- Q4 earnings mostly beat expectations, but indices remain range-bound.
- Johnson & Johnson and TSMC extend uptrends on solid outlooks.
- Meta lifts revenue guidance and doubles AI investment plans.
The US earnings season for the fourth quarter of 2025 is still underway, but most major companies have already reported their results. That gives investors a clear picture of how the season is shaping up.
So far, the results have been slightly positive. Many companies beat expectations, but the overall impact on the broader market has been limited. The and S&P 500 have moved in a narrow range, with returns between minus 1% and plus 1.5%.
Investors are now waiting for results from Walmart (NASDAQ:WMT), Berkshire Hathaway (NYSE:BRKb), and especially Nvidia (NASDAQ:NVDA), which usually reports toward the end of the earnings cycle.
In this analysis, we look at (NYSE:JNJ), (NYSE:TSM), and (NASDAQ:META). All three delivered results above market expectations and still show room for further growth.
Johnson & Johnson’s Vertical Growth
For more than six months, Johnson & Johnson’s share price has been rising steadily. The upward trend continued even after the company released its quarterly results on January 21.
The numbers were largely in line with expectations and did not show major surprises in the key figures. Even so, the market reacted strongly. In the days that followed, the stock moved sharply higher, almost in a straight line, highlighting investor confidence in the company’s strength and outlook.
Investors can take comfort in the fact that revenue came in above expectations, even after the agreement with the Trump administration to lower drug prices. In exchange, Johnson & Johnson and several other pharmaceutical companies received exemptions from certain customs duties, which reduces the uncertainty tied to sudden policy shifts.
With that balance in place, the base case remains continued growth. If momentum holds, the next logical price target stands near $250 per share.
Another Strong Performance by TSMC
Taiwan Semiconductor Manufacturing released its quarterly results in mid January, continuing its pattern of beating market expectations. The standout number this time was earnings per share, which came in 10.6 percent above forecasts.
The market responded quickly, with the stock rising by nearly 5 percent in the initial reaction.
The company expects revenue to grow by about 30 percent this year. It also plans capital spending of 52 to 56 billion dollars, signaling continued investment, especially in artificial intelligence and related technologies.
Like Johnson and Johnson, the stock remains in an upward trend and is now moving closer to the 400 dollar per share level.
Meta Raises Forecasts for Q1 2026
Meta’s shares rose by less than 10 percent after the company released its results. That marks a clear improvement from the previous quarter, when the stock fell by more than 11 percent.
The quick pullback that followed has eased some of the buying momentum. Even so, the company remains financially strong and still shows close to 6 percent growth potential.
Optimism is supported by management’s guidance for the first quarter. The company expects sales between 53.5 billion and 56.5 billion dollars, well above the market consensus of 51.41 billion dollars.
Capital spending plans are also drawing attention. Meta expects to invest between 115 billion and 135 billion dollars this year in artificial intelligence and related infrastructure. That figure is higher than analysts had forecast and is roughly double the level spent in 2025.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.