The fourth quarter earnings season kicked into high gear this week, with Big Tech results from Microsoft (MSFT), Meta (META), Tesla (TSLA), and Apple (AAPL) headlining the earnings calendar.
An optimistic consensus is forming: As of Jan. 23, 13% of S&P 500 (^GSPC) companies have reported fourth quarter results, according to FactSet data, and Wall Street analysts estimate an 8.2% increase in earnings per share for the fourth quarter. If that rate holds, it would represent the 10th consecutive quarter of annual earnings growth for the index.
Heading into the reporting period, analysts were expecting an 8.3% jump in earnings per share, down from the third quarter’s 13.6% earnings growth rate. Wall Street has raised its earnings expectations in recent months, especially for tech companies, which have driven earnings growth in recent quarters.
Prediction Market powered by
Although Big Tech continues to set the tone, this earnings season promises to test the improved stock market breadth that has emerged at the start of 2026. Plus, the themes that drove the markets in 2025 — artificial intelligence, the Trump administration’s tariff and economic policies, and a K-shaped consumer economy — will continue to provide plenty for investors to parse.
In addition to the reports from four of the “Magnificent Seven” tech stocks, Wall Street will receive updates from a wide swath of companies across the economy, including UnitedHealth (UNH), Boeing (BA), General Motors (GM), IBM (IBM), Starbucks (SBUX), Levi Strauss (LEVI), Visa (V), American Express (AXP), Mastercard (MA), Caterpillar (CAT), Exxon Mobil (XOM), Chevron (CVX), AT&T (T), and Verizon (VZ),
LIVE79 updates
Mark Zuckerberg on Meta’s earnings call: ‘We are now seeing a major AI acceleration’
“We are now seeing a major AI acceleration,” Mark Zuckerberg stated on Meta’s (META) earnings call.
That theme was consistent throughout Meta’s earnings call, as the CEO touted new AI models and products that the company is working on.
Zuckerberg said that since the beginning of 2025, Meta has seen a 30% increase in productivity from its engineers due to the adoption of AI coding tools. The power users of those tools have seen their output increase by 80%, Zuckerberg said.
“We’re starting to see agents really work,” he added. “This will unlock the ability to build completely new products and transform how we work.”
Tesla suggests cities where robotaxis may be tested next
As Yahoo Finance’s Pras Subramanian noted, Tesla (TSLA) said in its earnings report that it removed the safety driver on a limited basis for its Austin robotaxi service.
As for which metro areas may be next for robotaxi testing, Tesla suggested it would target Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of 2026.
Robotaxi target cities. (Tesla presentation)
ServiceNow stock declines after company announces expanded partnership with Anthropic
ServiceNow (NOW) followed up its partnership with OpenAI, inked last week, with an expanded agreement with Anthropic on Wednesday.
The cloud software company said it will deploy Anthropic’s Claude model to more than 29,000 employees with the ServiceNow AI Platform. The stock declined by 5% after the agreement and company earnings were released.
“This partnership is about reimagining how work gets done,” said Bill McDermott, CEO of ServiceNow. “It puts the power to build, deploy, and scale mission-critical applications into the hands of every person, in every industry, at every level. Together, we are proving that deeply integrated platforms with an open ecosystem are how the future is built.”
In the fourth quarter, ServiceNow reported adjusted profit of $0.92 per share, above estimates of $0.88. Revenue rose more than 20% year over year to $3.57, also beating estimates of $3.53 billion.
For 2026, ServiceNow expects subscription revenue to be between $15.53 billion and $15.57 billion. Wall Street forecast full-year subscription revenue of $15.21 billion, according to data compiled by LSEG.
IBM stock surges as software revenue growth accelerates
International Business Machines (IBM) stock surged 8% in extended trading after growth in the company’s software business drove 12% revenue growth for the fourth quarter.
Revenue increased to $19.69 billion, beating forecasts of $19.21 billion, according to Bloomberg consensus estimates. Software revenue was up 14% in the quarter, Consulting revenue increased 3%, while Infrastructure revenue rose 21%.
IBM has focused on its Hybrid Cloud and Red Hat software platforms, which have been primary drivers of the stock’s 30% gain over the past year.
Earnings per share came in at $4.52, compared to estimates of $4.32.
Whirlpool (WHR) posted fourth quarter results that missed expectations as it navigated a volatile macro backdrop with tariffs, a higher promotional environment, and cautious consumers.
The appliance maker, behind other brands like Maytag and KitchenAid, reported revenue of $4.1 billion, less than estimates of $4.3 billion. Adjusted earnings came lower than expected at $1.91, while the Street forecasted $2.18, per Bloomberg consensus data.
Whirlpool chairman and CEO Marc Bitzer characterized 2025 as one filled with a “lot of challenges and headwinds” on a call with Yahoo Finance. He said the fourth quarter was an even tougher landscape.
“It was a pretty heavy [promotional] environment in Q4, which is probably the result of … still a lot of pre-tariff loaded inventory market,” Bitzer said, adding that new products and transition costs also weighed on the quarter.
Revenue for major appliances in its North America business fell 0.9% year-over-year to $2.57 billion. Whirlpool’s small domestic appliance business grew 10.3% to $423 million, less than the $466 million Wall Street expected.
So far in 2026, Bitzer said the company is seeing a “normalized environment.”
