Key Takeaways
- Whirlpool (WHR) significantly cut its full-year ongoing EPS guidance to $6-$8 from approximately $10, missing analyst estimates of $8.78, and reduced its free cash flow outlook, despite a slightly raised revenue forecast.
- Cadence Design Systems (CDNS) is reportedly expected to pay over $100 million to the U.S. to settle a probe into illegal sales to a Chinese military university, a notable development alongside its Q2 earnings beat.
- Universal Health Services (UHS) and Welltower (WELL) both reported strong second-quarter results, beating revenue and adjusted EPS/FFO estimates and providing optimistic full-year guidance.
- Bain Capital is leading a $300 million funding commitment to launch a new immunology therapies company in partnership with Bristol Myers Squibb (BMY).
- Saudi Arabia's Foreign Minister stated that normalization of ties with Israel is contingent upon the establishment of a Palestinian state.
Major corporations released their second-quarter 2025 earnings reports today, with Whirlpool (WHR) delivering a significant cut to its full-year earnings per share (EPS) and free cash flow guidance. The appliance manufacturer reported Q2 revenue of $3.77 billion, missing estimates of $3.85 billion, and ongoing EPS of $1.34, well below the estimated $1.61. For the full year, Whirlpool now expects ongoing EPS between $6 and $8, a sharp reduction from its prior outlook of approximately $10, and free cash flow of $400 million, down from the previous $500 million-$600 million range.
In other corporate news, Cadence Design Systems (CDNS) is reportedly nearing a settlement of over $100 million with the U.S. regarding alleged illegal sales to a Chinese military university. This news comes as the company announced strong Q2 2025 earnings, with revenue of $1.275 billion surpassing estimates of $1.25 billion, and adjusted EPS of $1.65 beating the $1.55 estimate. Cadence Design also provided a full-year revenue guidance of $5.21 billion to $5.27 billion.
Healthcare and real estate investment trust sectors saw robust performance. Universal Health Services (UHS) reported Q2 2025 revenue of $4.28 billion, exceeding estimates of $4.23 billion, and adjusted EPS of $5.35, beating the $4.92 estimate. The company also provided an optimistic full-year revenue outlook of $17.10 billion to $17.31 billion and adjusted EBITDA guidance of $2.46 billion to $2.54 billion. Similarly, Welltower (WELL) posted Q2 2025 normalized FFO per share of $1.28, above the $1.23 estimate, and raised its full-year normalized FFO guidance to $5.06-$5.14. The company also expects full-year same-store net operating income (NOI) growth between +11.3% and +13.3%.
In the industrial sector, Nucor (NUE) reported Q2 2025 revenue of $8.46 billion, slightly below the estimated $8.54 billion, but its adjusted EPS of $2.60 surpassed the $2.55 estimate. The steel producer anticipates its Q3 earnings to be nominally lower than Q2. Hartford Insurance Group (HIG) also reported its Q2 2025 earnings, with core EPS rising to $3.41 from $2.50 year-over-year, and book value per share of $60.02 beating estimates. Revenue for Hartford was $6.99 billion, slightly below the $7.02 billion estimate.
In other significant corporate news, Bain Capital announced it is leading a $300 million funding commitment to launch a new immunology therapies company, formed in partnership with Bristol Myers Squibb (BMY).
Geopolitical developments also made headlines, with Saudi Foreign Minister Prince Faisal Bin Farhan stating that Saudi Arabia can only normalize ties with Israel after the establishment of a Palestinian state. Meanwhile, Israeli Prime Minister Netanyahu described the situation in Gaza as "difficult" and affirmed Israel's continued cooperation with the U.S., Europe, and international agencies to ensure large aid deliveries into Gaza.
On the political front, major U.S. airlines are pushing back against a proposed bill that would restrict the TSA’s use of facial recognition at airports. Additionally, Republican Senator Ted Cruz is set to unveil an aviation safety bill on Tuesday. Reports from The Wall Street Journal indicate that barriers continue to hinder U.S. agriculture despite Trump-era trade deals, and the Trump administration is considering a patent system overhaul to boost revenue. The Trump Organization also stated that sellers on Amazon, Walmart, and eBay are hawking knockoff shirts, hats, and mugs. Separately, the EU has stated that Temu is in breach of rules designed to prevent the sale of illegal products.
The major U.S. stock indices closed mostly flat, with the S&P 500 unofficially closing down 0.01% at 6,388.25, and the Dow Jones unofficially closing down 0.17% at 44,827.01.
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.