Key Takeaways
- Microsoft (MSFT) and Meta Platforms (META) reported strong Q2 2025 earnings, surpassing analyst expectations, with Microsoft's cloud and AI segments driving significant revenue growth and Meta's core ad business showing robust performance alongside ambitious AI plans.
- Ford (F) reinstated its full-year outlook but anticipates a substantial $2 billion tariff hit, leading to a projected profit decline of up to 36% for the year.
- Prudential Financial (PRU) and Allstate (ALL) both exceeded Q2 2025 earnings estimates, with Prudential's adjusted operating EPS at $3.58 and Allstate's adjusted EPS rising to $5.94.
- Robinhood (HOOD) delivered a strong Q2 2025 performance, with net revenue reaching $989 million and adjusted EBITDA of $549 million, significantly beating estimates, driven by increased trading in crypto, options, and equities.
- The U.S. imposed a 50% tariff on copper pipes and wiring, effective August 1st, as part of President Trump's efforts to strengthen the domestic copper industry.
Major technology companies Microsoft (MSFT) and Meta Platforms (META) announced impressive second-quarter 2025 earnings, exceeding Wall Street expectations. Microsoft's revenue reached $76.44 billion and EPS hit $3.65, driven by strong performance in its Intelligent Cloud segment, particularly Azure, which surpassed $75 billion in annual revenue with 34% growth. Meta Platforms reported 22% revenue growth, reaching $47.52 billion, with an EPS of $7.14, signaling the continued strength of its core advertising business and highlighting CEO Mark Zuckerberg's ambitions in AI. Qualcomm also reported strong earnings, citing growth in Meta smartglasses.
In the automotive sector, Ford (F) reinstated its full-year outlook, projecting adjusted EBIT between $6.5 billion and $7.5 billion. However, the company anticipates a significant $2 billion tariff hit for the year, more than previously expected, which will reduce earnings by as much as 36%. Ford's Q2 revenue was $25.88 billion, beating estimates, with adjusted EBIT at $2.1 billion.
Financial services companies also reported robust results. Prudential Financial (PRU) posted Q2 2025 adjusted operating EPS of $3.58, surpassing the estimated $3.22, and adjusted operating income of $1.67 billion. Allstate (ALL) saw its adjusted EPS rise to $5.94 from $1.61 a year ago, significantly exceeding analyst expectations, though net premiums written of $15.05 billion fell below estimates.
Online brokerage Robinhood (HOOD) announced strong Q2 2025 earnings, with net revenue of $989 million and adjusted EBITDA of $549 million, both well above estimates. The company's EPS was 42 cents, and it saw increased revenue from options, crypto, and equities trading.
In the semiconductor equipment industry, Lam Research (LRCX) reported Q4 2025 adjusted EPS of $1.33, beating estimates, and revenue of $4.66 billion. The company also provided optimistic Q1 2026 guidance, with adjusted EPS projected between $1.10 and $1.30 and revenue between $4.9 billion and $5.5 billion.
E-commerce giant eBay (EBAY) also exceeded expectations in Q2 2025, with revenue of $2.70 billion and adjusted EPS of $1.37. The company's Gross Merchandise Volume (GMV) reached $19.5 billion.
In trade news, President Donald Trump announced a 50% tariff on imports of semi-finished copper products, including pipes and wiring, effective August 1st. This move is aimed at strengthening the domestic copper industry. Additionally, the U.S. imposed sanctions on a global shipping and smuggling network allegedly controlled by Mohammad Hossein Shamkhani, the son of Iran's former national security chief, citing its involvement in transporting Iranian and Russian oil.
Finally, the US Centers for Disease Control and Prevention (CDC) is reportedly planning to issue a travel notice for China due to a rise in chikungunya infections.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.