The fourth quarter earnings season continues with impressive results from Alphabet, Amazon, AMD, Qualcomm, and Palantir. Analysts estimate a 13% increase in S&P 500 earnings per share for the fourth quarter, marking the 10th consecutive quarter of annual earnings growth and the fifth consecutive quarter of double-digit growth. Tech companies have been driving this earnings growth trend. Big Tech spending on AI sets the tone for the trade, with themes from 2025 like AI, economic policies, and a K-shaped consumer economy still influencing investor decisions. Updates from Disney, Chipotle, PepsiCo, Uber, and Snap were shared this week, with more results expected from Coca-Cola, Spotify, Robinhood, Lyft, Ford, Rivian, Moderna, Airbnb, and Coinbase in the coming week.
As of February 6, over half of S&P 500 companies have reported fourth quarter results, with BlackRock noting three emerging themes: Peloton reported a lackluster quarter, with a wider loss per share than expected and declining subscriptions. Philip Morris forecasts weaker-than-expected full-year profit, with earnings per share below estimates. Toyota announced a CEO change and reported fourth quarter results, exceeding expectations. Strategy reported a quarterly loss after a bitcoin sell-off, with operating loss and net loss figures below expectations. Roblox and Reddit reported strong revenue forecasts, while Amazon’s Q4 earnings beat expectations but a $200B spending projection led to a stock dip. Shell reported a profit miss but announced a $3.5B share buyback. Arm Holdings shares fell as licensing sales missed estimates, while e.l.f. Beauty stock jumped on upbeat profit guidance. Snap reported upbeat fourth quarter revenue, and Qualcomm’s stock dropped on a memory chip shortage outlook. Hershey’s outlook topped estimates, while Estée Lauder shares fell due to tariff concerns. Cigna’s 2026 forecast missed Wall Street expectations, and Maersk’s Q4 met forecasts but falling freight rates may impact 2026 profits.
Eaton Corporation’s CEO noted a growing backlog of orders, particularly in data centers, as demand continues to rise due to the AI arms race. The company’s stock price has surged after strong fourth quarter results, with revenue outperforming last year but falling slightly below analyst expectations. The CEO attributed much of the success to demand from AI hyperscalers, with optimism for the future driven by ongoing projects.
Read more at Yahoo Finance: Amazon, Reddit stocks sink to cap jam-packed earnings week