Earnings week reveals mixed results across major industries

Over 170 companies, including Apple, Amazon, Meta, and Chipotle, reported their earnings this week, showcasing whether they hit or missed Wall Street estimates.

Amazon and Apple delivered strong revenue driven by AI, cloud services, and iPhone sales. Consumer brands like Crocs, Hershey, and Chipotle are battling cost pressures, weaker demand, and shifting consumer habits.

Apple beat expectations with earnings per share of $1.85 and revenue of $102.5 billion, but iPhone sales of $49.03 billion narrowly missed forecasts. Its shares rose 3% after CEO Tim Cook projected record December-quarter revenue and noted that the iPhone 17 is facing supply constraints due to high demand.

Amazon reported a strong quarter with earnings per share of $1.95 and revenue of $180.2 billion, both above estimates. Its AWS division brought in $33 billion, up 20% year-over-year, signaling renewed growth.

CEO Andy Jassy said the recent layoffs of 14,000 corporate workers were due to overhiring, and not because of AI integration or financials.

Meta also hit record revenue but warned investors that it plans to ramp up AI spending aggressively next year, erasing more than $200 billion in market value as investors grew wary of an AI bubble.

Microsoft and Alphabet both beat expectations and announced increased AI investments.

Surprisingly, Caterpillar enjoyed one of its strongest stock rallies in over 20 years, fueled by growing demand for AI data center generators.

In retail, Chipotle lowered its full-year guidance for the third consecutive quarter due to declining foot traffic, sending its stock down 18%.

Crocs’ stock jumped 7% after the company topped expectations despite weaker results.

Gaming platform Roblox’s shares fell roughly 16% after the company announced higher safety and infrastructure expenses.

Analysts expect the S&P 500 companies’ earnings per share to rise 9.2% this quarter, according to FactSet.