould remains optimistic, noting favorable underlying trends. Eli Lilly has consistently beaten earnings expectations for three consecutive quarters.
Amazon’s report comes after the market closes on Thursday, accompanied by a call at 5 p.m. Following a gloomy outlook overshadowing last quarter’s results, analysts expect approximately 10% earnings growth this time around. Observations from Bank of America highlight a potential revenue beat driven by Amazon Web Services. Historically, Amazon has shown modest gains in the third quarter, averaging a 1.2% rise post-results.
Finally, Apple is set to share its earnings after the market closes, with a call at 5 p.m. Analysts predict about 7% growth in both earnings and revenue, following previous reports of robust sales driven by the iPhone 17. Investors will be looking for additional signs of momentum and updates on artificial intelligence initiatives. Apple has not missed earnings expectations since 2023, although it has experienced stock declines on earnings days in the recent past.
As this pivotal week progresses, market participants will closely monitor these reports for insights into the current economic climate and future expectations.
