A Special Report on Corporate Performance

Executive Summary

The earnings season for the second quarter of calendar year 2025 has concluded, revealing a stark bifurcation in the global economy. While the generative AI infrastructure build-out continues to fuel hyper-growth in the technology sector, the broader consumer landscape is characterized by increasing selectivity and value-seeking behavior. We have compiled a comprehensive analysis of the earnings reports from the world’s leading corporations to provide a clear picture of the current economic trajectory.

Note to Readers: This report focuses on the financial results of major global capitalization companies based on data available through mid-2025. For a more granular analysis of sector-specific valuation models and forward-looking risk adjustments, we have a proprietary research paper available that will complement this reading.

The Technology Sector: The AI CapEx Supercycle

The defining narrative of the first half of 2025 remains the aggressive capital expenditure cycle related to artificial intelligence. The "Hyperscalers"—Microsoft, Amazon (AWS), and Alphabet (Google Cloud)—along with enablers like NVIDIA and TSMC, have decoupled from the broader market in terms of growth velocity.

NVIDIA continues to operate in a league of its own. For the second quarter of fiscal 2026 (calendar mid-2025), the company reported revenue of $46.7 billion, up 56% year-over-year, with Data Center revenue alone contributing $41.1 billion. The demand for the Blackwell platform is outstripping supply, with Data Center revenue growing 17% sequentially. Management noted that the $50 billion China market remains effectively closed due to export controls, resulting in a substantial inventory write-off, yet global demand remains insatiable.

This demand is flowing directly to the cloud providers. Microsoft reported a 19% increase in constant currency revenue for its fiscal fourth quarter, reaching $76.4 billion. Intelligent Cloud revenue stood at $29.9 billion. Alphabet similarly reported strong momentum, with Google Cloud revenue surging 32% to $13.6 billion. Amazon’s AWS segment accelerated to 17.5% growth year-over-year, reaching $30.9 billion in sales.

The semiconductor supply chain is the primary beneficiary of this trend. TSMC reported net revenue of NT$673.5 billion in Q2, with High Performance Computing (HPC) now accounting for more than half of its revenue mix. ASML, providing the lithography equipment essential for these chips, reported Q2 net sales of €7.7 billion with a gross margin of 53.7%, driven by higher average selling prices for EUV systems.

Oracle is aggressively positioning itself in this space, reporting its strongest booking quarter ever with a Remaining Performance Obligation (RPO) balance of $138 billion. Chairman Larry Ellison emphasized that Oracle is building a 64,000 GPU cluster for AI training, signaling that the infrastructure race is far from over.

The Consumer: Bifurcation and the Search for Value

Outside of technology, the narrative shifts to a constrained consumer. The second quarter of 2025 exposed a widening gap between essential goods, value-oriented retail, and discretionary spending.

Walmart emerged as a clear winner in this environment, raising its full-year guidance. The retail giant reported revenue growth of 4.8% to $177.4 billion, with eCommerce sales up 25% globally. CFO John David Rainey noted that the company’s value proposition is resonating more than ever, with sales momentum continuing across the business. Conversely, Target (implied via peer comparison) and other discretionary retailers face headwinds.

McDonald’s faced a challenging quarter, with global comparable sales decreasing 1.0% in Q1 2025. Executives noted that lower-income consumers are pulling back, with visits from this demographic down double-digits. The company is pivoting to a strong value platform to arrest this decline. Similarly, Starbucks (implied via sector trends) and other quick-service restaurants are navigating a "choppy" operating landscape.

In the Consumer Packaged Goods (CPG) space, Procter & Gamble reported a 2% decline in net sales for its fiscal third quarter, though organic sales rose 1% driven entirely by price. Volume growth remains elusive for many staples companies as consumers adjust to cumulative inflation. Nestlé reported broad-based organic growth of 2.1% but noted a consumer environment characterized by "heightened macroeconomic uncertainty".

Luxury and Discretionary: The Normalization

The luxury sector, which proved resilient through 2023 and 2024, is seeing a normalization of demand, particularly in China. LVMH reported revenue of €20.3 billion in the first quarter, noting a "disrupted geopolitical and economic environment". While Europe and the US showed resilience, the Asian market outside of Japan saw muted trends. Hermès, however, continued to outperform, delivering 17% growth at constant exchange rates in Q1, demonstrating the unique pricing power of the absolute top-tier luxury segment.

Healthcare: The Obesity Duopoly

The pharmaceutical sector is currently dominated by the metabolic revolution. Novo Nordisk and Eli Lilly are engaged in a race to supply the world’s appetite for GLP-1 weight-loss drugs.

Eli Lilly reported a massive 38% revenue increase in Q2 2025 to $15.6 billion, driven by Mounjaro and Zepbound. Mounjaro revenue alone reached $5.2 billion for the quarter. Similarly, Novo Nordisk saw sales increase by 19% in Danish kroner in the first quarter of 2025, with Obesity care growing by 67%. However, Novo Nordisk lowered its full-year sales outlook slightly due to lower-than-planned penetration of branded GLP-1s in the U.S., citing pressure from compounded (generic/pharmacy-mixed) alternatives. Both companies are investing tens of billions into manufacturing capacity to alleviate supply constraints.

