Earnings Positivity: 2 Companies Raising Guidance

The 2025 Q3 earnings cycle is in full swing, with many S&P 500 companies on the docket to reveal quarterly results in the coming weeks.

So far, several companies – American Express AXP and Roku ROKU – have raised guidance in one way or another, reflecting positive business momentum. Let’s take a closer look at what drove the strong results.  

Roku

Roku posted a double-beat concerning our headline expectations, with adjusted EPS tripling alongside a 14% sales increase. Notably, the company posted positive operating income for the first time since 2021.

Advertising efforts and subscription growth led to the strong quarter, with the company raising its fiscal year outlook following the print. The current year EPS outlook jumped following the guide higher, as we can see below. The stock is a current Zacks Rank #1 (Strong Buy).  

American Express

American Express posted a double-beat concerning our headline expectations, with adjusted EPS climbing 19% alongside a 10% sales increase. AXP raised its current year sales and EPS outlook thanks to the strong results, with shares seeing a nice pop post-earnings.

Sales of $18.4 billion reflected a quarterly record, with successful launches of updated Platinum Cards providing nice benefits. Increased Card Member spending also provided big tailwinds, with Net Interest Income of $4.5 billion also exceeding our consensus estimate by nearly 4%.

Current year sales expectations jumped following the print, as shown below.

Bottom Line

The 2025 Q3 cycle is all about guidance, and both companies above – Roku ROKU and American Express AXP – have cleared the crucial hurdle, upping their outlooks in one way or another.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research