Technology earnings season roundup

Six of the so-called ‘Magnificent Seven’ have reported their latest quarterly earnings. Overall, the numbers were exceptional as demand for artificial-intelligence (AI) related cloud computing has proved even better than Wall Street’s bullish expectations. 

The second-quarter earnings season has confirmed what many in Silicon Valley and Wall Street suspected: artificial intelligence (AI) is no longer just a buzzword – it’s a revenue engine. Technology giants including Microsoft, Meta Platforms, Amazon, and Alphabet have posted results that exceeded expectations, largely driven by their aggressive AI strategies.

The only member of the Magnificent Seven that has not issued its latest figures is artificial intelligence (AI) chip group Nvidia, which will not post its earning statement until 27 August. Of the six that have reported, the only company not posting an impressive set of figures was electric vehicle (EV) maker Tesla, as its chief executive Elon Musk discovers it is better not to mix business and politics. 

Here is a summary of how the earnings season went for each of these businesses.

Alphabet

The Google-owner’s second-quarter results delivered a strong beat on both revenue and earnings forecasts, underscoring the company’s accelerating momentum in AI and cloud computing. Total revenues rose 14% year-on-year to $96.4bn, with Google Cloud’s revenues surging an impressive 32% to $13.6bn, driven by demand for AI infrastructure and generative AI solutions. The company raised its 2025 capital expenditure forecast to $85bn, up from $75bn, to support expanded data centre capacity and AI development. The search-engine owner maintained a robust 32.4% operating margin, reinforcing its position at the forefront of the AI race.

Amazon 

The online retailer and cloud computing giant posted strong second-quarter results, with net sales rising 13% year-over-year to $167.7bn, surpassing Wall Street’s expectations. Amazon Web Services (AWS) contributed $30.9bn in revenue, marking a 17.5% increase, though its performance slightly lagged rivals such as Microsoft and Google. Chief executive Andy Jassy highlighted the company’s accelerating artificial intelligence initiatives, including the expansion of Alexa+, new developer tools like Kiro, and logistics optimisation through DeepFleet. Amazon also reported its largest Prime Day ever and announced plans to expand fast delivery services to thousands of smaller US communities by the year-end.

Meta Platforms 

The Facebook and Instagram company also delivered a blockbuster second-quarter performance – marking its tenth consecutive quarterly earnings beat – as revenue surged 22% year-over-year to $47.52bn and earnings per share jumped 38% to $7.14. The company’s advertising business led the charge, generating $46.56bn in revenue, buoyed by an 11% increase in ad impressions and a 9% rise in average ad prices. Daily active users across Meta’s family of apps climbed to 3.48 billion, while chief executive Mark Zuckerberg emphasised the transformative impact of AI on ad efficiency. Despite a $4.53bn loss in its Reality Labs division, Meta raised its full-year capital expenditure forecast to as much as $72bn, signalling aggressive investment in AI and infrastructure.

Microsoft

The Windows software developer delivered a standout fourth-quarter performance, surpassing Wall Street expectations across the board. Revenue surged 18% year-over-year to $76.44bn, beating the consensus estimate of $73.81bn, while earnings per share hit $3.65, well above the expected $3.37. The tech giant’s Intelligent Cloud segment, fuelled by Azure, grew 26% to $29.88bn, exceeding forecasts and marking the first time Microsoft disclosed Azure’s annual revenue – an impressive $75bn. Guidance for the current quarter was regarded as bullish.

Apple

The iPhone make delivered a robust performance in its fiscal third quarter of 2025, reporting a record June quarter revenue of $94bn – up 10% year-over-year – driven by double-digit growth in iPhone, Mac, and Services sales across all global markets. The company also set an all-time high for Services revenue and saw its active device installed base reach new peaks, reflecting strong customer loyalty. Apple declared a dividend of $0.26 per share and highlighted the momentum from its WWDC25 announcements, including a redesigned software interface and expanded Apple Intelligence features.

Tesla

Elon Musk is learning that business and politics do not mix the hard way.  Tesla’s second-quarter results painted a challenging picture for the EV giant, as revenue fell 12% year-on-year to $22.5bn and vehicle deliveries dropped 14%, marking a second consecutive quarter of declines. The company missed Wall Street expectations on both earnings and sales, with chief executive Elon Musk warning of potentially “rough quarters” ahead. The downturn was compounded by a growing political spat between Mr Musk and President Trump, whose administration recently passed the “Big Beautiful Bill” – legislation that phases out the $7,500 federal EV tax credit and dismantles key emissions credit markets that have historically buoyed Tesla’s profits. The fallout has been swift. Tesla’s stock is down about 20% in the year-to-date. The clash with Trump – once a political ally – now threatens Tesla’s regulatory advantages, government contracts, and its ambitious robotaxi rollout, underscoring how political risk has become a central challenge for the company’s future.

Nvidia

Although Nvidia’s results are almost a month away from being released, they are highly anticipated by markets. The market is walking a tightrope between sky-high expectations and mounting global risks. Analysts are forecasting revenue of $30.04bn, up 122% year-on-year, with earnings per share expected to hit $1.00, driven largely by explosive growth in its data centre business, which now accounts for nearly 90% of total sales. Investors are laser-focused on the rollout of Nvidia’s next-generation Blackwell architecture, although supply chain delays and a recent $5.5bn inventory write-down tied to US export restrictions to China have cast a shadow over the outlook. Despite these challenges, Nvidia’s dominance in AI infrastructure – fuelled by demand from hyperscalers such as Microsoft, Meta, and Tesla – has kept sentiment bullish. A beat of market expectations could reignite the AI rally; a miss could send shockwaves through global equities.