Apple’s earnings per share (EPS) are anticipated to be around $1.43, an increase from the previous year’s $1.40. Revenue is forecasted at approximately $89.35 billion, reflecting a 3–4% growth, with iPhone and Services revenues expected to contribute significantly.
Concerns include a potential $900 million tariff impact affecting gross margins estimated between 45.5–46.5%. Developments in Apple’s AI initiatives and strategies for AI and services growth are of interest.
Amazon Earnings Projections
Amazon’s EPS is projected at around $1.33, improving from $1.26 in the prior year. Revenue is expected to reach approximately $162.2 billion, a 9–10% year-on-year increase. Revenue segments include online stores (~$59 billion), physical stores (~$5.5 billion), third-party seller services (~$39 billion), subscription services (~$12 billion), and AWS (~$30.8 billion, up ~17%).
Key aspects include the growth of AWS amid over $100 billion in AI/data-center investments and the impact of tariffs on costs and pricing. Outcomes from Prime Day and performance in advertising and subscription services are also under observation.
Both companies are expected to show steady growth, with a focus on margins, AI developments, and tariff impacts.
With earnings now public, the high implied volatility we saw leading up to the announcements is expected to collapse. Traders who bought options ahead of the news will see the value of their positions decrease from this “volatility crush” alone. The market’s next move depends on how the actual results and forward guidance compare to the established expectations.
Apple Revenue and Market Reaction
For Apple, we were looking for steady growth with revenue around $89 billion and particular focus on iPhone sales and services. Given the mixed consumer spending data we saw earlier in the quarter, any softness in these key areas could lead to bearish sentiment. Looking back, the market’s positive reaction to the AI announcements at WWDC last month was tempered with a “wait and see” attitude, putting a spotlight on today’s commentary.
The commentary around gross margins and the impact of tariffs will be critical for setting direction in the coming weeks. We saw government data from Q2 2025 showing a slight uptick in costs for imported electronics, which validates the market’s concern. Options strategies like debit or credit spreads could be useful to play a directional move while limiting risk from volatility decay.
With Amazon, all eyes were on the 17% growth target for AWS, especially after Microsoft’s Azure reported slightly stronger growth of 19% just last week. This sets a high bar, and any perceived slowdown in Amazon’s cloud momentum will likely be punished. The results from Prime Day will also be combed over for clues about the health of the consumer.
The massive capital spending for AI, a theme we have been tracking all year, is a double-edged sword. While it signals a long-term investment, traders will be watching to see if it eats into near-term margins more than expected. If forward guidance suggests costs are rising faster than AWS revenue, we could see put buying increase as traders position for a potential pullback.