Whirlpool expects net sales to come in the range of $15.3 billion to $15.6 billion. Wall Street expected $15.5 billion. Adjusted earnings are expected to come in at roughly $6.25 for the year, a bit lower than the $7.23 projection the Street had. Free cash flow is far higher than expected, though, in the range of $400 million to $500 million, compared to expectations for $349 million.
Earnings for Chili’s owner Brinker International tops market forecasts
Brinker International (EAT) stock rose 5% ahead of the opening bell on Wednesday after the Chili’s restaurant owner reported earnings and a financial outlook that topped analysts’ expectations.
GE Vernova raises guidance, but EBITDA misses estimates
GE Vernova (GEV) reported a solid quarter and guidance raise, but the stock slid around 2% in premarket trading.
The company, which spun off from GE in 2024, makes gas turbines and other equipment for electricity generation that has boomed as a result of the artificial intelligence build-out.
GE Vernova’s adjusted EBITDA of $1.15 billion, below analyst estimates of $1.2 billion, according to S&P Global Market Intelligence, may be letting investors down.
Revenue of $10.9 billion beat estimates of $10.2 billion. And GE Vernova reported total backlog growth of $31.2 billion for the year.
For 2026, GE Vernova raised its revenue guidance to a range of $44 billion to $45 billion, up from $41 billion to $42 billion. The company also expects increased cash flow of $5 billion to $5.5 billion, up from $4.5 billion to $5 billion.
The company sees 16%-18% organic revenue growth in its power segment for the year.
“We delivered strong financial performance in 2025 with continued momentum in Power and Electrification while focusing on what we can control in Wind,” GE Vernova CEO Scott Strazik said. “We increased our backlog to $150 billion, with better equipment margins, and are entering 2026 with significant momentum.”
Starbucks posts first quarter of US sales growth in 2 years as turnaround continues
ASML’s record orders smash estimates as AI spurs demand
ASML (ASML) stock jumped 6% during premarket hours on Wednesday after reporting fourth quarter orders that beat analysts’ expectations. ASML said the development of its AI infrastructure had helped boost demand for its chip-making machines.
Texas Instruments (TXN) stock popped more than 9% in extended trading as the semiconductor company’s guidance impressed investors and overshadowed a miss on earnings.
Earnings per share declined year over year to $1.27 on revenue of $4.42 billion. Wall Street analysts forecast earnings per share of $1.31 on revenue of $4.44 billion, according to S&P Global Market Intelligence.
Revenue decreased 7% from the third quarter but increased 10% from the fourth quarter a year ago.
However, the Street was encouraged by Texas Instruments’ first quarter financial outlook. The chipmaker said it expects revenue in the range of $4.32 billion to $4.68 billion and earnings per share between $1.22 and $1.48, well above the average Street estimate for $4.4 billion in revenue and $1.28 earnings per share in Q1.
Logitech earnings beat estimates, driven by ‘broad-based growth’
Swiss computer hardware maker Logitech (LOGI) reported better-than-expected third quarter earnings on Tuesday as strategic AI upgrades to its products helped drive sales growth. But the stock edged lower after hours.
In the company’s fiscal third quarter, profits rose 28% year over year to $1.69, beating Wall Street analyst estimates for $1.66 per share, according to S&P Global Market Intelligence. Sales increased 6% year over year to $1.42 billion, ahead of expectations for $1.4 billion in sales.
“Growth was broad-based across categories, regions and both consumer and business channels,” Logitech CEO Hanneke Faber said in the release. “With the exception of pandemic peaks, we drove record operating income despite tariff headwinds, underscoring the quality of our portfolio, the strength of our innovation and our unique global operational capabilities.”
For the fiscal fourth quarter, Logitech expects sales in the range of $1.07 billion to $1.09 billion, representing sales growth of 6% to 8%, which was in line with analysts’ estimates.
For the full year, Logitech expects sales in the range of $4.82 billion-$4.84 billion.
Sysco expects heftier tax refunds to help boost restaurant traffic
Customers aren’t visiting restaurants as much, according to food distributor Sysco (SYY), but the industry is optimistic that foot traffic could improve this year.
On the company’s earnings call, Sysco CEO Kevin Hourican alluded to higher tax refund checks and customers becoming more accustomed to tariffs as factors that could help lift restaurant traffic. On the restaurant side, he noted that businesses have started adjusting to consumers’ preference for value, which could also bring in more diners.
“I believe that restaurant operators, particularly independent restaurant operators, have leaned into the consumer need for value,” he said. “They’ve been more nimble. They’ve adjusted menu prices. They’ve looked at things like portion sizes. They’ve looked at alternative proteins that can save the customer money, and independents in the industry are doing better than national chains.”
Sysco, which provides food, kitchen, and dining supplies to restaurants, reported higher sales in the second quarter and saw gains in US local foodservice volumes, though national chain restaurants were still suppressed.
“The declining foot traffic to restaurants, per Black Box, has negatively impacted our national chain restaurant customers as can be seen in our results as volume with these customers was down year-over-year,” Hourican said, noting that the company expects to offset that weakness with strength in its non-restaurant business.
For the second quarter, sales increased 3% year over year to $20.8 billion, while diluted earnings per share of $0.81 were 1.2% lower than the second quarter of 2025.
Sysco also raised its full-year adjusted earnings per share to be at the high end of its guidance range of $4.50-$4.60.
