Earnings season heats up this week with two megacap stocks scheduled to release their latest financial results. Google’s parent company Alphabet and Tesla are among the 77 S&P 500 companies scheduled to release their second-quarter reports. Investors will also be keeping an eye on IBM’s quarterly results. This comes as the legacy technology giant released preliminary results and its stock price plummeted. The report comes after a tough week for Wall Street, with major stock indexes falling due to a decline in semiconductors and rising tensions between Iran and the United States. So far, the season is off to a strong start. Of the roughly 50 S&P 500 companies that have reported, 88% beat analysts’ earnings estimates, according to FactSet. Always Eastern Time. On Tuesday, General Motors is scheduled to report earnings before the bell, with a conference call scheduled for 8:30 a.m. Last quarter: GM raises its 2026 outlook and beats first-quarter profit expectations. This quarter: The automaker’s revenue is expected to rise more than 25%, according to LSEG. What to watch: “While recent macro volatility has raised concerns about the health of the auto market, our channel checks have so far shown no change in consumer behavior or significant decline in unit sales. This continues to be the case in the second quarter,” said Deutsche Bank analyst Edison Yu. He rates the stock as a “buy.” History shows us: GM stock has rallied after the past three earnings reports, including a 15% jump after the third-quarter beat. On Wednesday, CME Group is scheduled to report earnings in the premarket, followed by a conference call at 8:30 a.m. Last Quarter: CME’s earnings and revenue were slightly above expectations for the first quarter. This quarter: Exchange operator revenue is expected to decline slightly, according to LSEG. What to watch: CME Group stock has fallen more than 14% in the past three months amid concerns about the emergence of perpetual futures contracts and their impact on exchange operators’ revenues and business models. However, Morgan Stanley analyst Michael Cypris remains bullish on the stock, repeating his overweight rating from last week. “CME believes we are best positioned during a period of continued macro uncertainty and emerging credit concerns, with 82% of our revenue coming from clearing and trading fees and a strong moat around complex futures and options,” he said in a letter to clients. History shows us: CME Group has exceeded analyst profit estimates in 21 of the past 22 quarters, according to Bespoke data. IBM is scheduled to release earnings after the closing bell. Management will hold a conference call at 5 p.m. Last quarter: IBM kept guidance unchanged, sending stock price lower. Current quarter: Analysts surveyed by LSEG expect the technology company to post earnings growth of more than 5%. What to watch: IBM suffered its worst session on record last week, dropping 25% after disappointing preliminary results, and is limping along to release its second-quarter report. Oppenheimer analyst Param Singh said: “Despite some bright spots (RedHat, HashiCorp, Confluent, Server/Storage), we don’t think IBM will be able to meet its full-year targets or achieve ‘double-digit’ growth in CC software in CY26/27.” He also downgraded the stock from last week’s outperformance. History shows us this: IBM’s stock price has fallen in four of the company’s last five quarterly releases. Indeed, Bespoke says its returns exceed expectations 85% of the time. Tesla is scheduled to report earnings after the close, with a conference call with analysts and management scheduled for 5:30 p.m.Last quarter: TSLA beat earnings thanks to higher auto margins. This quarter: According to LSEG, the EV maker’s profit is expected to increase 25% year over year. What to watch: “The strength of second-quarter sales in China and Europe appears to confirm both the unique value proposition of Tesla vehicles and the risk of vehicle commoditization over time. Production shortfalls should help cash flow in the second quarter, but low potential CyberCab production suggests further delays in robotaxi launches,” Jefferies analyst Philippe Fouchois wrote. He has a hold rating on the stock. History shows us this: Tesla stock has fallen after three of the company’s last four earnings releases, including an 8.2% drop on mixed second-quarter 2025 results. Alphabet is scheduled to report earnings after the bell, followed by a call at 4:30 p.m. Last quarter: GOOGL raises its full-year capital spending outlook to $190 billion. This quarter: The tech giant is expected to report more than 20% revenue and revenue growth, according to LSEG. What to watch: BMO last week raised its price target on Alphabet to $455 from $435, suggesting a 31% upside from Friday’s closing price. “We believe investors have finally come to expect that GOOGL’s Gemini model will remain highly competitive with releases from OpenAI/Anthropic, and as a result, GOOGL will be able to deliver next-generation models with the same level of intelligence as Anthropic/OpenAI. “We expect investors to be concerned that the company’s performance will continue to grow,” wrote analyst Brian Pitts. “Nonetheless, we still think it’s early days and believe GOOGL has all the talent, tools, and capital it needs to remain competitive in the fundamental model race.” History shows us: Alphabet’s earnings have exceeded expectations for 13 consecutive quarters. On average, the company’s stock price rises 1.3% on the day it releases earnings, according to Bespoke data. On Thursday, Intel is scheduled to report its financial results after the close of trading. A conference call with management is also scheduled for 5 p.m. Last quarter: INTC soars after the chipmaker’s first-quarter report showed signs of growth. Current quarter: The chipmaker is expected to post year-over-year revenue growth of more than 12%, according to LSEG. What to watch: Susquehanna’s Christopher Rolland said last week that Intel’s outlook for the second half of the year is more uncertain, but he expects the company to perform well in the second quarter. “We expect PC manufacturing volumes to be significantly lower than seasonal due to deteriorating memory trends,” he said in a note to customers. Roland’s stock rating is neutral. History shows us: According to Bespoke, Intel beats earnings estimates 77% of the time. However, stock prices on the closing day decline by an average of 1.3%.
