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.

This earnings season is mostly in the rear-view mirror but there were still a couple of big names that we cover that reported this week.

Let’s dive in.

Apple’s $AAPL ( ▼ 0.14% ) June quarter delivered a clean beat across all major segments, with iPhone and Services driving momentum and margin expansion. Global demand held firm despite macro pressures, and management reinforced its focus on ecosystem growth and disciplined capital returns. The company avoided formal guidance, keeping attention on execution and AI positioning heading into the critical holiday period.

🔑 Key Points

👀 What You Need to Know

Apple’s quarter confirms that the company is firing on multiple cylinders, with hardware and high‑margin services driving resilient growth. Cash flow softness highlights the cost of sustaining CapEx and managing inventory cycles, even as margins improve. The muted performance in iPad and Wearables shows discretionary segments remain vulnerable to macro pressure. Investors now pivot to the year‑end cycle, with AI integration, tariff impacts, and regional demand shaping sentiment.

AAPL shares are -1.2% so far this week.

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Microsoft $MSFT ( ▼ 1.42% ) closed fiscal 2025 with a strong quarter, powered by Azure growth and expanding cloud adoption. The company continued to lean into AI-driven demand while maintaining operational discipline across its core segments. Management emphasized that cloud and Copilot usage is gaining traction across enterprise and consumer markets, while infrastructure investments remain a key strategic priority heading into FY2026.

🔑 Key Points

👀 What You Need to Know

Microsoft’s results reinforce its position as the AI and cloud leader, with Azure growth well above peers and continued operating leverage. Investors will look for clarity on FY2026 growth targets, the pace of AI monetization, and whether elevated CapEx can convert into sustained free cash flow gains. With margins improving and cloud adoption accelerating, Microsoft enters the next fiscal year with strong momentum but rising expectations.

MSFT shares are +4.7% so far this week.

Amazon $AMZN ( ▼ 1.5% ) delivered a strong quarter driven by double‑digit top‑line growth and expanding margins. Cloud, advertising, and Prime Day strength offset near‑term free cash flow pressure from massive AI and logistics reinvestment. Management struck a balanced tone heading into Q3, with guidance reflecting both operational momentum and cost volatility.

🔑 Key Points

👀 What You Need to Know

Amazon is showing operational leverage while entering a heavy investment cycle. AWS drives over half of operating profit but faces margin compression as AI and cloud expansion accelerate. Retail and advertising remain robust, highlighted by record Prime Day and higher ad yields. Free cash flow deterioration reflects the capex cycle, not weakening fundamentals. Near‑term sentiment hinges on margin stability and execution through the reinvestment phase.

AMZN shares are -6.9% so far this week.

Meta $META ( ▼ 2.07% ) delivered a powerful quarter fueled by steady ad demand and rising engagement across its platforms. The company is leaning hard into artificial intelligence and infrastructure expansion, signaling its long‑term vision even as spending climbs. Reality Labs continues to weigh on profitability, but management’s willingness to absorb near‑term pressure reflects confidence in future growth and platform dominance.

🔑 Key Points

👀 What You Need to Know

Meta’s quarter underscores the strength of its ad engine while it spends aggressively to secure AI leadership. The surge in CapEx reflects a strategic pivot to future monetization, but it comes at the cost of near‑term free cash flow. Reality Labs remains a meaningful drag, and regulatory risks, especially in Europe, are in focus. If Meta can sustain ad growth while AI investments begin to yield revenue leverage, its stock momentum could continue, but execution will be closely watched.

META shares are +7.6% so far this week.

Visa $V ( ▼ 0.09% ) delivered a solid quarter as resilient consumer spending and cross‑border travel drove healthy network activity. The company highlighted ongoing strength in e‑commerce and in‑person transactions while expanding its footprint in emerging digital payment areas. Despite this momentum, investors remain focused on rising operating costs and legal provisions that have weighed on reported profitability.

🔑 Key Points

👀 What You Need to Know

Visa’s Q3 shows that its core payment engine remains resilient, but litigation costs are eroding GAAP margins and dampening investor enthusiasm. Non‑GAAP earnings illustrate healthy operations and strong cash generation, yet the stock reaction was muted as guidance stayed conservative. Management continues to lean on buybacks and dividends to support shareholder value. Regulatory scrutiny, digital currency initiatives, and ongoing interchange cases remain the key watchpoints heading into Q4.

V shares are -3.6% so far this week.

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Mark & Chris

The Investor’s Edge

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.