The Indianapolis-based firm reported adjusted earnings of $7.02 per share on revenue that soared 54% year- over-year to $17.60 billion for the third quarter. Analysts surveyed by Visible Alpha had expected $5.91 and $16.06 billion, respectively. Mounjaro sales more than doubled to $6.52 billion, topping projections of $5.41 billion. Sales of Zepbound nearly tripled to $3.59 billion, while analysts had estimated $3.37 billion. Why This News Matters Eli Lilly, the maker of weight-loss drug Zepbound, lifted it ...

Chipotle has repeatedly cut its sales projections this year. David Paul Morris / Bloomberg via Getty Images Close Key Takeaways The Newport Beach, Calif.-based company reported third-quarter revenue of $3.00 billion, up 7.5% year-over- year but below the $3.06 billion consensus estimate of analysts polled by Visible Alpha. Adjusted earnings of $0.29 per share matched expectations. Chipotle shares entered Thursday having lost about a third of their value this year. With today's sharp decline, the stock is tr ...

Core Insights - Microsoft reported a significant increase in capital expenditures, reaching $34.9 billion in the fiscal first quarter, up from $24.2 billion in the previous quarter, primarily to enhance its AI infrastructure [1][7] - The company plans to double its data center footprint over the next two years to meet the growing demand for AI services [2] - Microsoft's strong quarterly results, with earnings per share of $3.72 and revenue of $77.7 billion (an 18% year-over-year increase), indicate robust demand for its cloud and AI offerings [4] Financial Performance - Earnings per share for the fiscal first quarter were $3.72, exceeding analysts' expectations [4] - Revenue from the Intelligent Cloud division, which includes Azure, rose 28% to $30.9 billion, surpassing the anticipated $30.3 billion [4] - Microsoft expects current-quarter revenue to be between $79.5 billion and $80.6 billion, slightly below analysts' consensus of $80.14 billion [5] Market Reaction - Following the earnings report, Microsoft shares experienced a decline of about 2% in extended trading, despite a nearly 30% increase for the year 2025 through Wednesday's close [5]

Core Insights - Meta's earnings report for the third quarter revealed a significant earnings miss, primarily due to a nearly $16 billion tax charge related to the "One Big Beautiful Bill" signed by President Trump, which caused a 9% drop in its stock price during extended trading [1][2][3][5][8] - The company's earnings per share (EPS) fell to $1.05, an 85% decrease year-over-year, and well below the expected $6.70 from analysts. Without the tax charge, EPS would have been $7.25, exceeding analyst expectations [3][4] - Meta's revenue increased by 26% year-over-year, reaching a record $51.24 billion, surpassing analyst projections [4] Financial Performance - The reported EPS of $1.05 is a stark contrast to the previous year's figure and highlights the impact of the tax charge [3] - Revenue growth of 26% year-over-year indicates strong operational performance despite the tax-related setback [4] - The company has raised its capital expenditures forecast to a range of $70 billion to $72 billion, reflecting ongoing investments in AI development [4][5] Future Outlook - Meta anticipates fourth-quarter revenue between $56 billion and $59 billion, which is above analyst consensus [6] - The company expects a "significant reduction" in U.S. federal cash tax payments starting in 2025, which may improve future profitability [6]

Core Insights - Alphabet reported third-quarter results that exceeded analysts' expectations, marking the first time the company surpassed $100 billion in revenue, with earnings per share of $2.87, up from $2.12 year-over-year, and revenue of $102.3 billion, reflecting a 16% year-over-year increase [2][4][7] Revenue Breakdown - Google Cloud service generated $15.16 billion in revenue, up from $11.35 billion last year, surpassing the analyst consensus of $14.77 billion [3] - The Search and Other segment achieved $56.57 billion in revenue, a 14.5% increase year-over-year, exceeding estimates [3][7] Growth Significance - All segments of Alphabet experienced at least 10% revenue growth compared to the previous year, alleviating concerns about potential slowdowns in Google Search due to the rise of AI chatbots like ChatGPT [4][7] Capital Expenditure Plans - Alphabet's CEO indicated that the company is increasing its capital expenditures forecast for the year to between $91 billion and $93 billion, up from a previous estimate of $85 billion, to support data center expansion and AI infrastructure [5][6] Stock Performance - Following the earnings report, Alphabet's Class A shares rose over 5% in after-hours trading, with a total gain of 45% since the beginning of 2025 [6]

