ASX Market Update – Monday, July 21

Welcome to our live coverage of the ASX for Monday, July 21. We are trialling this new format for real-time updates, with frequent pre-market insights and periodic updates throughout the day. Today’s coverage will conclude around 3:00 PM AEST. Please refresh for the latest updates, and feel free to provide feedback on how we can enhance your experience.

Earnings Reports: A Mixed Bag from Major Companies

SAP

[8:45 AM] On the earnings front, several high-profile stocks saw declines overnight as results fell short of market expectations or investors opted to cash in on recent gains.

• Performance: SAP reported a mixed Q2 2025 outcome, with earnings exceeding estimates but revenue coming in below expectations. This led to a drop in their share price by 4.1%.
  • Earnings per Share (EPS): €1.50, compared to €1.63 estimated, reflecting a 37% growth.
  • Revenue: Total revenue increased by 9% year-on-year but was still under market projections.
  • Highlights: The cloud segment experienced robust growth with a 24% rise, and a 22% increase in the cloud backlog, which now stands at €18.1 billion, thanks to advances in AI features and stringent cost management.

Tesla

Tesla shares fell by 5.0% in after-hours trading after both Q2 2025 earnings and revenue figures missed analyst expectations, although there’s some optimism surrounding plans for a more affordable vehicle model later in the year.

• Revenue: Dropped by 12% to $22.50 billion, missing the $22.74 billion forecast.
• EPS: Decreased by 16% to $0.40 from the expected $0.43.
• Notable Trends: Vehicle deliveries fell 13.5% to 384,122 units, marking the second consecutive quarterly decline despite aggressive discounting and accessible financing options.

Texas Instruments

Texas Instruments experienced a stark contrast with a significant drop of 13.3%, despite outperforming expectations in Q2 2025.

• Revenue: Came in at $4.45 billion, showing a year-on-year increase of 16%.
• EPS: Reported at $1.41, which included a 2-cent benefit not accounted for in original guidance.
• Key Insights: Operating profit surged by 25% to $1.56 billion, with margins expanding by 250 basis points to 35.1%, largely fuelled by a resurgence in the industrial market.
• Outlook: The company’s guidance for Q3 revenue of $4.45–4.8 billion and EPS of $1.48 was slightly below some analyst expectations.

Market Opening Indicators

[8:36 AM] ASX 200 futures indicate a positive opening with a rise of 23 points (+0.26%), suggesting that the market may commence at new all-time highs. This comes on the back of strong performances from Wall Street, with the S&P 500 and Nasdaq registering record highs once again.

New to the coverage? You may want to catch up with today’s Morning Wrap for the latest insights.

This summary captures essential updates about the ASX market, focusing on significant earnings results from prominent companies while maintaining an Australian English tone. The overview provides a concise snapshot of current market sentiments and indicators for investors.