Apple’s earnings per share (EPS) is expected to be around $1.43, up from last year’s $1.40. Revenue is projected at about $89.35 billion, which would show a growth of 3–4%. A significant part of this growth will likely come from iPhone and Services revenues. There are concerns regarding a potential $900 million tariff impact that could lower gross margins, estimated to be between 45.5–46.5%. People are also interested in updates about Apple’s AI projects and plans for growth in AI and services.

Amazon Earnings Projections

Amazon’s EPS is anticipated to be around $1.33, improving from $1.26 last year. Revenue is expected to hit approximately $162.2 billion, marking a 9–10% increase year-on-year. Revenue will come from several segments: online stores (~$59 billion), physical stores (~$5.5 billion), third-party seller services (~$39 billion), subscription services (~$12 billion), and AWS (~$30.8 billion, an increase of ~17%). Important points include the growth of AWS after over $100 billion in AI and data center investments and the effects of tariffs on costs and prices. The results from Prime Day and performance in advertising and subscription services are also under close watch. Both companies should show steady growth, focusing on margins, AI advancements, and tariff effects. Now that earnings are out, we expect the high implied volatility ahead of these announcements to drop significantly. Traders who bought options before the news will see their position’s value decrease due to this “volatility crush.” The market’s next steps will depend on how the actual results and future outlook match expectations.

Apple Revenue and Market Reaction

For Apple, we anticipated steady growth with revenue around $89 billion, paying close attention to iPhone sales and services. Given the mixed consumer spending data from earlier this quarter, any weakness in these key areas might create negative sentiment. Last month, the market reacted positively to AI announcements at WWDC, but this enthusiasm is now tempered with a “wait and see” approach, highlighting today’s comments. Comments on gross margins and tariff impacts will be crucial for guiding market direction in the next few weeks. Recent government data from Q2 2025 showed a slight rise in costs for imported electronics, supporting market concerns. Options strategies like debit or credit spreads could help make directional plays while limiting risk from volatility decay. With Amazon, attention is on the 17% growth target for AWS, especially after Microsoft Azure reported a stronger growth of 19% just last week. This sets a high standard, and any signs of slowing cloud performance may face punishment from the market. Results from Prime Day will also be closely analyzed for insights into consumer health. The hefty investment in AI, a key theme this year, is a double-edged sword. While it indicates a long-term commitment, traders will be alert to whether it unexpectedly impacts near-term margins. If future guidance suggests that costs are rising faster than AWS revenue, we might see increased put buying as traders prepare for a potential downturn. Create your live VT Markets account and start trading now.

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