Big Names Reporting Tuesday: SAP, ASM, PACCAR, Philip Morris

Q2 earnings season heats up this week with several interesting, market-moving stocks due to report that could garner added trader interest.

European Tech Leading to the Upside

SAP was the darling of European tech mavens. The stock rocketed higher for the two years preceding 2025, when tariffs and the rapid expansion of China-based AI advances contributed to a correction. Since then, investors have been seeking clear signs of a resurgence. Following Q1 earnings, , leaving traders wondering if there will be a repeat when the company reports on Tuesday. The consensus is for from €1.10 per share a year ago, with revenue advancing 9.8% to €9.1 billion. Traders will likely be looking at growth in the cloud revenue segment after the company guided revenue in this area to grow by 26-28% this year.

The semiconductor equipment manufacturer ASM International will also report on Tuesday, with traders keen to see if the easing tensions with China can help improve the bottom line. The company's share price suffered as the US pushed for curbs on semiconductor exports to China. The recent to the Asian giant has helped fuel hopes of easing the tensions that could aid ASM in recovering sales. from €3.33 per share last year, while revenue is projected to increase 20.6% to €851.6 million.

Transportation Slides, But Defensives Rise

Some investors will closely watch PACCAR's Q2 earnings on Tuesday for insight into how the tariff situation is affecting the transportation industry. Furthermore, stricter immigration policies could exacerbate the issue of finding enough truckers to meet demand. The company is in the red this year after both earnings releases so far have come in below analyst estimates. The company's and new truck sales declined, indicating that businesses are holding off on capital investment in an uncertain market. Analysts expect the company's EPS to decline to $1.37 per share from $2.13 per share a year ago, with sales also expected to fall 15% to $7.03 billion during the same period.

Tobacco giant Philip Morris will report before the US open on Tuesday. The consensus among analysts is that from $1.59 per share last year, with sales expected to grow 9.1% to $10.3 billion. Although the company is best known for its Marlboro brand, its heated tobacco unit, Iqos, is now seeing the most significant revenue growth. Analysts are optimistic about the company's smoke-free line of products, expecting the in this segment to 70.9% this year.

SAP's Upward Momentum Builds

For most of last month, SAP's share price rose, with some profit-taking going into the weekend and ahead of the earnings announcement. With the RSI trending upwards, a continuation of the move could hit resistance at the upper ‘autotrend’ line of a potential symmetrical triangle near €270 per share. A breakout of the triangle, however, could open the door to the Q2 high of €273 and the 2025 peak of €280 as the formation appears near-complete. On the flip side, support lies at the middle band at €260, with the next swing at the lower end of the triangle at €248.

Source: SpreadEx | SAP

Key Takeaways

As earnings season gets underway, analysts expect tech firms that supply AI to see a resurgence in demand, as tensions between the US and China appear to be easing. SAP cloud revenue outlook and ASM International's sales projections are in focus. Meanwhile, trade disruptions are expected to weigh on PACCAR's earnings, while Philip Morris is projected to expand profitability thanks to its smokeless tobacco division.