The revenue reports of technology giants are on the way!

A Busy Earnings Season in the Markets

In the markets, one of the most active weeks is being experienced with the third-quarter earnings reports. The results of major technology companies constitute an important part of this period. As of October 24, S&P 500 companies have reported their results, with 29% having announced their earnings, and analysts expect a 9.2% increase in earnings per share for the third quarter. If this occurs, it will mean positive earnings growth for the ninth consecutive quarter; however, this growth represents a slowdown compared to the 12% growth recorded in the second quarter of this year.

Expectations for the third quarter have come in slightly lower as analysts anticipate a 7.9% increase in earnings per share for S&P 500 companies.

This week, five of the "Magnificent Seven" technology companies — Microsoft (MSFT), Alphabet (GOOG), Meta (META), Apple (AAPL), and Amazon (AMZN) — will report their earnings, representing nearly a quarter of the S&P 500.

Additionally, other notable companies such as Boeing (BA), Visa (V), Starbucks (SBUX), UnitedHealth Group (UNH), Verizon (VZ), Mastercard (MA), Chipotle (CMG), Merck & Co. (MRK), Shell (SHEL), Exxon Mobil (XOM), Chevron (CVX), Coinbase (COIN), Caterpillar (CAT), ServiceNow (NOW), Anheuser-Busch InBev (BUD), and Eli Lilly (LLY) will also announce their updates this week.

Recent Developments

Merck (MRK) saw a decline of more than 2% in pre-market trading. Although the company’s revenues exceeded Wall Street analysts’ expectations, significant patent expirations expected are worrying investors. Merck reported earnings of $2.58 per share, with revenues of $17.2 billion. However, Gardasil sales fell by 24% to $1.7 billion.

Comcast (CMCSA) managed to slow subscriber loss in the third quarter, with its shares rising by more than 1%.

Eli Lilly (LLY) shares gained 6% after raising its year-end profit forecast.

Chipotle (CMG) CEO Scott Boatwright noted a decline in sales for October due to pressure on consumers, emphasizing reduced demand from high-income households.

Carvana (CVNA) reported a 55% revenue increase in the third quarter, highlighting the advantages of its vertically integrated business model.

Alphabet (GOOG) is expected to provide more details in its earnings report about how the AI boom has shaped the company's business model. Microsoft will report its first-quarter results, offering Wall Street the latest data on the company's AI and cloud growth.