US Stocks: Whose Numbers Are Deceiving?
When investing, a dazzling profit figure can be deceiving at first glance. Sometimes, massive growth is driven by a single accounting change, while other times, a sharp decline hides a fundamentally strong business. In this analysis, we look behind the Q3 2025 results of major US companies. With new reports just around the corner, it's the perfect time to clarify the true health of these businesses, stripped of one-off noise.
MicroStrategy reported an incredible 1001.6% growth in operating profit, turning last year's loss into a massive gain. At first glance, it seems as if the company's business operations have grown explosively, leaving competitors far behind.
In reality, this was driven by a new accounting rule that allowed the company to book the increase in Bitcoin's value ($3.9 billion) as profit, even though the asset had not been sold. For investors, this means the figure reflects cryptocurrency market movements, not a genuine leap in the company's day-to-day software business.
Intel showed an impressive 107.5% growth in operating profit, which might suggest a sharp turnaround. However, this figure is largely due to a low comparison base rather than explosive business success.
The main reason for the growth was the absence of last year's significant restructuring costs, not a surge in sales—revenue grew by only 2.8%. For investors, this is a sign of cost control and stabilization, but it's too early to celebrate, as actual demand growth remains modest.
Starbucks startled investors with a 78.7% decline in operating profit. This figure paints a picture of a collapsing business, but it is largely misleading and does not reflect the actual state of its coffee sales.
The decline was caused by a massive $755 million one-time expense for corporate restructuring and asset write-downs. Without this extraordinary expenditure, the picture would be significantly more stable. Therefore, investors shouldn't panic based on the headline number alone, although rising costs do warrant monitoring.
Honeywell reported strong 21.8% growth in operating profit, outpacing many competitors. However, this is a classic example of "bought" growth that doesn't reflect the true health of the core business.
The result was flattered by a $802 million one-time income from a legal settlement. In reality, the company's costs have increased, and without this cash injection, the picture would be much grimmer, suggesting margin pressure rather than a genuine increase in efficiency.
Amazon showed stalled operating profit growth (0.1%), an unexpectedly weak result for the tech giant. This might lead investors to mistakenly believe that the company's growth engine has cooled down.
In reality, sales revenue grew at a healthy 13.4%, but profits were offset by significant legal costs and investments in technology. This is more of a temporary setback that masks the true potential of artificial intelligence and cloud services, which investors should evaluate from a long-term perspective.
Conclusion
In conclusion, the third quarter of 2025 serves as an excellent lesson in why investment decisions should not be based on the bottom line alone. In the cases of MicroStrategy and Intel, the large growth figures were technical in nature, while Starbucks' alarming decline was due to a one-time cleanup. Before the new earnings season begins, it is always wise to verify whether a number reflects the actual performance of the business or is merely a one-off anomaly.
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