Introduction
The Q2 2025 earnings preview kicks off in earnest this week, as more than 1,400 companies prepare to report financial results. Among them are heavyweights from the “Magnificent Seven” such as Alphabet (GOOGL) and Tesla (TSLA), as well as major players across key sectors including SAP (SAP), Coca-Cola (KO), IBM (IBM), Intel (INTC), and ServiceNow (NOW).
This earnings season 2025 is unfolding amid persistent inflationary pressures, geopolitical risks, and mixed signals from central banks. With volatility picking up in the equity markets, investors are turning to earnings guidance for clarity on growth trajectories in the second half of the year. In this Q2 2025 earnings season preview, we break down the most closely watched reports and provide insights into what could drive the market next.
Key Earnings Releases: What to Expect
1. Tesla (TSLA) – Expected to Miss Estimates
Report Date: Wednesday, July 23, 2025 (After Market Close)
Consensus EPS: $0.28
Revenue Estimate: $22.61B (Down 11.3% YoY)
Tesla is under pressure as deliveries falter and profit margins continue to tighten amid heightened competition from Chinese EV makers. Analysts anticipate another sequential drop in revenue, reflecting weaker demand and price cuts.
Focus Areas:
- Margins & Pricing Power: Can Tesla stabilize ASPs without sacrificing volume?
- Autonomous Driving & FSD: Progress updates on Tesla’s AI and Full Self-Driving programs.
- Energy Segment Expansion: Could energy storage revenue offset automotive slowdowns?
Market Mood:
Short interest rose 4.7%, while options imply a 7.8% post-earnings move.
2. Alphabet (GOOGL) – Expected to Beat
Report Date: Wednesday, July 23, 2025 (After Market Close)
EPS Estimate: $2.14
Revenue Estimate: $87.94B
Alphabet appears poised to beat on the back of strong ad revenue and growing traction in AI-powered cloud services. Google Cloud’s enterprise AI tools—especially Gemini and Vertex AI—are seen as competitive differentiators.
Focus Areas:
- Ad Revenue Trends: YouTube, Search, and Network ads.
- Google Cloud Margins: Are we seeing sustainable profitability?
- AI Monetization: Gemini AI’s integration into enterprise workflows.
Despite some hedge fund short positioning, 72% of institutional traders expect Alphabet to exceed expectations.
3. Verizon (VZ) – Expected to Beat
Report Date: Monday, July 21, 2025 (Pre-Market)
EPS Estimate: $1.18
Revenue Estimate: $33.54B (Up 2.3% YoY)
Verizon offers insight into consumer strength via wireless services. Recent promotions suggest improved postpaid subscriber trends.
Investor Focus:
- Postpaid Growth: Impact of 5G and bundled service offerings.
- Cash Flow: Is Verizon on track to meet deleveraging targets?
Market sentiment is modestly bullish, with 64.4% expecting an earnings beat.
4. Intel (INTC) – Expected to Beat
Report Date: Thursday, July 24, 2025 (After Market Close)
EPS Estimate: $0.01
Revenue Estimate: $11.87B (Down 7.5% YoY)
Intel continues to push its foundry services and AI accelerator chips, aiming to reclaim market share from Nvidia and AMD.
What to Watch:
- AI Data Center Demand: Can Intel gain traction?
- Manufacturing Updates: Progress on Arizona and Ohio fabs.
Investor sentiment remains cautiously optimistic—73% anticipate a beat despite lagging YoY comps.
5. SAP (SAP) – Strong Growth Expected
Report Date: Tuesday, July 22, 2025 (After Market Close)
EPS Estimate: $1.63
Revenue Estimate: $10.39B (Up 16.5% YoY)
SAP continues to benefit from its successful transition to cloud-based subscription models, with particularly strong performance in Europe and Asia.
Key Areas:
- Cloud Growth: Competing effectively with Oracle and Microsoft.
- Cost Control: Improving efficiency during cloud migration.
Short interest fell sharply (-62.3%), signaling growing confidence.
Sector-Level Trends to Watch This Quarter
- Technology: AI is no longer just a buzzword—it’s materially driving margins and new revenue channels, especially for Alphabet, Microsoft, and ServiceNow.
- Consumer Staples: Companies like Coca-Cola may show margin stability, but slower global demand and FX headwinds remain risks.
- Telecom: Verizon and AT&T could benefit from infrastructure stimulus and remote work tailwinds.
These themes will influence key stocks to watch in 2025 beyond just this quarter’s numbers.
Bonus Stock to Watch: Microsoft (MSFT)
Report Date: July 23, 2025 (AMC)
Consensus EPS: $2.89
Revenue: $65.78B
Microsoft is quietly becoming the AI backbone of enterprise IT. Between Azure, GitHub Copilot, and OpenAI integrations, the company is expected to post robust growth.
- Focus Keyword Opportunity: Azure AI and GitHub Copilot
- Cloud Growth Rate: Analysts expect a 22% YoY increase in Azure revenues.
With 88% of analysts rating MSFT a “Buy,” this is a Q2 2025 earnings preview stock not to overlook.
Macro Themes Impacting Earnings
1. ECB Rate Decision (July 24)
The European Central Bank is expected to hold rates, but any dovish tone could buoy Eurozone equities.
2. Flash PMI Reports
Purchasing Managers’ Index (PMI) data from the U.S., Eurozone, and UK will shed light on economic momentum heading into Q3.
3. Japanese Elections (July 20)
A potential shift in fiscal policy could drive moves in Asian equity markets and currencies.
Investor Strategy Tips
- Focus on Forward Guidance: Surprises in future earnings expectations often move stocks more than current results.
- Watch Cloud and AI Metrics: These are the new growth levers for tech.
- Avoid Knee-Jerk Reactions: Post-earnings volatility is common—let the dust settle before acting.
Final Thoughts: Navigate Q2 2025 with Data and Discipline
This earnings season 2025 offers a mixed bag—some firms are poised to shine, while others face structural headwinds. With market volatility likely to continue, earnings guidance will serve as the compass for the rest of the year. From Alphabet’s AI prowess to Tesla’s margin compression, smart investors will separate signal from noise.
Which earnings report are you most anticipating?
