Three major technology companies reported better-than-expected third-quarter earnings on Wednesday, October 21, giving investors fresh evidence of corporate resilience. Meta (META): Reported adjusted earnings of $7.40 per share, excluding a major legal charge, and revenue of $64.6 billion. Both topped Wall Street expectations. Tesla (TSLA): Reported adjusted earnings of $0.48 per share on revenue of $28.05 billion, beating analyst estimates. IBM (IBM): Delivered a double beat, with adjusted earnings of $2.95 per share and revenue of $17.1 billion.
The results come as investors question whether heavy spending on artificial intelligence is hurting corporate profits. Meta's revenue jumped 26% from a year earlier, showing continued strength in its advertising business. Tesla benefited from recovering vehicle deliveries, although spending on AI and robotaxis continued to pressure profitability. IBM's stronger software business also helped push earnings above expectations.
All three companies beat earnings expectations, but investors remain focused on future growth, AI spending and profit margins.
The reports offer encouraging signs for technology earnings, although strong results do not necessarily guarantee higher stock prices.