Positive earnings beats dominate Q2 so far, but Trump’s tariffs begin to squeeze industrial giants like GM
As second-quarter earnings season hits its stride, results from corporate America are largely outpacing expectations — but not all sectors are escaping unscathed.
With 12% of S&P 500 companies having reported as of Friday, analysts now expect S&P 500 earnings to rise 5.6% year-over-year, slightly above the 5% growth forecast at the start of the season, according to FactSet. This modest growth reflects cautious optimism amid economic uncertainty, President Trump’s new tariffs, and lofty equity valuations.
This week will see earnings from 112 S&P 500 firms, including heavyweights such as Alphabet, Tesla, GM, and Coca-Cola — each offering a window into how corporate leaders are navigating rising costs, trade tensions, and shifting consumer trends.
Coca-Cola (KO) provided a bright spot Tuesday, beating Wall Street’s Q2 expectations as higher prices and solid demand — especially for Coca-Cola Zero Sugar, which saw 14% growth — helped lift profits. The beverage giant reported $12.62 billion in revenue, topping forecasts of $12.54 billion, while adjusted earnings came in at 87 cents per share versus expectations of 83 cents.
Interestingly, Coca-Cola also announced plans to roll out a new product this fall made with U.S. cane sugar, aligning with recent comments by President Trump, though the company had not previously confirmed the move.
General Motors (GM), however, faced a tougher quarter. The automaker reported a 32% drop in core profit to $3 billion, largely due to $1.1 billion in costs tied to Trump’s new tariffs. Revenue fell nearly 2% to $47 billion, with adjusted EPS dropping to $2.53 — still above the expected $2.44. GM shares slid 3% in premarket trading, and the company warned that tariff-related losses could reach $5 billion for the year, though it aims to offset at least 30% of the damage.
The mixed results underscore a key theme this earnings season: while many firms are navigating macro headwinds successfully, industrial players exposed to global trade face mounting pressure.
You might like this article:Trump Media Stock Rises After $2 Billion Bitcoin Bet
