As second-quarter earnings season hits its stride, results from corporate America are largely outpacing expectations \u2014 but not all sectors are escaping unscathed.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
This week will see earnings from 112 S&P 500 firms, including heavyweights such as Alphabet, Tesla, GM, and Coca-Cola \u2014 each offering a window into how corporate leaders are navigating rising costs, trade tensions, and shifting consumer trends.<\/p>\n\n\n\n
Coca-Cola (KO)<\/strong> provided a bright spot Tuesday, beating Wall Street\u2019s Q2 expectations as higher prices and solid demand \u2014 especially for Coca-Cola Zero Sugar, which saw 14% growth \u2014 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n General Motors (GM)<\/strong>, 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\u2019s new tariffs. Revenue fell nearly 2% to $47 billion, with adjusted EPS dropping to $2.53 \u2014 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n