The second-quarter earnings season continued to gather pace on Thursday, 16 July, with Taiwan Semiconductor Manufacturing Co. (TSMC) delivering record quarterly results as demand for AI chips remained exceptionally strong. The report followed a series of earnings beats from ASML, Morgan Stanley, Johnson & Johnson and BlackRock, highlighting continued resilience across the semiconductor, financial and healthcare sectors. Investors are now turning their attention to Netflix, which is scheduled to report after the US  market closes. 

TL;DR

• TSMC reported record Q2 earnings as AI chip demand continued to accelerate.

• ASML beat estimates and raised its 2026 outlook on strong AI-related investment.

• Morgan Stanley posted record revenue and earnings, driven by trading and investment banking.

• Johnson & Johnson exceeded expectations and raised its full-year guidance.

• BlackRock surpassed US$15 trillion in assets under management for the first time.

• Netflix reports after today's market close, with investors focused on advertising growth and operating margins.

Key Q2 Earnings Results 

ASML Raises Outlook as AI Demand Remains Strong

Yesterday, Wednesday, 15 July, ASML reported earnings. The tech giant delivered another strong quarter, reporting:

• Revenue: €9.33 billion (US$10.66 billion)

• Net income: €2.92 billion (US$3.33 billion)

• Gross margin: 54.0%

Both revenue and profit exceeded LSEG consensus estimates. More importantly for investors, the Dutch chip-equipment manufacturer raised its 2026 revenue outlook citing continued investment by AI chipmakers.

CEO Christophe Fouquet said customers continue expanding manufacturing capacity as demand for AI infrastructure remains strong.

The results reinforced optimism surrounding semiconductor capital spending despite ongoing uncertainty around China-related export restrictions.

Morgan Stanley Beats Estimates on Trading and Investment Banking

Morgan Stanley also reported stronger-than-expected Q2 earnings, yesterday, extending the positive trend among major US  banks. The investment bank posted record net revenue ofUS$21.35 billion, up 27% year over year and ahead of analyst expectations of aboutUS$19.7 billion. Net income rose 58% toUS$5.58 billion, while earnings per share reached a recordUS$3.46, comfortably beating consensus estimates.

Highlights included:

• Revenue:US$21.35 billion (vs. ~$19.7 billion expected)

• EPS:US$3.46 (vs. ~$2.9 expected)

• Equities trading revenue:US$6.3 billion, up 69% year over year, marking the highest in the firm's history

• Investment banking revenue:US$2.44 billion, up 58%, supported by robust IPO and advisory activity

• Wealth management: Added a recordUS$148 billion in net new assets during the quarter.

Morgan Stanley benefited from elevated client activity, a surge in AI-driven trading, stronger capital markets and resilient wealth management, reinforcing the earnings momentum seen across the US banking sector.

Johnson & Johnson Lifts Full-Year Guidance

Johnson & Johnson also delivered stronger-than-expected second-quarter results on Wednesday, beating Wall Street estimates on both earnings and revenue.

The healthcare company:

• EPS:US$2.90 adjusted vs.US$2.85 expected

• Revenue:US$25.31 billion vs.US$24.98 billion expected (up 6.6% year over year)

• Innovative Medicine sales:US$16.17 billion, up 7.8% year over year

• 2026 adjusted EPS guidance: Raised toUS$11.60-$11.75 (fromUS$11.45-$11.65)

• 2026 revenue guidance: Raised toUS$100.8 billion-$101.4 billion

Management pointed to continued strength across its Innovative Medicine business, while MedTech remained resilient. Investors also focused on the upgraded full-year guidance, signalling confidence in the company's performance during the second half of 2026.

BlackRock SurpassesUS$15 Trillion in Assets

Asset management giant BlackRock reported another record quarter, yesterday.

Key highlights included:

• EPS:US$13.91 adjusted (vs.US$12.57 expected); GAAP EPS:US$12.19

• Revenue:US$7.08 billion, up 31% year-over-year (vs.US$6.72 billion expected)

• Assets under management (AUM):US$15.34 trillion, the first time the firm has surpassed theUS$15 trillion mark

• Net client inflows:US$192 billion during the quarter, led by strong ETF demand

• Higher management fees and continued ETF inflows

• Strong operating performance, with operating income up 42% year-over-year

Growing investor demand for passive investment products and a strong equity market helped support earnings despite ongoing market volatility. The results underscored the continued resilience of the asset management industry, with BlackRock benefiting from record assets, robust ETF inflows, and higher fee income.

TSMC Reports Record Q2 Earnings

Today, Thursday, 16 July, Taiwan Semiconductor Manufacturing Co. (TSMC) reported stronger-than-expected second-quarter results, as surging demand for AI chips continued to fuel record profitability and reinforce the company's leadership in advanced semiconductor manufacturing.

Here are the main highlights:

• EPS (Net Profit): T$706.6 billion (US$21.99 billion), +77% YoY (vs. T$632.6 billion expected)

• Revenue: +36% YoY, a record high that exceeded market forecasts.

• AI demand: Strong demand for 3nm and 2nm AI chips and CoWoS advanced packaging continued to drive growth.

• Guidance: Analysts expect TSMC to raise its full-year revenue growth outlook and potentially increase its 2026 capital expenditure guidance (previously US$52B-US$56B).

• Arizona investment: Continues investing US$165 billion in US semiconductor manufacturing facilities.

• Stock performance: Shares are up 59% year to date, with a market capitalisation of approximately US$1.97 trillion.

Up Next: Netflix Earnings Preview

Netflix is scheduled to report its second-quarter 2026 results after the market closes on 16 July, with investors closely watching whether the streaming giant can sustain revenue growth and margin expansion while accelerating its advertising business. 

According to S&P Global Market Intelligence, consensus estimates call for:

• Revenue: US$12.6 billion (Visible Alpha consensus)

• FY 2026 Revenue Forecast: US$51.3 billion

• Operating Margin: 33% expected for Q2; 32% for FY 2026

• Advertising Revenue (Q2): Expected to reach US$666 million

• FY 2026 Advertising Revenue: Expected at US$3.3 billion

• Growth Drivers: Continued membership growth, lower churn, broader content offerings, expanding ad-supported plans, and growth in gaming.

• Long-term Outlook: Analysts expect operating margins to continue improving over the coming years, although there is ongoing debate over how quickly Netflix will increase operating expenses. (Source: SPGlobal)

Still, these are only market projections and only time will tell what lies ahead for this streaming giant.

Conclusion 

The latest wave of earnings seems to suggest that AI investment remains one of the strongest themes driving corporate performance in 2026. 

Semiconductor leaders TSMC and ASML continued to benefit from robust demand for advanced chips and manufacturing equipment, while Morgan Stanley, Johnson & Johnson and BlackRock demonstrated resilience across financial services and healthcare. 

Attention now shifts to Netflix, whose results could offer further insight into consumer spending, advertising growth and profitability during the second half of the year. 

*Past performance does not guarantee future results. The above is for marketing and general informational purposes only, and are only projections and should not be taken as investment research, investment advice or a personal recommendation.