Third Quarter Earnings Reports and Market Reactions

Third Quarter Earnings Season Has Begun

The third quarter earnings season is in full swing. This week, Palantir (PLTR), AMD (AMD), and Supermicro (SMCI) are revealing their results, focusing on artificial intelligence.

It seems the earnings season has made a positive start. As of October 31, S&P 500 companies have reported 64% of their results, and analysts expect a 10.7% increase in earnings per share for the third quarter. If this trend continues, it will mark four consecutive quarters of double-digit earnings growth, although this is lower than the 12% earnings growth recorded in the second quarter of this year.

Initial expectations for the quarter were slightly lower, as analysts had forecasted a 7.9% earnings increase for S&P 500 companies in the third quarter.

This week, companies benefiting from artificial intelligence, such as Palantir, AMD, Supermicro, Constellation Energy (CEG), Qualcomm (QCOM), and Arm Holdings (ARM), will provide quarterly updates.

Other noteworthy results are expected from Uber (UBER), Pfizer (PFE), Spotify (SPOT), Marriott (MAR), Novo Nordisk (NVO), McDonald's (MCD), AppLovin (APP), Robinhood (HOOD), DoorDash (DASH), Snap (SNAP), AstraZeneca (AZN), Airbnb (ABNB), and Warner Bros. Discovery (WBD).

Latest Developments from Snap and Moderna

Snap (SNAP) gained over 22% after reporting better-than-expected earnings. The company offered a strong forecast and announced a partnership with Perplexity AI. Under the partnership, Perplexity will pay Snap $400 million starting in early 2026.

In the third quarter, Snap reported a loss of $0.06 per share. The company's revenue reached $1.5 billion, an increase of 10% year-over-year. For the fourth quarter, revenue expectations are between $1.68 billion and $1.71 billion.

Moderna (MRNA) reported a smaller-than-expected loss in the third quarter despite a decline in COVID-19 vaccine sales. The company generated $1 billion in revenue during the third quarter.

For the third quarter, it reported a loss of $0.51 per share, much lower than the expected loss of $2.18 per share.

Moderna narrowed its revenue forecast for 2025 to between $1.6 billion and $2 billion.

Information on E.l.f. Beauty and Chime Financial

E.l.f. Beauty, Inc. (ELF) shares fell more than 21% after the company provided a disappointing forecast for 2026. The company expects net sales to be between $1.55 billion and $1.57 billion. CFO Mandy Fields attributed the weak outlook to tariffs.

Chime Financial (CHYM) reported a 29% year-over-year revenue growth in the September quarter and saw its shares rise 5% after recording new member growth.

Following the third-quarter results, shares of AppLovin (APP) rose 4%. The company reported results that exceeded analysts' expectations.