Key Takeaways
- GE Vernova (GEV), Boston Scientific (BSX), and Thermo Fisher (TMO) all reported stronger-than-expected Q2 2025 earnings, with revenues and EPS surpassing analyst estimates, signaling robust performance across the industrial, medical technology, and life sciences sectors.
- Hilton (HLT) exceeded Q2 expectations for adjusted EPS and EBITDA, but offered a mixed full-year outlook, slightly lowering net income guidance while raising adjusted EPS projections.
- A significant US/Japan trade deal was announced, featuring a $550 billion investment from Japan into the US and a 15% tariff on Japanese goods, while intensive EU-US trade negotiations continue with the goal of a negotiated agreement amidst preparations for potential countermeasures.
- China's crude steel output in June 2025 fell 9.2% year-over-year to 83.2 million tons, marking the largest annual decline since last August, according to Worldsteel data, indicating a significant drop in production.
- Corpay (CPAY) announced the acquisition of Alpha Group for 4,250 pence per share in cash, valued at approximately £1.805 billion, expanding its cross-border FX and private markets business.
Corporate Earnings Highlights
Several major companies reported strong second-quarter 2025 financial results, largely exceeding market expectations. GE Vernova (GEV) announced Q2 revenue of $9.11 billion, surpassing estimates of $8.8 billion, and adjusted EPS of $1.86, well above the $1.67 estimate. The company also provided an optimistic outlook, raising its full-year adjusted free cash flow guidance to $3.8 billion to $3.5 billion from a previous $2 billion to $2.5 billion, and projecting full-year revenue at the high end of its $36 billion to $31 billion range.
Boston Scientific (BSX) also delivered a strong performance, reporting Q2 revenue of $5,061 million against an estimate of $4,892 million. The medical technology firm posted net income of $795 million and EPS of $0.53. Similarly, Thermo Fisher (TMO) beat expectations with adjusted EPS of $5.36 (vs. est. $5.24) and revenue of $10.86 billion (vs. est. $10.69 billion), driven by 2% organic revenue growth.
In the hospitality sector, Hilton (HLT) reported Q2 adjusted EPS of $2.20, exceeding the $2.04 estimate, and adjusted EBITDA of $1.01 billion against an estimated $962.9 million. Despite strong Q2 results, Hilton's full-year net income guidance was adjusted downwards to $1.64 billion to $1.68 billion from $1.71 billion to $1.75 billion. However, the company raised its full-year adjusted EPS outlook to $7.83 to $8.00 from $7.76 to $7.94 and anticipates 6% to 7% net unit growth for the year.
Global Trade and Economic Shifts
Geopolitical and trade developments are significantly influencing market sentiment. The US market open saw a boost in sentiment following a new US/Japan trade deal. This agreement includes a substantial $550 billion investment from Japan into the United States and the imposition of a 15% tariff on Japanese goods.
Meanwhile, the European Union Commission is engaged in intensive technical and political level contact with the United States, with the primary goal of reaching a negotiated trade agreement. EU Trade Commissioner Šefčovič is scheduled to meet with Secretary Lutnick, as the Commission prepares for all possible outcomes, including additional countermeasures, and has announced the merge of Lists 1 & 2 to clarify, simplify, and strengthen these measures.
In economic data, China's crude steel output experienced a notable decline in June 2025, falling 9.2% year-over-year to 83.2 million tons. This represents the largest annual drop since August 2024, as reported by Worldsteel.
Mergers and Acquisitions
In the financial services sector, Corpay (CPAY) announced a significant acquisition, agreeing to purchase Alpha Group for 4,250 pence per share in cash. This transaction values Alpha Group's entire issued share capital at approximately £1.805 billion on a fully diluted basis.
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.