CSCO, SONY, ALC, WMT, BABA, AMAT, ROST | Q1 2025 Earnings Preview: May 14-16, 2025

On May 14-16, 2025, a diverse group of companies across technology, consumer discretionary, healthcare, and consumer staples sectors will release their Q1 2025 earnings. These reports will provide critical insights into corporate performance amid a global economy marked by trade tensions, policy uncertainty, and persistent inflation risks. With global growth projected at approximately 2.8% for 2025, down from earlier forecasts due to escalating trade barriers and policy shifts, these earnings will serve as a barometer for corporate resilience and market trends.

Economic Backdrop

The global economic outlook for 2025 is characterized by cautious optimism. The International Monetary Fund projects global growth at 2.8% for 2025, with advanced economies growing at 1.8% and emerging markets at 4.2%. However, risks are tilted to the downside, primarily due to escalating trade tensions and policy uncertainty. Recent tariff announcements and geopolitical challenges have introduced volatility into financial markets. Global headline inflation is expected to decline to 4.2% in 2025, but services inflation continues to complicate monetary policy, with central banks likely maintaining higher interest rates. Consumer sentiment remains subdued, particularly in advanced economies, where concerns over rising costs and economic stability are prevalent. Against this backdrop, these earnings reports will reveal how companies are navigating these challenges.

Key Events

Wednesday

• OPEC Monthly Report
• Fed’s Waller Speaks 5:15 AM ET
• Fed’s Jefferson Speaks 9:10 AM ET
• US Energy Inventories $CL 10:30 AM ET
• Top Earnings (BMO): $SONY, $DT
• Top Earnings (AMC): $CSCO, $CRWV, $TMC

Thursday

• UK Q1 GDP $GBP 2:00 AM ET
• EU Q1 GDP $EUR 5:00 AM ET
• PPI Inflation (Apr) 8:30 AM ET
• Weekly Jobless Claims 8:30 AM ET
• Retail Sales 8:30 AM ET
• Philly Fed Mfg Index 8:30 AM ET
• Fed Chair Powell Speaks 8:40 AM ET
• Retail Inventories 10:00 AM ET

Friday

• US Import/Export Price Index 8:30 AM ET
• Building Permits 8:30 AM ET
• US Housing Starts 8:30 AM ET
• UMich Consumer Sentiment 10:00 AM ET
• UMich Inflation Expectations 10:00 AM ET
• Weekly Open Futures Positioning 3:30 PM ET

Sector-by-Sector Analysis

Technology Sector

The technology sector, represented by Cisco (CSCO) and Applied Materials (AMAT), is a cornerstone of innovation but faces pressures from trade tensions and competitive dynamics.

• Cisco (CSCO): Cisco’s Q4 2024 results showed revenue of $13.6 billion, above guidance, with a non-GAAP EPS of $0.87, beating estimates. The company reported 14% year-over-year product order growth, bolstered by its Splunk acquisition. For Q1 2025, Cisco expects revenue between $13.75 billion and $13.95 billion, with non-GAAP EPS of $0.89 to $0.91. Investors will focus on Cisco’s AI-driven solutions, cloud services growth, and its ability to navigate competitive pressures in networking.
• Applied Materials (AMAT): Applied Materials reported Q4 2024 revenue of $7.05 billion, up 5% year-over-year, with non-GAAP EPS of $2.32. For Q1 2025, the company forecasts revenue of approximately $7.15 billion and non-GAAP EPS of $2.29, with analysts expecting $2.31. Investors will watch for updates on semiconductor demand, particularly in AI and advanced computing, and the impact of U.S. export restrictions on China sales.

Why It Matters: Technology earnings will reveal whether companies can sustain innovation-driven growth amid trade and economic pressures. Strong results could bolster investor confidence, while weaker outcomes may highlight vulnerabilities in international markets.

Consumer Discretionary Sector

The consumer discretionary sector, represented by Sony (SONY), Alibaba (BABA), and Ross Stores (ROST), is tied to consumer spending and confidence.

• Sony (SONY): Sony’s Q3 2024 results showed sales of 237.9 billion yen in its game and network services, up 16% year-over-year, with 9.5 million PlayStation 5 units sold. Analysts expect Q1 2025 EPS of $0.12, down 42.86% year-over-year. Investors will focus on PlayStation 5 sales, streaming growth via Crunchyroll, and AI-driven content creation initiatives.
• Alibaba (BABA): Alibaba’s Q3 2024 revenue was 280.154 billion yuan, slightly above estimates, with net income of 48.945 billion yuan. Analysts expect Q1 2025 EPS of $1.37, down 2.14% year-over-year. Investors will watch for e-commerce growth, cloud services expansion, and the impact of Chinese regulatory challenges.
• Ross Stores (ROST): Ross Stores’ Q4 2024 results showed EPS of $1.397, missing estimates of $1.48. The company expects Q1 2025 comparable store sales to be down 3% to flat. Investors will focus on same-store sales trends and cost management amid inflation pressures.

Why It Matters: Consumer discretionary spending reflects economic health. Strong results could signal robust consumer demand, while weaker outcomes may highlight inflation’s impact on discretionary budgets.

Healthcare Sector

The healthcare sector, represented by Alcon (ALC), remains a defensive stronghold driven by innovation.

• Alcon (ALC): Alcon’s Q4 2024 results showed core EPS of $0.78, beating estimates, with revenue of $2.4 billion, up 4% year-over-year. The company raised its 2025 outlook, expecting 5-7% sales growth. Investors will focus on surgical and vision care product demand and innovation in contact lenses and intraocular lenses.

Why It Matters: Healthcare’s defensive nature makes it resilient to economic downturns. Alcon’s earnings will show whether innovation can drive growth despite regulatory and competitive pressures.

Consumer Staples Sector

The consumer staples sector, represented by Walmart (WMT), is known for its stability during economic uncertainty.

• Walmart (WMT): Walmart’s Q4 2024 revenue was $178.83 billion, with adjusted EPS of $0.646, slightly below estimates. Analysts expect Q1 2025 EPS of $0.58. Investors will watch for e-commerce growth, grocery market share gains, and the impact of inflation on pricing strategies.

Why It Matters: Consumer staples earnings reflect spending resilience. Walmart’s performance will indicate whether it can maintain low prices and attract high-income shoppers amid economic pressures.

Investor Implications

These earnings reports will likely drive stock price movements and shape market sentiment. Strong performances and optimistic guidance could bolster confidence, while disappointing results may exacerbate volatility. Investors should:

• Review Primary Sources: Access earnings releases and conference calls on company websites, such as.
• Analyze Guidance: Forward-looking statements will be critical for assessing future growth, especially given trade and inflation risks.
• Diversify Investments: Spreading risk across sectors can mitigate volatility, as technology and consumer discretionary firms may face greater trade-related challenges, while healthcare and consumer staples remain more stable.

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Conclusion

The Q1 2025 earnings reports on May 14-16, 2025, are a pivotal moment for investors. Spanning technology, consumer discretionary, healthcare, and consumer staples sectors, these reports will provide a comprehensive view of corporate performance in a challenging economic environment. By focusing on key metrics, guidance, and sector trends, investors can make informed decisions to navigate the uncertainties ahead.

Disclaimers and Limitations