Apple will report its September-quarter results late Thursday. Analysts forecast earnings of $1.60 per share, a 10% year-over-year increase, with sales rising 5% to $94.4 billion. This report includes initial sales figures for the new iPhone 16, Apple Watch Series 10, and AirPods 4.
Ahead of the earnings release, Apple plans to introduce a software update for its latest iPhones, incorporating new AI features that have received mixed early reviews. Microsoft is set to release its fiscal Q1 results late Wednesday. Analysts expect earnings of $3.10 per share, a 4% increase, on sales of $64.6 billion, up 14%.
Key focus areas include the Azure cloud computing business and monetization of generative AI investments. Capital spending plans for data centers will also be scrutinized. Google’s parent company Alphabet will publish its Q3 earnings on Tuesday, marking the first earnings call for new CFO Anat Ashkenazi.
Analysts project EPS of $1.84, up 19%, with revenue rising 13% to $86.4 billion.
Apple, Microsoft, and Alphabet earnings
Cloud computing revenue is expected to grow 29% to $10.87 billion.
Investors will be keen to hear Ashkenazi’s thoughts on cost controls and stock buybacks. Meta’s significant investments in AI have boosted its stock by nearly 62% this year. Analysts will focus on the profitability timeline for these AI investments.
Amazon’s shares have increased by 18.3% this year. The company’s earnings report will provide insights into consumer sentiment and its strategies involving new AI technologies. Nearly 1,000 U.S. companies, including giants like Berkshire Hathaway, Eli Lilly, Exxon Mobil, and Chevron, are also scheduled to report their earnings this week.
This week’s economic snapshots include the Personal Consumption Expenditures Price Index on Thursday, the Labor Department’s weekly jobs report on Thursday, and the October jobs report on Friday. Market analysts are focused on these reports to gauge inflation and employment trends. The upcoming election on November 5, featuring Democrat Kamala Harris and Republican Donald Trump, may also impact market performance.
The Federal Reserve meeting starting on November 6 will be closely monitored for potential rate cut decisions, influencing the markets further.