Johnson & Johnson reported solid Q2 sales growth of 5.8% to $23.7 billion. The company is pivoting toward higher-growth areas in MedTech, specifically cardiovascular intervention, following its acquisition of Shockwave.

Financial Services: Net Interest Income Pressure

The major U.S. banks reported solid results but highlighted the headwinds of stabilizing interest rates and deposit cost pressures. JPMorgan Chase reported net income of $15.0 billion in Q2 2025, down from the prior year. CEO Jamie Dimon warned of significant risks, including tariffs, trade uncertainty, and fiscal deficits. Net Interest Income (NII) excluding markets was down 1%, reflecting deposit margin compression.

Bank of America reported net income of $7.1 billion, with NII up 7% year-over-year, showing resilience in its deposit franchise. However, the banks are preparing for potential credit deterioration in specific pockets, such as commercial real estate and credit cards, though consumer health remains generally stable.

In the payments space, Visa and Mastercard continue to benefit from the secular shift to digital payments and resilient travel spending. Visa reported net revenue of $10.2 billion, up 14%, citing strong cross-border volume. Mastercard similarly saw net revenue increase by 17%.

Energy: Volume vs. Price

The energy supermajors, ExxonMobil and Chevron, faced year-over-year earnings declines due to lower refining margins and natural gas prices compared to the highs of previous years. ExxonMobil reported earnings of $7.1 billion, down from $7.7 billion in the first quarter, despite achieving record production in the Permian Basin. Chevron reported earnings of $2.5 billion, down from $4.4 billion in the prior year, impacted by lower margins and fair value adjustments on Hess shares. Both companies are focused on high-grading their portfolios and returning cash to shareholders through aggressive buybacks.

Industrial and Logistics

GE Aerospace continues to see robust demand for commercial engines and services, raising its 2025 guidance. The company reported revenue of $11.0 billion in the second quarter, up 21%. Tesla, facing a transition period between major product waves, reported a 42% decrease in operating income to $0.9 billion in Q2 2025, with revenue impacted by a decline in vehicle deliveries. However, the company highlighted progress in its AI and robotics initiatives.

Table: Q2 2025 Financial Performance of Top Global Corporations

The following table summarizes the financial results for the most recent reported quarter (generally Calendar Q2 2025 or Fiscal Quarters ending in mid-2025) for a selection of the top corporations analyzed in this report.

Corporation	Ticker	Revenue (Billions)	Revenue Growth (YoY)	Net Income / Earnings (Billions)	Diluted EPS
Technology
Amazon	AMZN	$167.7	+13%	$18.2	$1.68
Alphabet (Google)	GOOGL	$96.4	+14%	$28.2	$2.31
Apple*	AAPL	$94.0	+10%	$23.4	$1.57
Meta Platforms	META	$47.5	+22%	$18.3	$7.14
Microsoft	MSFT	$76.4	+18%	$27.2	$3.65
NVIDIA	NVDA	$46.7	+56%	$26.4	$1.08
Oracle**	ORCL	$15.9	+11%	$3.4	$1.19
SAP	SAP	€9.0	+9%	€1.7	€1.45
Salesforce***	CRM	$9.8	+8%	$1.5	$1.59
Tencent	0700.HK	RMB 184.5	+15%	RMB 56.0	RMB 5.99
Alibaba****	BABA	RMB 247.7	+2%	RMB 42.4	RMB 2.25
TSMC	TSM	NT$ 933.8	+38.6%	NT$ 398.3	NT$ 15.36
Financials
JPMorgan Chase	JPM	$44.9	(11)%	$15.0	$5.24
Bank of America	BAC	$26.5	+4%	$7.1	$0.89
Visa	V	$10.2	+14%	$5.3	$2.69
Mastercard	MA	$8.1	+17%	$3.7	$4.07
ICBC	1398.HK	RMB 204.7	(2.6)%	RMB 84.2	RMB 0.23
Bank of China	3988.HK	RMB 164.9	+2.4%	RMB 58.6	RMB 0.18
Berkshire Hathaway	BRK.A	$92.5	-1.2% (approx)	$12.5	$8,601
Healthcare
Johnson & Johnson	JNJ	$23.7	+5.8%	$5.5	$2.29
Eli Lilly	LLY	$15.6	+38%	$5.7	$6.29
UnitedHealth Group	UNH	$111.6	+13%	$3.4	$3.74
Novo Nordisk	NVO	DKK 76.9	+13%	DKK 26.5	DKK 5.96
AbbVie	ABBV	$15.4	+6.6%	$0.9	$0.52
Abbott Labs	ABT	$11.1	+7.4%	$1.8	$1.01
Roche (H1)	ROG	CHF 30.9	+4%	CHF 7.8	CHF 9.23
Consumer & Retail
Walmart	WMT	$177.4	+4.8%	$7.0	$0.88
Procter & Gamble^	PG	$20.9	+2%	$3.6	$1.51
Home Depot	HD	$45.3	+4.9%	$4.6	$4.58
McDonald's	MCD	$6.8	+5%	$2.3	$3.14
Coca-Cola	KO	$12.5	+1%	$3.8	$0.88
Netflix	NFLX	$11.1 (Est)	+15%	$3.1 (Est)	$7.03 (Est)
Philip Morris Int.	PM	$10.1	+7.1%	$3.0	$1.95
L'Oréal (H1)	OR	€22.5	+1.6%	€3.8	€7.07
Hermès (H1)	RMS	€8.0	+7%	€2.2	N/A
LVMH (H1)	MC	€39.8	-4%	€5.7	€11.42
Energy & Industrial
ExxonMobil	XOM	$83.1	+0.1%	$7.1	$1.64
Chevron	CVX	$44.8	-12%	$2.5	$1.45
GE Aerospace	GE	$11.0	+21%	$2.4	$1.87
Tesla	TSLA	$22.5	-12%	$1.2	$0.33
Toyota^^	7203	¥12,253	+3.5%	¥872	¥64.56
ASML	ASML	€7.7	N/A	€2.3	€5.90

