Palantir, Alphabet Ride A Double-Sized Earnings Boom Wall Street Barely Saw Coming
Investors spent much of the second quarter bracing for an energy shock and fretting over an AI bubble. Corporate earnings have delivered the opposite story so far, with a profit surge running roughly twice as strong as Wall Street expected. PLTR stock is climbing. See the chart and price action here. Oppenheimer reports that 306 S&P 500 companies, or 61% of the index, had posted results through July 31, according to Oppenheimer’s market strategy note. Combined earnings rose 57% from a year earlier, more than double the 23.6% growth rate FactSet analysts had projected heading into the season. Revenue climbed about 15%, and 86% of reporting companies beat earnings estimates. Read Also: GameStop Warns Its Own Noteholders Might Short GME Stock Strength Across Every Corner of the Market All 11 S&P 500 sectors posted year-over-year earnings growth, and 10 grew at double-digit rates or...
Investors spent much of the second quarter bracing for an energy shock and fretting over an AI bubble. Corporate earnings have delivered the opposite story so far, with a profit surge running roughly twice as strong as Wall Street expected. PLTR stock is climbing. See the chart and price action here.
Oppenheimer reports that 306 S&P 500 companies, or 61% of the index, had posted results through July 31, according to Oppenheimer’s market strategy note. 6% growth rate FactSet analysts had projected heading into the season. Revenue climbed about 15%, and 86% of reporting companies beat earnings estimates. Read Also: GameStop Warns Its Own Noteholders Might Short GME Stock Strength Across Every Corner of the Market All 11 S&P 500 sectors posted year-over-year earnings growth, and 10 grew at double-digit rates or faster.
Energy, consumer discretionary, and communication services each more than doubled their earnings, a pace few strategists anticipated when the reporting season opened. Alphabet Inc. (NASDAQ: GOOGL ) (NASDAQ: GOOG ) delivered one of the season’s biggest headline beats. 9 billion analysts had modeled.
Google Cloud revenue jumped 82%, underscoring continued demand for the company’s AI infrastructure. A large portion of the EPS figure reflected a roughly $99 billion unrealized gain on equity holdings, so the underlying operating profit beat was narrower than the headline number suggests — still a beat, just not quite as dramatic as it first appears. Palantir Technologies Inc. (NASDAQ: PLTR ) became the latest name to catch the market off guard.
81 billion consensus. S. commercial revenue surging 149%. S.
commercial revenue, citing accelerating demand for sovereign AI deployments. Combined, these results suggest corporate America is absorbing higher energy costs and AI capital-spending fears far better than markets priced in just weeks ago. 35 at the time of publication Tuesday, according to data Pro. Read Also: Snap Stock Pops After Q2 Earnings — Here's Why Photo: Shutterstock