Earnings

Key morning headlines: Tesla’s earnings disappointed, prioritizing robotaxis and AI, triggering a share drop. Southwest Airlines and American Airlines reported strong earnings, contrasting Tesla’s struggles. The US imposed sanctions on Russian oil giants, causing prices to surge. Meta is cutting AI jobs amid superintelligence concerns. Starbucks workers are preparing for a strike vote over pay and working conditions, potentially impacting upcoming earnings.

Tesla’s Q3 earnings revealed a 12% revenue increase but a 37% net income drop due to price cuts to compete with Chinese EV makers and a surge in operating expenses driven by AI and R&D investments. This mixed performance and broader market concerns led to a dip in Tesla’s stock price. The market awaits upcoming earnings reports from tech giants to gauge overall market health. A recent crypto downturn disproportionately impacted smaller coins, highlighting the volatility of altcoins.

Tesla’s Q3 revenue beat expectations with a 12% increase, but earnings fell short, leading to a stock dip. Profitability declined due to price cuts and increased operating expenses driven by AI investments. The expiration of EV tax credits and slumping European sales, influenced by Musk’s public persona and competition, added complexity. Tesla is focusing on long-term projects like Cybercab, Optimus robots, and Robotaxi expansion, but offered limited guidance, concerning investors about their Full Self-Driving system. Energy generation and storage saw significant growth, fueled partly by Musk’s AI venture, xAI.

IBM reported a strong Q3, exceeding expectations with adjusted EPS of $2.65 and revenue of $16.33 billion. Revenue grew 9% year-over-year, driven by AI traction, with AI-related bookings surpassing $9.5 billion. IBM raised its full-year revenue growth forecast to “more than” 5% and free cash flow to $14 billion. Software and Consulting revenues also performed well, with Infrastructure experiencing a significant increase. Despite the positive results, shares dipped in after-hours trading.

Micron reported strong earnings, exceeding expectations with $3.03 EPS and $11.32 billion revenue. Fueled by surging demand for memory and storage, particularly High-Bandwidth Memory (HBM) for AI, Micron forecasts $12.5 billion revenue for the next quarter. Net income jumped to $3.2 billion. The company’s stock has nearly doubled YTD. Cloud sales tripled, while core data center sales declined 22%. CEO Mehrotra highlighted Micron’s position to capitalize on the AI opportunity and domestic manufacturing focus.

Adobe reported strong fiscal third-quarter results, beating analysts’ expectations with adjusted EPS of $5.31 and revenue of $5.99 billion. The company’s growth is fueled by its digital media segment and strategic AI integration, with AI-influenced ARR exceeding $5 billion. Adobe anticipates continued growth, forecasting adjusted EPS between $5.35 and $5.40 for the fourth quarter and projecting an 11.3% annualized revenue increase in its digital media business for the fiscal year. Despite this, Adobe’s year-to-date stock performance lags behind the Nasdaq.

RH (NYSE: RH) will release its second-quarter fiscal 2025 earnings on September 11, 2025, after market close. A letter from Chairman and CEO Gary Friedman and the full financial results will be available on the investor relations website at ir.rh.com. A live conference call and webcast will be held at 2:00 pm Pacific Time, offering further insights. Analysts will focus on supply chain, pricing, product performance, and expansion efforts. RH operates as a curator of design in the luxury lifestyle market.

Salesforce ($CRM) shares declined after-hours despite exceeding Q2 earnings and revenue expectations due to a weaker outlook. While Q2 revenue rose 10% to $10.24 billion and net income increased, forward guidance fell slightly short of estimates. Investors are concerned about slowing revenue growth and the efficacy of Salesforce’s AI investments, especially compared to gains made by other tech companies in the AI sector. The company aims to address these concerns through its Agentforce AI software and the acquisition of Informatica. The market is demanding concrete evidence of accelerated growth and profitable AI integration.

Alibaba (BABA) reported a mixed Q1 fiscal year performance. Net income beat expectations with a 78% jump, driven by equity gains and the Trendyol sale. Revenue, however, fell short of estimates. Cloud computing revenue soared 26%, fueled by AI demand, with AI-related product revenue growing at a triple-digit rate for the eighth consecutive quarter. Despite macroeconomic headwinds in China, Alibaba’s stock showed resilience. Investors are optimistic about AI initiatives and investments.

Kornit Digital (KRNT) reported mixed Q2 2025 results. Revenue reached $49.8 million, meeting guidance, with a GAAP net loss of $7.5 million and a non-GAAP profit of $1.2 million. Annual recurring revenue from AIC contracts hit $18.9 million. Q3 2025 revenue is projected between $49-55 million with an adjusted EBITDA margin of -3% to 3%. The company focuses on expanding Apollo and AIC adoption and maintaining profitability despite market headwinds.