Earnings season is heating up, and all eyes are on the Magnificent 7. Amazon, Microsoft, Apple, and Meta Platforms just released their first quarter results in the last 2 days. Together, they offer a glimpse into how Big Tech is navigating rising tariffs, shifting consumer behaviour, and the accelerating pace of AI innovation.
Microsoft and Meta led the way with standout performances, fuelled by strong demand for cloud services and AI infrastructure. Apple and Amazon turned in steady results, though investor reactions were more measured amid concerns over China, softer guidance, and tariff-related cost pressures.
Let’s dive into the key highlights.
Amazon (NASDAQ: AMZN) reported its Q1 results showing the slowest sales growth since the pandemic, with overall sales up 9% to $155.7 billion and profit rising 64% to $17.1 billion. The company issued cautious guidance for Q2. It expects sales to be in the range of $159 billion to $164 billion and operating income from $13 billion to $17.5 billion. The tempered outlook reflects uncertainties surrounding the impact of newly imposed U.S. tariffs, including a 145% levy on Chinese imports, which affect over half of Amazon’s product offerings.
Microsoft (NASDAQ: MSFT) reported strong earnings, with revenue topping $70 billion, a 13% increase year-over-year, and net income of $25.8 billion.. Despite the turbulent environment, Microsoft has sustained strong demand for its cloud services, working with OpenAI to solidify a position in AI commercialization through integrations within products like Office and Excel. Azure cloud services’ revenue grew by 33%, surpassing analysts’ expectations. These strong results boosted investor confidence, pushing shares up by 9% after hours.
Apple (NASDAQ: AAPL) reported a quarterly revenue of 95.4 billion, up 5% year-over-year which was just slightly above expectations. Earnings per share was 1.65. The company did well overall, but fell short in China, where sales dropped 2.3%. This was attributed to intensified competition and delayed AI feature rollouts. CEO Tim Cook announced that the majority of iPhones sold in the U.S. during the June quarter would be manufactured in India, aiming to mitigate the impact of U.S. tariffs. Apple anticipates a 900 million dollar increase in costs next quarter as a result of tariffs.
Meta Platforms (NASDAQ: META) had an impressive report for Q1. The company’s revenue was $42.3 billion, surpassing expectations. The earnings per share were $6.43, which is a 37% year-over-year increase, and above the expert estimates of $5.25. While Meta noted increasing infrastructure costs due to the tariffs, the company held its profit guidance. Meta also raised its 2025 capital expenditure forecast to a range of $64 billion to $72 billion, reflecting continued investments in AI infrastructure. After hours, share prices increased more than 4%, reflecting investors’ confidence in Meta’s ability to deal with the macroeconomic uncertainty.
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Disclosure: Joanna Sng of The Smart Investor owns shares of Meta, Apple, Microsoft, and Amazon.
