Microsoft $MSFT just reminded everyone what real leadership looks like.
The tech titan posted a double beat, with $3.46 in EPS on $70.07B in revenue, both topping estimates.
That alone is impressive.
But the price reaction? That’s what turned heads.
Shares ripped higher!
The stock had its best earnings-day gain since 2015, and added a staggering $200 billion in market cap in a single session.
That’s larger than most S&P 500 companies' total market cap.
It wasn’t just about beating expectations. It was about reaffirming dominance in a market searching for clarity.
Microsoft hit all the right notes between its cloud strength, AI tailwinds, and fortress balance sheet.
And the tape responded in kind...
This is what real demand for a stock looks like. No fade. No hesitation. Just buyers showing up in force.
When the biggest names in the world move like small caps, that’s a clue.
So what else did we learn from yesterday's earnings reactions? Let’s dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Carrier Global $CARR had the best reaction score after reporting a double beat.
The company reported revenues of $5.22B, versus the $5.19B estimate, and earnings per share of $0.65, versus the $0.58 estimate.
Becton Dickinson $BDX had the worst reaction score after reporting mixed results.
The company reported revenues of $5.27B, versus the $5.35B estimate, and earnings per share of $3.35, versus the $3.28 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
MSFT had its best earnings reaction since 2015:
Microsoft rallied 7.6% after this earnings report, and here's why:
Azure revenue growth exceeded expectations and grew by 33% year-over-year.
They're continuing to invest billions into future growth opportunities.
They're dominating AI. Over 65% of Fortune 500 companies now use the Azure OpenAI Service.
This company is in an entirely different solar system. They're so good!
The price recently fell below a key former support level and resolved a textbook distribution pattern.
However, the bulls have stepped in and repaired all of the damage. The top has been undone.
If MSFT is above 385, the path of least resistance is sideways to higher for the foreseeable future.
LLY had its worst earnings reaction ever:
Eli Lilly fell 11.7% after this earnings report, and here's why:
Despite excellent performance from their GLP-1 drugs, the market had priced in better results.
Margins continue to contract as they face more competition.
The management team reaffirmed its 2025 guidance. The market was looking for them to raise their forecast.
This company has some of the most exciting drugs ever, with Mounjaro and Zepbound. But the market has priced the stock to perfection, and they failed to deliver.
The stock has been stair-stepping higher for years and has returned more than 9x since breaking out in 2018.
We've anticipated messy price action with the price below a key Fibonacci extension level.
If LLY is below 934, the path of least resistance is sideways for the foreseeable future.
Thank you for reading.
- The Beat Report Team
PS: If you want to trade earnings season like Kenny, now’s your shot. You’ll get access to his Live Room, curated watchlist, and proprietary VWAP script. If you are already an All Star Charts member, call 323-421-7910 or email mary@stockmarketmedia.com.
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