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Good morning investors!

During the ever important earnings season, we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover on a regular basis.

Earnings season may be winding down but the work never stops for us here — let’s dive in.

Taiwan Semiconductor (TSM)

Taiwan Semi $TSM ( ▲ 0.05% ) reported strong Q1 results with solid revenue growth and continued strength in advanced node platforms, though the quarter saw a sequential revenue dip and a modest drop in operating and profit margins.

Revenue rose 35.3% YoY to $25.53B, while net income surged 60.3% YoY to $11.0B. Diluted EPS came in at $0.43, up from $0.27 a year ago.

Operating income rose 60.0% YoY to $12.4B, with operating expenses increasing 30.3% YoY to $2.6B. Free cash flow grew 15.6% YoY to $9.0B, and operating cash flow rose 43.4% YoY to $19.0B. Profit margin expanded 510 bps to 43.1%, while operating margin improved 650 bps to 48.5%.

3nm and 5nm nodes accounted for 58% of total revenue, driving the company’s leadership in high-performance computing (HPC) and AI. Segment performance was led by HPC (+14% QoQ) and IoT (+20%), while smartphones declined –9% QoQ. Platform and node diversification continues to buffer demand volatility, but the earthquake-related loss of NT$5.3B (~$161M) impacted results.

TSMC guided Q2 revenue to $28.4–$29.2B, with gross margins of 57–59% and operating margin of 47–49%. Full-year 2025 revenue is expected to grow by mid-20s % YoY in USD terms, with a long-term gross margin target of 53%+ and ROE above 25%.

TSM shares are -3.5% so far this week.

UnitedHealth (UNH)

UnitedHealth $UNH ( ▼ 22.38% ) posted mixed Q1 results, with strong revenue growth and solid operational earnings offset by rising medical costs in Medicare Advantage and adjusted guidance for the full year.

Revenue grew 9.8% YoY to $109.6B, driven by gains across UnitedHealthcare and Optum. Net income rose to $6.29B, reversing a loss last year, while adjusted EPS rose 4.2% YoY to $7.20.

Operating income increased 15% to $9.12B, and operating expenses rose 9.4%. Operating cash flow was $5.5B, and free cash flow also improved. Profit and operating margins expanded modestly, despite higher care intensity in Medicare Advantage.

Total UnitedHealthcare medical customers increased by 780,000 YTD to 50.1M, with strong growth in Medicare Advantage and fee-based commercial offerings. Optum revenues rose 4.6% YoY, led by Optum Rx, although Optum Health faced revenue pressure from member profile changes. Medical loss ratio increased to 84.8%, reflecting a higher volume of senior care visits and mix shift in funding.

Despite near-term challenges, the company reaffirmed its strategic focus and revised FY2025 guidance to adjusted EPS of $26.00–$26.50, citing addressable Medicare dynamics and ongoing efficiencies across operations.

UNH shares are -24.5% so far this week.

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Netflix (NFLX)

Netflix $NFLX ( ▲ 1.19% ) delivered strong Q1 2025 results with double-digit growth across key metrics, driven by higher pricing and early signs of traction in its advertising business.

Revenue rose 13% YoY to $10.54B, while net income increased 24% to $2.89B and EPS came in at $6.61, up from $5.28 a year ago.

Operating income jumped 27% to $3.35B, pushing operating margin to 31.7% (+3.6 pts), while operating expenses increased 14.4% YoY to $7.2B. Free cash flow surged 24.5% to $2.66B, and operating cash flow grew 26% to $2.79B.

Regional revenue breakdown showed solid trends: UCAN +9% YoY, EMEA +15%, LATAM +8%, and APAC +23%. The UCAN region saw some price-related drag in Q1 but is expected to reaccelerate in Q2. Ads and live content (e.g., WWE, NFL) continue to support monetization and engagement strategies globally.

Netflix launched its in-house ad tech platform in the U.S. and reaffirmed its 2025 goal to double ad revenue. While advertising is still a small portion of revenue, management noted accelerating contributions in upcoming quarters.

For Q2, Netflix guided to $11.03B in revenue (+15% YoY), $3.68B in operating income, 33.3% operating margin, and EPS of $7.03. Full-year 2025 guidance remains unchanged with $43.5–$44.5B in revenue and 29% operating margin.

NFLX shares are +10.7% so far this week.

Johnson & Johnson (JNJ)

Johnson & Johnson $JNJ ( ▲ 2.31% ) posted solid Q1 results, driven by balanced growth across its Innovative Medicine and MedTech segments, along with strong cash generation and robust pipeline progress.

Revenue grew 2.4% YoY to $21.89B, while net income surged 238% YoY to $10.99B due to one-time reversals of litigation expenses. Adjusted EPS increased 2.2% YoY to $2.77.

Operating income climbed 267% YoY on a GAAP basis, largely due to the $6.97B litigation reversal. Operating expenses declined 5.7% YoY as R&D and SG&A spending fell. Free cash flow improved to ~$3.4B.

U.S. customer sales rose 5.9% YoY, reflecting resilience in core U.S. markets. Innovative Medicine grew 2.3% overall, led by oncology and immunology, while MedTech increased 2.5%, with cardiovascular and surgical technologies seeing notable gains. International sales declined, primarily due to FX headwinds. Gross and operating margins expanded significantly due to lower cost of goods sold and one-time income benefits.

The company raised full-year 2025 revenue guidance slightly, with operational sales expected to grow 3.3%–4.3% and adjusted EPS growth maintained at 6.2% at the midpoint. The acquisition of Intra-Cellular Therapies and approvals for TREMFYA and RYBREVANT bolster long-term growth visibility.

JNJ shares are +3.9% so far this week.

