TL;DR

Alphabet, Tesla, and IBM beat Q2; Chipotle cuts outlook; ServiceNow, T-Mobile, Delta guide higher.

Highlights

• Tesla Q2 revenue fell 12% YoY as EV deliveries dropped 13.5%; margins narrowed to 4.1%1. CEO Musk warned of “rough quarters” ahead but highlighted AI/robotaxi initiatives1. Net income was supported by a $284M Bitcoin revaluation gain10. Shares were flat AH1.
• Alphabet beat Q2 expectations (EPS $2.31 vs. $2.18 est.; $96.43B revenue)2, but shares slipped ~2% AH as 2025 capex guidance was raised by $10B to $85B, signaling higher AI/cloud investment costs2.
• IBM topped Q2 estimates and raised guidance, with generative AI revenue at $7.5B, but shares fell 5.5% AH after a strong YTD rally3.
• ServiceNow beat Q2 and raised 2025 outlook on strong AI-driven demand; shares rose ~8% AH6.
• T-Mobile exceeded Q2 forecasts, raised 2025 subscriber/free cash flow outlooks on record postpaid gains; AT&T also beat but shares fell post-rally4.
• Chipotle missed revenue and cut its 2025 sales outlook again as same-store sales and traffic declined; shares dropped 9–10% AH5.
• Delta Air Lines beat Q2, reinstated full-year guidance, and raised its dividend amid rebounding travel demand; Southwest and Alaska Air also signaled sector recovery11.
• Mattel beat Q2 profit view but trimmed 2025 guidance due to tariff risks and weaker Barbie/Fisher-Price demand; shares fell ~3% AH14.
• Mexico will issue up to $10B in bonds to support Pemex liquidity; Pemex dollar bonds rallied, Fitch moved to Rating Watch Positive, but S&P flagged ongoing high leverage7.
• White House dismissed reports of imminent US-EU trade deal as speculation, maintaining trade policy uncertainty8.
• Musk targets year-end rollout of unsupervised Tesla FSD in select US cities, aiming to accelerate autonomous driving adoption12.
• PUMP token dropped sharply after co-founder ruled out a near-term airdrop, erasing $500M+ in value13.

Commentary

Tech earnings were in focus after the close, with Alphabet 2, IBM 3, and ServiceNow6 all beating expectations but seeing diverging stock reactions. Alphabet ’s strong quarter was overshadowed by sharply higher capex guidance, raising investor questions about near-term profitability as AI and cloud investments accelerate2. IBM ’s shares fell despite solid results and raised guidance, likely reflecting profit-taking after a strong run3. ServiceNow stood out with robust AI-driven growth and a positive outlook, sending shares higher in after-hours trading6.

Tesla ’s Q2 confirmed ongoing margin and demand pressures in the EV space, with revenue and deliveries both declining and price cuts weighing on profitability1. A $284M Bitcoin revaluation gain helped offset weaker auto results10, but CEO Musk’s cautious outlook and focus on AI/robotaxi expansion suggest a period of transition1. The planned year-end rollout of unsupervised FSD in US cities12 and Musk’s push for more voting control ahead of the November shareholder meeting15 will be key developments to watch.

Consumer and cyclical sectors showed mixed trends. Chipotle ’s second guidance cut this year and a sharp AH stock drop highlight persistent demand softness in fast-casual dining5, while Mattel’s cautious 2025 outlook reflects both weak toy demand and tariff uncertainty14. In contrast, Delta ’s results and dividend hike, along with positive updates from Southwest and Alaska Air , point to a recovery in US airline demand11.

In fixed income, Mexico’s $10B bond issuance to support Pemex improved sentiment in Pemex dollar bonds, with Fitch moving to Rating Watch Positive. However, S&P’s warning on ongoing high leverage keeps credit risk elevated7. The White House’s denial of imminent US-EU trade progress keeps trade policy in flux, a factor for both equities and FX8.

Crypto markets saw volatility as Tesla ’s Bitcoin gains provided a rare positive for its earnings10, while the PUMP token’s sharp drop after an airdrop was ruled out underscores the event-driven nature of digital assets13. Traders should focus on follow-through in tech, consumer demand signals, and EM credit risk into the next session.