TECH Quarterly Earnings Roundup

The first quarter of 2025 showcased resilient performance across the U.S. tech giants, with all six major names—Apple, Microsoft, Alphabet, Amazon, Meta, and Netflix—delivering earnings and revenue that exceeded expectations. A common theme was the growing contribution of artificial intelligence and advertising to revenue growth, alongside disciplined cost control and rising capital expenditures—particularly in support of AI infrastructure. While Microsoft, Alphabet, and Meta emphasized accelerating cloud and AI monetization, Apple and Netflix highlighted product innovation and subscription strength. Tariff concerns loomed large, with Amazon and Meta directly citing potential impacts from President Trump’s new trade policies, especially for Asia-based advertisers and third-party sellers. Apple and Alphabet also flagged exposure, though mitigated by supply chain diversification. Despite these macro risks, guidance remained broadly constructive, underscoring the sector’s adaptability and leadership in digital transformation.

TECH Portfolio Holdings

Apple Inc (AAPL)

Portfolio weight in TECH*: 16.50%

EPS: $1.650 reported vs Bloomberg estimate of $1.625
Revenue: $95.359B reported vs Bloomberg estimate of $94.588B

“Today Apple is reporting strong quarterly results, including double-digit growth in Services. We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon…” – Tim Cook, CEO.¹

Apple beat earnings and revenue expectations for the quarter. iPhone, Mac, and iPad sales all topped forecasts, while Services revenue, though up 11.6% year-over-year to $26.65 billion, slightly missed estimates. Wearables declined 5%, partly due to last year’s Vision Pro launch. Shares fell up to 4% after hours. CEO Tim Cook said tariffs had limited impact in the quarter due to supply chain optimization but forecast $900 million in tariff-related costs next quarter. Apple expects low- to mid-single-digit revenue growth in the coming quarter and guided gross margins around 46%. The company announced a $100 billion share buyback and raised its dividend by 4%. China revenue dipped slightly but was stable excluding FX, while Americas sales rose 8%. Cook confirmed increased sourcing from India and Vietnam. Apple delayed some AI features, including Siri upgrades, to next year, citing a need for more development time.²

Microsoft Corporation (MSFT)

Portfolio weight in TECH*: 16.50%

EPS: $3.460 reported vs Bloomberg estimate of $3.214
Revenue: $70.066B reported vs Bloomberg estimate of $68.480B

“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth. From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.” – Satya Nadella, CEO.³

Microsoft shares jumped 9% after the company reported strong quarterly results and issued upbeat guidance, driven by robust Azure and AI performance. Azure revenue rose 33%, with AI contributing 16 points, exceeding forecasts. The company guided next quarter revenue between $73.15–$74.25 billion, ahead of consensus, and expects Azure to grow 34–35%. Capital expenditures surged 53% to $16.75 billion as Microsoft ramped up AI infrastructure. Intelligent Cloud revenue rose 21% to $26.75 billion, and Productivity & Business Processes revenue increased 10% to $29.94 billion. Windows and devices sales also beat expectations. Management acknowledged potential tariff risks ahead, but investors welcomed the resilient outlook. Microsoft also noted 15 million users for GitHub Copilot and made strategic updates to its OpenAI partnership during the quarter.⁴

Alphabet Inc (GOOGL)

Portfolio weight in TECH*: 16.22%

EPS: $2.810 reported vs Bloomberg estimate of $2.007
Revenue: $76.486B reported vs Bloomberg estimate of $75.398B

“We’re pleased with our strong Q1 results, which reflect healthy growth and momentum across the business. Underpinning this growth is our unique full stack approach to AI. This quarter was super exciting as we rolled out Gemini 2.5, our most intelligent AI model, which is achieving breakthroughs in performance and is an extraordinary foundation for our future innovation…” – Sundar Pichai, CEO.⁵

Alphabet reported strong Q1 results, beating expectations. Shares rose over 5% after hours. Net income surged 46% to $34.5 billion. Core ad revenue climbed 8.5% to $66.89 billion, with search-related revenue up nearly 10%. YouTube ads and Google Cloud revenue slightly missed forecasts, though Cloud grew 28% year-over-year with improving margins. AI remains a focus, with Alphabet’s AI Overviews now reaching 1.5 billion users monthly. Alphabet’s $32 billion acquisition of cloud security firm Wiz aims to strengthen multicloud offerings. “Other Bets” revenue declined, though Waymo now provides 250,000 paid autonomous rides weekly. Capital spending is expected to reach $75 billion in 2025, and Alphabet authorized a $70 billion share repurchase, matching last year’s buyback.⁶

Amazon.com Inc (AMZN)

