Key Takeaways
- Uber (UBER) reported robust second-quarter results, beating estimates across key metrics and providing strong third-quarter guidance, alongside announcing an additional $20 billion share buyback program.
- McDonald's (MCD) delivered a comprehensive beat in Q2 2025, with revenue, adjusted EPS, and comparable sales all exceeding analyst expectations.
- Shopify (SHOP) showcased strong operational income, revenue, and gross merchandise volume, though its monthly recurring revenue fell slightly short of estimates.
- US MBA Mortgage Applications saw a significant rebound, increasing by 3.1% as the 30-year mortgage rate experienced a slight decline.
Major corporations are kicking off earnings season with strong performances, providing a boost to market sentiment. Ride-sharing giant Uber (UBER), fast-food titan McDonald's (MCD), and e-commerce platform Shopify (SHOP) all reported their second-quarter 2025 results, largely exceeding analyst expectations. Concurrently, the latest data on US mortgage applications indicates a positive shift in the housing market.
Uber (UBER) was a standout performer, reporting a second-quarter revenue of $12.65 billion, surpassing the estimated $12.48 billion. The company's adjusted EBITDA reached $2.12 billion, also beating the $2.09 billion estimate. Gross Bookings for the quarter hit $46.76 billion, exceeding the $46.42 billion forecast. Looking ahead, Uber provided an optimistic outlook for the third quarter, projecting Gross Bookings between $48.25 billion and $49.75 billion (vs. an estimated $47.58 billion) and adjusted EBITDA in the range of $2.19 billion to $2.29 billion (vs. an estimated $2.22 billion). In a significant move, the company also announced plans to buy back up to an additional $20 billion in shares, signaling strong confidence in its future performance and commitment to shareholder returns.
McDonald's (MCD) also reported a strong second quarter for 2025, with revenue reaching $6.84 billion, comfortably above the $6.7 billion estimate. The company's adjusted earnings per share (EPS) came in at $3.19, outperforming the $3.14 estimate and marking a significant increase from $2.80 year-over-year. Crucially, McDonald's demonstrated robust comparable sales growth across all segments. International Operated Markets (IOM) comparable sales surged 4% (vs. an estimated 1.84%), while International Developmental Licensed Markets (IDL) saw an impressive 5.6% increase (vs. an estimated 3.64%). US comparable sales grew by 2.5% (vs. an estimated 2.33%), contributing to an overall comparable sales increase of 3.8% (vs. an estimated 2.49%).
E-commerce giant Shopify (SHOP) posted solid second-quarter results, with operational income reaching $291 million, significantly exceeding the estimated $247.7 million. The company's revenue for the quarter was $2.68 billion, surpassing the $2.55 billion estimate, and Gross Merchandise Volume (GMV) stood at $87.84 billion, well above the $81.65 billion estimate. However, Shopify's Monthly Recurring Revenue (MRR) for the quarter was $185 million, slightly missing the $192.3 million estimate.
In the real estate sector, the latest data from the US Mortgage Bankers Association (MBA) showed a notable improvement in mortgage activity. US MBA Mortgage Applications for August 1 increased by 3.1% week-over-week, a significant reversal from the previous week's -3.8% decline. This uptick coincided with a slight decrease in the 30-year mortgage rate, which fell to 6.77% from the previous 6.83%.
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.