Note: Data primarily represents the quarter ending June 30, 2025, or the nearest fiscal quarter reported in the provided source text. Apple Q3 Fiscal 2025 (Ended June 28, 2025). *Oracle Q4 Fiscal 2025 (Ended May 31, 2025). ***Salesforce Q1 Fiscal 2026 (Ended April 30, 2025). ****Alibaba Q1 Fiscal 2026 (Ended June 30, 2025). ^Procter & Gamble Q4 Fiscal 2025 (Ended June 30, 2025). ^^Toyota Q1 Fiscal 2026 (Ended June 30, 2025). (H1) Indicates data is for the Half-Year ended June 30, 2025.

Detailed Analysis by Sector

Technology and AI: The Spending Spree Continues

The technology sector remains the primary engine of earnings growth, decoupled from the broader macroeconomic malaise. The theme of Q2 2025 is the conversion of AI hype into tangible capital expenditure and, increasingly, revenue.

Alphabet is investing heavily, with CapEx reaching $13.2 billion in Q2, primarily for servers and data centers. Despite this, operating margins expanded to 32%, driven by search resilience and cloud efficiency.
Microsoft saw Intelligent Cloud revenue hit $29.9 billion. The company noted that near-term AI demand is exceeding available capacity, a signal that the infrastructure build-out has significant runway ahead.
Salesforce continues to emphasize margins alongside growth, reporting a non-GAAP operating margin of 32.3% and initiating its first dividend, signaling a maturation of the SaaS model into a cash-generation engine.
TSMC is the bellwether for this activity. Its 3-nanometer shipments now account for 24% of wafer revenue, proving that the demand for high-performance computing is translating into massive manufacturing volumes.

Consumer Goods: The Value Migration

The consumer sector is telling a story of divergence. Pricing power remains for essential goods, but volume growth is hard to find.

Walmart continues to defy the slowdown, using its scale to offer lower prices and attract higher-income households looking to trade down. Their strong guidance raise suggests they expect this trend to persist through the holiday season.
McDonald's faced a "shifting external landscape," with global comparable sales growth slowing to 3.8% (though international markets were harder hit in Q1). The focus has shifted entirely to "value menus" to win back the low-income consumer.
Coca-Cola managed to grow organic revenues by 5%, driven by price/mix, even as unit case volumes dipped 1%. This indicates strong brand equity but highlights the ceiling on consumer elasticity.

Healthcare: Innovation Driving Growth

The pharmaceutical sector is bifurcated between the metabolic leaders and the rest.

Eli Lilly and Novo Nordisk are effectively duopolies in the obesity market. Lilly’s Zepbound U.S. revenue exploded to $3.38 billion in the quarter. However, supply chain constraints remain the primary bottleneck for both companies.
UnitedHealth Group provides a view into medical utilization. The company noted higher-than-expected medical care activity, particularly in Medicare Advantage, driving its medical care ratio to 89.4%. This suggests that while consumers may be pulling back on retail spending, they are continuing to consume healthcare services at elevated rates.

Financials: A Fortress Balance Sheet Approach

Banks are navigating a high-for-longer interest rate environment.

JPMorgan Chase and Bank of America both highlighted strong capital positions (CET1 ratios of ~15% and ~12% respectively). While loan demand is tepid, investment banking fees are showing green shoots of recovery, up 7% at JPM.
Visa and Mastercard are insulated from credit risk and continue to benefit from transaction volume growth, particularly in cross-border travel which grew 16% for Visa.

Conclusion

The Q2 2025 earnings season illustrates a global economy in transition. The "old economy" sectors—retail, energy, and traditional manufacturing—are grappling with normalization after the post-pandemic boom, managing costs, and fighting for volume. In contrast, the "new economy"—driven by generative AI and advanced healthcare—is in the early stages of a massive investment cycle that is distorting traditional capex ratios and growth expectations.

Investors are currently rewarding companies that can demonstrate either exposure to the AI supercycle or extreme operational efficiency and value in a constrained consumer environment.

For a deeper dive into the valuation implications of these divergences and specific risk-adjusted forecasts for the second half of 2025, please refer to our complementary research paper available on our research portal.