Portfolio weight in TECH*: 16.40%

EPS: $1.590 reported vs Bloomberg estimate of $1.358
Revenue: $155.667B reported vs Bloomberg estimate of $155.160B

“We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences. From Alexa+ (our next generation of Alexa that’s meaningfully smarter, more capable, and takes actions for customers), to another delivery speed record for our Prime members, to our new Trainium2 chips and Bedrock model expansion that make it easier for AWS customers to train models and run inference more flexibly and cost-effectively, to our first Project Kuiper satellites successfully launching into low earth orbit in our quest to provide broadband access to hundreds of millions of households in rural areas without it today—we’re continuing to find meaningful ways to make customers’ lives easier and better every day.” – Andy Jassy, CEO.⁷

Amazon beat Q1, but shares fell over 2% in extended trading due to cautious Q2 guidance. The company expects $159–$164 billion in Q2 sales and $13–$17.5 billion in operating income, both below analyst estimates. Amazon cited uncertainty from President Trump’s new tariffs and recession fears as key risks. Tariffs are a major concern for Amazon’s retail and third-party seller business, with many products sourced from China, now subject to steep import levies. CEO Andy Jassy said Amazon’s diverse seller base may limit the consumer impact, and noted the company’s resilience during past disruptions like COVID. AWS revenue slightly missed forecasts, growing 17%—its third consecutive miss. Advertising was a standout, rising 19% year-over-year to $13.92 billion. Net income climbed to $17.13 billion from $10.43 billion last year, supported by cost-cutting and greater logistics efficiency.⁸

Meta Platforms (META)

Portfolio weight in TECH*: 16.76%

EPS: $6.430 reported vs Bloomberg estimate of $5.249
Revenue: $42.314B reported vs Bloomberg estimate of $41.375B

“We’ve had a strong start to an important year, our community continues to grow and our business is performing very well. We’re making good progress on AI glasses and Meta AI, which now has almost 1 billion monthly actives.” – Mark Zuckerberg, CEO.⁹

Meta reported strong Q1 results. Shares rose up to 5% after hours. Net income surged 35% to $16.64 billion, driven by robust ad revenue, which reached $41.39 billion. Q2 guidance of $42.5–$45.5 billion matched expectations, though Meta noted some softening ad spend from Asia-based e-commerce exporters, likely tied to the looming end of the U.S. de minimis tariff exemption. Capital expenditures were raised to $64–$72 billion for 2025 to support AI infrastructure. The company flagged potential European revenue pressure from regulatory pushback on its no-ads subscription model. Reality Labs posted a $4.2 billion loss, while Meta AI usage reached nearly 1 billion monthly users, and Threads hit 350 million. Despite strong user growth, monetization of Threads and Meta AI is not expected in 2025. Meta trimmed its expense forecast slightly and continues to navigate global regulatory and trade uncertainty.¹⁰

Netflix Inc (NFLX)

Portfolio weight in TECH*: 17.58%

EPS: $6.610 reported vs Bloomberg estimate of $5.684
Revenue: $10.543B reported vs Bloomberg estimate of $10.496B

Netflix delivered a strong Q1 2025 earnings beat. Revenue rose 13% year over year, driven by higher-than-expected subscription and advertising revenue, supported by price hikes rolled out in January. For the first time, Netflix did not report quarterly subscriber numbers, shifting its focus to revenue and financial metrics. Net income reached $2.89 billion, up from $2.33 billion a year earlier. Despite market volatility from President Trump’s trade policy, Netflix reaffirmed its full-year revenue outlook of $43.5–$44.5 billion and noted no material tariff impact on its business. Co-CEO Greg Peters said entertainment spending tends to be resilient in downturns, and Netflix has historically held up well. The company emphasized advertising as a key growth pillar, launching its own ad tech platform in the U.S. with plans to expand globally.¹¹

Sources:

*Portfolio weights as at April 30, 2025.

DISCLAIMER

Published May 20, 2025.

Evolve Funds Group Inc. is the investment fund manager and portfolio manager. The Evolve FANGMA Index ETF (“TECH”) is offered by Evolve Funds Group Inc., and distributed through authorized dealers.

The information contained herein is a general description and is not intended to be specific investment advice to any particular investor nor intended to be investment or tax advice. You should not act or rely on the information contained herein without seeking the advice of an appropriate professional advisor. The information contained herein is intended for informational purposes as a summary only, does not constitute an offer to sell any securities or a legally binding obligation, it is qualified entirely by, and should be read in conjunction with, the more detailed information appearing in the prospectuses found on the Evolve Funds Group Inc website at https://evolveetfs.com/

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