3 Mega-Caps That Outperformed Expectations This Earnings Season

• Shares jumped over 10% after quarterly earnings far exceeded market expectations.

• Strong results have buyers aiming to break past the $207 record high.

• Solid performance lifted shares 5%, with the next dividend date on August 26.

• Looking for actionable trade ideas? Subscribe now to unlock access to InvestingPro’s AI-selected stock winners for up 50% off amid the summer sale!

By the second half of August, the second-quarter 2025 earnings season in the US is nearing its end. Most major companies have already reported, with only Walmart (NYSE:WMT) on August 21 and NVIDIA (NASDAQ:NVDA) on August 27 still to go. The latter is also the last among the so-called “big seven” to announce results.

Overall, this earnings season has been positive. While there have been some disappointments, like Tesla (NASDAQ:TSLA), most companies have maintained strong performance and exceeded expectations in key metrics. The bull market remains strong, with major US indexes in an upward trend and reaching record highs.

Today’s analysis looks at three standout companies with market capitalizations above $100 billion that delivered strong results.

1. Meta Platforms Inc

The quarterly results released on July 30 were clearly well-received by investors. The stock jumped more than 10% right after the announcement, driven mainly by earnings per share coming in far above expectations.

The company led by Mark Zuckerberg is still on a strong upward trend, reaching new record highs and nearing $800 per share. However, InvestingPro’s fair value suggests a possible 15% pullback, which could serve as a warning sign but also a chance for investors to buy in at a better price.

2. Alphabet

Strong results from Alphabet (NASDAQ:GOOGL) pushed the stock higher. The company beat expectations for both earnings per share and revenue, and also improved compared to the previous quarter. Alphabet also announced it will raise capital spending to $85 billion, showing its commitment to leading in artificial intelligence. However, this big investment has raised concerns about whether it can generate profits quickly enough to avoid hurting margins.

The main goal for buyers now is to test and break the record high near $207 per share.

A drop below the steep upward trend line, along with a break under $200 per share, could signal trouble for the upward trend.

3. Johnson & Johnson

(NYSE:Johnson & Johnson’s) (NYSE:JNJ) latest quarterly results reinforced its reputation as a strong, established brand. It beat earnings and revenue estimates by 3–4%, and the stock rose more than 5% in response. Like Alphabet, buyers are aiming for record highs, which match InvestingPro’s implied fair value.

Source: investingPro

It is worth noting that this is a classic dividend stock, with the next ex-dividend date set for August 26.

Final Words

With only Walmart and NVIDIA left to report, the season’s tone is already set. Strong performances from major players have kept the bull market’s momentum alive, lifting indexes to fresh highs. Whether this strength holds into the next quarter will depend on how the final results land — and how the market reacts to them.

****

Be sure to check out all the market-beating features InvestingPro offers.

InvestingPro members can unlock a powerful suite of tools designed to support smarter, faster investing decisions, like the following:

ProPicks AI

Built on 25+ years of financial data, ProPicks AI uses a machine-learning model to spot high-potential stocks using every industry-recognized metric known to the big funds and professional investors. Updated monthly, each pick includes a clear rationale.

Fair Value Score

The InvestingPro Fair Value model gives you a clear, data-backed answer. By combining insights from up to 15 industry-recognized valuation models, it delivers a professional-grade estimate of what any stock is truly worth.

WarrenAI

WarrenAI is our generative AI trained specifically for the financial markets. As a Pro user, you get 500 prompts each month. Free users get 10 prompts.

Financial Health Score

The Financial Health Score is a single, data-driven number that reflects a company’s overall financial strength.

Market’s Top Stock Screener

The advanced stock screener features 167 customized metrics to find precisely what you’re looking for, plus pre-defined screens like Dividend Champions and Blue-Chip Bargains.

Each of these tools is designed to save you time and improve your investing edge.

Not a Pro member yet? Check out our plans here or by clicking on the banner below. InvestingPro is currently available at up to 50% off amid the limited-time summer sale.