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.

Alphabet $GOOGL ( ▲ 3.17% ) posted a strong quarter driven by steady gains in Search, a rebound in YouTube, and continued strength in Cloud. The company is going all-in on AI infrastructure, ramping CapEx as it bets on long-term platform dominance. While free cash flow took a hit, execution remains solid and core businesses continue to deliver.

🔑 Key Points

👀 What You Need to Know

Alphabet’s core businesses showed durable strength, with Search and Cloud both delivering solid growth. But the sharp drop in free cash flow, driven by a $22B CapEx spike, raises execution risks. Management reiterated its full-year outlook and raised CapEx guidance to $85B, signaling full commitment to AI infrastructure. Investors will need to see real monetization from tools like Gemini and Cloud AI.

GOOGL shares are +3.9% so far this week.

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Tesla’s $TSLA ( ▲ 6.22% ) Q2 results reflected a company in transition, leaning hard into autonomy and AI while core vehicle margins remain under pressure. The launch of Robotaxi in Austin, ongoing investment in AI infrastructure, and new model builds show a company betting on its future beyond EVs. But with falling deliveries and collapsing free cash flow, execution in the coming quarters will be critical to justify the pivot.

🔑 Key Points

👀 What You Need to Know

Tesla’s AI and Robotaxi story is gaining momentum, but the core auto business continues to weaken under pressure from falling deliveries, tariffs, and soft pricing. Margins compressed again, and Q2’s free cash flow cratered despite record energy deployments and growing software capabilities. The company is clearly positioning for an autonomy-led future, but for now, it’s still an EV maker facing cost absorption issues and volume headwinds.

TSLA shares are -7.4% so far this week.

Coca-Cola $KO ( ▼ 0.75% ) posted a mixed second quarter, with strong margin execution and solid pricing offset by a modest revenue miss and weaker volumes. While unit case sales slipped, key brands like Coke Zero Sugar and Diet Coke continued to gain traction. Strategic marketing efforts and disciplined cost controls helped the company expand margins and reaffirm full-year guidance.

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👀 What You Need to Know

Coca-Cola’s Q2 was a mixed bag as it missed revenue expectations for the first time in several quarters, but still managed to beat on earnings. That beat came thanks to strong margins and careful cost control, even though fewer drinks were sold overall. A big one-time payment for fairlife made cash flow look worse than it really is. With full-year guidance still intact, the company seems confident, but soft volumes and macro pressure could weigh on the back half.

KO shares are -1.1% so far this week.

Lockheed Martin $LMT ( ▼ 0.22% ) posted a brutal Q2 earnings that was marred by $1.6 billion in legacy program charges that gutted profits and crushed cash flow. While demand for core platforms like the F-35 and missile systems remains firm, execution issues across Aeronautics and RMS derailed the quarter. The company reaffirmed full-year sales and FCF guidance, but slashed its EPS outlook by over 20%.

🔑 Key Points

👀 What You Need to Know

This quarter was a stark reminder that execution is Lockheed’s greatest risk right now. Massive losses on long-running legacy programs wiped out earnings power just as defense budgets remain robust. With F-35, THAAD, and missile systems still in demand, the top-line story is intact, but the bottom line now hinges on clean execution going forward. The $500M in buybacks helps, but sentiment will stay fragile until margins stabilize.

LMT shares are -9.4% so far this week.

IBM $IBM ( ▲ 1.12% ) delivered a strong second quarter, showcasing its ability to scale GenAI opportunities while executing across Software and Infrastructure. Profitability improvements outpaced revenue growth, fueled by higher-margin business mix and disciplined expense management. With strong free cash flow and shareholder returns, the company raised its full-year outlook and highlighted continued confidence in demand.

🔑 Key Points

👀 What You Need to Know

IBM is clearly benefiting from its pivot toward hybrid cloud and AI-led software solutions. Red Hat, Automation, and IBM Z all posted strong gains, validating demand in core verticals. The boost in margin and guidance reflects operational strength, not just top-line growth. With GenAI bookings growing rapidly and $13.5B+ in FCF now expected, IBM is proving it can fund innovation while rewarding shareholders—positioning it as a defensive AI play in the current tech rotation.

IBM shares are -8.9% so far this week.

Verizon’s $VZ ( ▼ 1.31% ) second quarter was steady across the board, with modest growth in service revenue and another strong beat on free cash flow. Wireless equipment sales were a standout, helping offset sluggish subscriber trends. Business revenue remained flat, but margins held up thanks to ongoing cost discipline. Management raised full-year guidance, reinforcing confidence in execution through the second half.

🔑 Key Points

👀 What You Need to Know

Verizon’s Q2 wasn’t flashy, but it checked the right boxes for cash flow, capital returns, and execution. While subscriber additions were light, the surge in equipment revenue helped power a clean beat. Business wireline stayed soft, but wireless margins held steady and broadband net adds remained positive. With a raised full-year outlook and a clear focus on cost control, Verizon continues to lean into its role as a dependable compounder.

VZ shares are +5.5% so far this week.

Intel $INTC ( ▲ 5.53% ) reported second-quarter results that showed the cost of its transformation is mounting. Despite flat revenue, losses widened sharply as the company took a hit from restructuring and impairment charges, putting margins under heavy pressure. Leadership reaffirmed its cost-cutting targets and remains committed to streamlining the business and monetizing assets.

🔑 Key Points

👀 What You Need to Know

Intel is in the middle of a painful reset, with restructuring costs and underutilized fabs dragging profitability deep into the red. While revenue held steady, execution remains fragile and free cash flow is back in the red. The company’s focus on hitting its $17B OpEx target and pulling back on global fab expansions shows discipline, but Q3 guidance confirms the road to recovery will be gradual.

INTC shares are -2.0% 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.