Market Overview - Major U.S. equities indexes ended mixed after the Federal Reserve announced a quarter-point cut to its benchmark interest rate, with Fed Chair Jerome Powell cautioning against assumptions of further cuts in December [3][8] - The S&P 500 finished flat, the Dow Jones Industrial Average fell 0.2%, while the tech-heavy Nasdaq advanced 0.6% [4] Company Performance - Teradyne (TER) shares surged 20.5% after exceeding third-quarter sales and profit estimates, driven by strong AI demand for semiconductor testing equipment [5] - Seagate Technology Holdings (STX) reported better-than-expected third-quarter results, with a 19.1% stock increase, attributed to AI-driven demand for its heat-assisted magnetic recording drives [6] - Centene (CE) shares rose 12.5% following a surprise profit in the third quarter and an increase in full-year guidance, supported by higher demand for Medicare and Medicaid services [7] Underperforming Companies - Fiserv (FI) shares plummeted 44% after missing quarterly revenue and earnings estimates, leading to a cut in full-year forecasts [10] - Verisk Analytics (VRSK) topped adjusted profit forecasts but fell short on revenue, resulting in a 10.4% drop in shares due to low severe weather claims [11] - CoStar Group (CSGP) exceeded sales and profit forecasts but revised its full-year earnings forecast downward, leading to a 9.9% decline in shares [11]

Core Insights - Etsy's shares fell nearly 9% following the announcement of a leadership change, but are still up about 30% year-to-date [1][4] - CEO Josh Silverman will step down at the end of 2025, with President and Chief Growth Officer Kruti Patel Goyal taking over [2][6] - Silverman will transition to the role of executive chair until the end of 2026, emphasizing the timing is right for new leadership [2][3] Company Performance - Etsy reported better-than-expected third-quarter results, with earnings per share of $0.63 and revenue of $678 million, a 2.4% year-over-year increase [3][6] - Despite the positive earnings, gross merchandise sales declined by 6.5% to $2.72 billion, influenced by the sale of the music gear marketplace Reverb [3][6] - Investors are likely to monitor how the new CEO will address competition and marketplace growth challenges [2][3]

Close Key Takeaways Fiserv shares are on pace for their worst day ever Wednesday after the fintech company released a disappointing earnings report and announced key leadership changes. Fiserv shares have lost nearly two-thirds of their value since the start of the year. Cheng Xin / Getty Images The Milwaukee-based company, which provides payments processing and digital banking services, reported adjusted earnings of $2.04 per share on revenue that grew 1% year-over-year to $5.26 billion. Analysts surveyed ...

Nvidia - Nvidia shares surged 5% to an all-time high following CEO Jensen Huang's keynote at the developers conference, highlighting the company's pivotal role in the AI boom [3][7] - The company announced a $1 billion investment in Nokia, which saw its shares increase by nearly 23%, and a collaboration with Oracle to build AI supercomputers for the U.S. Department of Energy [3][7] - Nvidia is also partnering with Palantir Technologies to develop an integrated AI technology stack [3] Regeneron Pharmaceuticals - Regeneron shares rose close to 12% after reporting stronger-than-expected quarterly earnings, driven by robust sales of eczema treatment Dupixent and skin cancer treatment Libtayo [4] Skyworks Solutions and Qorvo - Skyworks Solutions and Qorvo announced a merger plan, with both companies' shares increasing by about 6% amid challenges from major customer Apple, which is developing its own modem chips [5] United Parcel Service (UPS) - UPS shares increased by 8% after exceeding analysts' estimates for third-quarter revenue and adjusted earnings per share, indicating progress on a turnaround plan that includes operational streamlining and workforce reduction [6][8] Alexandria Real Estate Equities - Alexandria Real Estate Equities missed estimates for third-quarter revenue and adjusted funds from operations (AFFO), leading to a nearly 20% drop in shares, the largest decline among S&P 500 constituents [9] Royal Caribbean Cruises - Royal Caribbean shares fell 8.5% after reporting third-quarter revenue slightly below expectations and a weaker-than-expected outlook for the fourth quarter, impacted by weather disruptions and increased operating costs [10]

Core Insights - Amazon plans to cut approximately 14,000 jobs from its white-collar workforce, marking a significant move among large U.S. companies despite strong business performance [2][4][6] Group 1: Job Cuts and Corporate Strategy - The layoffs are described as Amazon's largest corporate job cuts to date, aimed at streamlining operations and reallocating resources towards artificial intelligence and other growth priorities [4][7] - Amazon's Senior Vice President of People Experience and Technology, Beth Galleti, stated that the company needs to be organized more leanly with fewer layers to enhance agility and ownership [3][6] - The company is expected to report growing revenue and profits in its upcoming third-quarter results, indicating a paradox of job cuts amid strong financial performance [2][4] Group 2: Industry Trends - The job cuts at Amazon reflect a broader trend in the tech industry, where companies like Oracle, Microsoft, and Alphabet are also reducing white-collar positions to fund AI investments [9] - Analysts suggest that the tech giants' plans to invest hundreds of billions in artificial intelligence infrastructure are driving the need to lower headcounts [9] - Other companies, such as UPS and Chegg, have also announced significant job cuts, indicating a wider restructuring trend across various sectors [10][11]