Bank of America (BAC)

Bank of America $BAC ( ▲ 0.21% ) posted strong Q1 results, with solid YoY growth driven by higher net interest income (NII) and broad-based noninterest income strength across segments.

Revenue rose 6% YoY to $27.4 billion, while net income increased 11% YoY to $7.4 billion. Diluted EPS came in at $0.90, up from $0.76 a year ago.

Operating income was $8.1 billion (+11.8%), while non-interest expense rose 3% to $17.8 billion. The bank reported provision for credit losses of $1.48 billion, up from $1.32 billion in Q1 2024. Net interest income grew to $14.4 billion, a 3% YoY increase.

Consumer Banking posted revenue of $10.5 billion (+3%) and net income of $2.5 billion, supported by higher card income and digital engagement. Global Wealth & Investment Management (GWIM) generated $6.0 billion in revenue (+8%) and $1.0 billion in profit on record AUM. Global Banking revenue was flat at $6.0 billion, while Global Markets revenue jumped 12% YoY to $6.6 billion with record equities trading. Average deposits rose 3% YoY, while average loans increased 4% YoY. The CET1 ratio remained solid at 11.8%.

BofA returned $6.5 billion to shareholders through $2.0 billion in dividends and $4.5 billion in buybacks. Management reaffirmed its disciplined investment strategy and stable credit quality, but did not provide explicit forward guidance.

BAC shares are +4.3% so far this week.

Abbott Labs (ABT)

Abbott Labs $ABT ( ▲ 0.99% ) delivered solid Q1 results with strong organic sales growth and margin expansion, driven by standout performance in Medical Devices and Adult Nutrition, while Diagnostics faced continued headwinds from declining COVID testing revenue.

Revenue rose 4.0% YoY to $10.36B, with net income increasing 8.2% YoY to $1.33B. and EPS growing 11.2% YoY to $1.09.

Operating income rose 22% to $1.69B, with operating expenses up just 1.0% to $8.67B. Operating and profit margins both expanded, and free cash flow increased 14% to $1.29B. Organic sales grew 6.9%, or 8.3% when excluding COVID testing.

Medical Devices was the growth engine, up 12.6% organically, with strong momentum in Diabetes Care, Electrophysiology, and Structural Heart. Adult Nutrition also posted robust organic growth (+8.7%), led by strength in Ensure® and Glucerna®. Diagnostics declined 7.2% YoY, but Core Lab sales still rose organically. R&D rose 4.6% to $716M, supporting innovation efforts such as the Volt™ PFA system and the TriClip™ device.

Abbott also declared its 405th consecutive quarterly dividend, underscoring its commitment to shareholder returns.

Abbott reaffirmed its full-year 2025 outlook, guiding to organic sales growth of 7.5%–8.5% and adjusted operating margin of 23.5%–24.0%. Full-year adjusted EPS is projected between $5.05–$5.25, with Q2 adjusted EPS expected in the range of $1.23–$1.27.

ABT shares are +4.1% so far this week.

Goldman Sachs (GS)

Goldman Sachs $GS ( ▲ 2.09% ) reported a strong Q1, delivering better-than-expected results across key metrics, with record revenue in equities and robust activity in FICC and debt underwriting.

Net revenue rose 6% YoY to $15.06B, while net income grew 15% YoY to $4.74B. Diluted EPS came in at $14.12, up 22% from $11.58 a year ago.

Profitability improved as operating income rose 8% to $5.65B and net interest income surged 23% to $2.90B. Operating expenses rose modestly (+5%) to $9.13B, leading to improved margins.

Global Banking & Markets was the standout with $10.71B in revenue (+10% YoY), led by record equity financing and strong derivatives trading. Asset & Wealth Management saw a modest decline (-3%) due to weak equity and debt investment returns, while Platform Solutions revenue fell slightly (-3%) as deposit balances declined.

Provision for credit losses fell 10% YoY to $287M, driven by lower impairments. ROE climbed to 16.9%, up from 14.6% in Q1 2024. CET1 ratio remained strong at 14.8% (Standardized) and 15.5% (Advanced).

Goldman returned $5.34B to shareholders, including $4.36B in buybacks and a $3.00/share dividend. Management reaffirmed its long-term focus on capital efficiency and strategic execution but did not issue formal forward guidance.

GS shares are +3.2% so far this week.

Prologis (PLD)

Prologis $PLD ( ▲ 1.81% ) reported strong Q1 results, showcasing steady top-line growth, robust leasing activity, and margin expansion despite macroeconomic uncertainty and cautious customer sentiment.

Revenue rose 9.2% YoY to $2.14B, driven by strength in rental income and strategic capital revenue. Net income grew modestly by 1.2% to $591.5M, while diluted EPS held steady at $0.63.

Operating income surged 21.9% YoY to $878.4M, supported by stable expense control. Operating expenses rose 3.1% YoY to $1.33B. Core FFO increased 10.9% YoY to $1.42 per share and AFFO rose 5.0% to $1.08B.

Cash same store NOI climbed 6.2% YoY and net effective NOI was up 5.9%. Average occupancy held firm at 94.8%, and net effective rent change remained exceptionally strong at +53.7%. Prologis completed $811M in acquisitions, a 246.8% increase YoY, while continuing to break ground on development projects with attractive yields and value creation.

The company reaffirmed its full-year guidance, expecting Core FFO of $5.65–$5.81 per share, average occupancy of 94.5%–95.5%, and strong cash flow generation. With $6.5B in liquidity and a fortress balance sheet, Prologis is well-positioned to capitalize on demand tailwinds and long-term structural growth in logistics real estate.

PLD shares are +6.1% so far this week.

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Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.