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Today at a glance:
🧴 Procter & Gamble: Guidance Cut
☁️ SAP: Cloud Momentum Holds
💊 AbbVie: Immunology Surge
🌐 IBM: Consulting Lags
🦠 Merck: Tariffs Cloud Outlook
🥤 PepsiCo: Growth Stalls
📶 T-Mobile US: Mixed Signals
📞 AT&T: Competitive Strength
📱 Verizon: Subscriber Woes
🦚 Comcast: Broadband Slide
🦾 Intuitive Surgical: Tariff Worries
🧑💻 ServiceNow: AI Momentum Builds
⚙️ Texas Instruments: Signs of Recovery
🛩️ Boeing: Tariff Headwinds
🛰️ Lockheed Martin: Steady Guidance
💳 Fiserv: Clover Cools
⚡ GE Vernova: Backlog Expands
🧑💻 Intel: Grim Outlook
🧠 Lam Research: Momentum Builds
💼 Moody’s: Guidance Trimmed
🌯 Chipotle: Traffic Dips
🛩️ Southwest: Under Pressure
🦅 American Airlines: Uncertain Skies
🏡 Appfolio: Resident Expansion
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1. 🧴 Procter & Gamble: Guidance Cut
P&G’s Q3 FY25 revenue (March quarter) declined 2% Y/Y to $19.8 billion ($350 million miss), while adjusted EPS came in at $1.54 ($0.01 beat). Organic sales grew just 1%, driven by higher pricing, but volume and mix were flat. The company cut full-year guidance, now expecting organic sales to grow by ~2% (vs. 3%–5% prior) and EPS of ~$6.77, below consensus.
Headwinds include rising commodity costs, currency pressure, and tariffs—now expected to cost $400 million after tax in FY25. Management warned that tariffs are “inherently inflationary” and hinted at price increases in the next fiscal year. China remains weak, with revenue down 2% despite strength in baby care. As pricing contributions fade, P&G’s ability to sustain growth will depend on innovation—leaning on launches like Tide OxyBoost and Crest Deep Stain Remover to defend margins and brand equity.
2. ☁️ SAP: Cloud Momentum Holds
SAP’s Q1 revenue grew 12% Y/Y to €9.0 billion and non-IFRS EPS of €1.44 (in line), driven by 27% cloud growth to €5.0 billion and a 34% jump in ERP cloud revenue. Cloud gross profit climbed 31%, with the backlog rising 29% Y/Y to €18.2 billion. CEO Christian Klein reaffirmed the company's AI-first strategy, highlighting widespread cloud adoption across midsize businesses and continued traction from new products like Business Data Cloud.
SAP maintained its FY25 outlook, including cloud revenue of €21.6–€21.9 billion and €8 billion in free cash flow. Operating profit is expected to reach €10.3–€10.6 billion (+26%–30%). While tariff-driven uncertainty remains, SAP emphasized its recurring revenue base (86% of total) and internal AI tools like Joule that are boosting productivity across teams. A €5 billion buyback program continues, with €3.1 billion repurchased to date.