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Q2 2025 Roundup for Evolve FANGMA Index ETF

August 7, 2025

Tech giants delivered a standout earnings season, with all six companies beating expectations on both revenue and profit. A clear theme was the continued AI push, as firms deepened their long-running investments in artificial intelligence to drive growth, efficiency, and product innovation. Microsoft, Alphabet, Meta, and Amazon all highlighted growing AI infrastructure spend and cloud momentum, while Apple and Netflix focused on integrating AI across user-facing services. Revenue growth was strong across the board—with advertising, cloud, and subscription businesses all contributing. Capital expenditures surged, free cash flow jumped, and margins expanded at several firms, even as some (like Amazon) offered more cautious near-term guidance. Management commentary struck a confident tone, with most CEOs emphasizing AI’s role as a transformative force across industries. Despite some mixed stock reactions, Big Tech is showing no signs of slowing down—doubling down on AI to fuel the next wave of scale and profitability.

TECH Portfolio Holdings

Meta Platforms (META)

Portfolio weight in TECH*: 17.89%

  • EPS: $7.140 reported vs Bloomberg estimate of $5.887
  • Revenue: $47.516B reported vs Bloomberg estimate of $44.832B

“We’ve had a strong quarter both in terms of our business and community, I’m excited to build personal superintelligence for everyone in the world.” – Mark Zuckerberg, CEO1

Meta crushed expectations in Q2, with earnings of $7.14 per share on $47.52 billion in revenue, both well above estimates, sending shares soaring over 10%. Ad revenue hit $46.56 billion, driven by AI-enhanced efficiency, while daily active users across its apps climbed to 3.48 billion. The company raised its Q3 revenue forecast and bumped up 2025 expense guidance, now topping out at $118 billion. Meta is doubling down on AI, investing $15.1 billion—including a major stake in Scale AI—and unveiling plans for “personal superintelligence” to empower users beyond just automation. Reality Labs remained a drag with a $4.53 billion loss, but Meta’s broader vision and strong top-line growth have investors excited for what’s next.2

Alphabet Inc (GOOGL)

Portfolio weight in TECH*: 16.90%

  • EPS: $2.310 reported vs Bloomberg estimate of $2.177
  • Revenue: $81.723B reported vs Bloomberg estimate of $79.599B

“We had a standout quarter, with robust growth across the company. We are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum. Search delivered double-digit revenue growth, and our new features, like AI Overviews and AI Mode, are performing well…” – Sundar Pichai, CEO3

Alphabet topped expectations in Q2 with impressive revenue and earnings, boosted by strong performances in search, YouTube, and cloud. Cloud revenue jumped 32% to $13.62 billion, aided by a new partnership with OpenAI to support ChatGPT on Google’s infrastructure. YouTube pulled in $9.8 billion, while overall ad revenue rose to $71.34 billion. Net income climbed nearly 20% to $28.2 billion, but the big headline was Alphabet’s AI-fueled capex plans—now expected to hit $85 billion in 2025, up $10B from previous guidance, with even more coming in 2026. The Gemini chatbot hit 450 million users, and AI Overviews now reaches 2 billion monthly users. Alphabet’s Other Bets lost $1.25 billion, but its moonshots are overshadowed by surging AI momentum. Despite a $1.4 billion legal charge, investors liked what they saw—shares rose 3% after hours as Alphabet doubled down on AI dominance.4

Microsoft Corporation (MSFT)

Portfolio weight in TECH*: 16.90%

  • EPS: $3.650 reported vs Bloomberg estimate of $3.373
  • Revenue: $76.441B reported vs Bloomberg estimate of $73.893B

“Cloud and AI is the driving force of business transformation across every industry and sector…We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.” – Satya Nadella, Microsoft CEO5

Microsoft blew past expectations, posting $3.65 EPS on $76.44 billion in revenue—its fastest growth in over three years—and sending shares soaring 9% after hours. Azure stole the show with 39% growth and, for the first time, Microsoft disclosed its full-year Azure revenue: $75 billion, up 34% from last year. Capital expenditures surged to $24.2 billion in Q4 and are expected to top $120 billion in fiscal 2026, highlighting Microsoft’s aggressive AI infrastructure push. Copilot products continue gaining traction, now reaching 100 million monthly users and boosting Office revenue per user. The cloud and productivity divisions led the charge, while More Personal Computing also outperformed, driven by a rebound in PC shipments. Despite data center bottlenecks and $1.71 billion in other expenses—including OpenAI-related losses—Microsoft’s cloud dominance and AI monetization strategy remain in full swing as it enters the new fiscal year with confidence and scale.6

Amazon.com Inc (AMZN)

Portfolio weight in TECH*: 16.80%

  • EPS: $1.680 reported vs Bloomberg estimate of $1.320
  • Revenue: $167.702B reported vs Bloomberg estimate of $162.146B

“…Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth, and I’m excited for what lies ahead.” – Andy Jassy, CEO7

Amazon posted a strong Q2, with earnings of $1.68 per share on $167.7 billion in revenue—both above expectations—but shares tumbled over 7% after the company issued soft guidance for Q3 operating income. While sales rose 13% year over year, investors were rattled by projected operating income of $15.5B–$20.5B, falling short of the $19.5B consensus midpoint. CEO Andy Jassy tried to calm concerns over intensifying cloud and AI competition, reaffirming AWS’s leadership and optimism in its $100B AI investment push. AWS grew 18% year over year, but lagged Microsoft and Google’s faster-growing cloud units. Bright spots included a booming ad business, up 23% to $15.7B, and stronger-than-expected results in online stores and seller services. Still, Amazon’s cautious tone on macro risks, tariffs, and cloud growth left investors wary. Despite robust top-line momentum and expanding AI ambitions, the market clearly wanted more near-term confidence on profitability.8

Apple Inc (AAPL)

Portfolio weight in TECH*: 16.01%

  • EPS: $1.570 reported vs Bloomberg estimate of $1.433
  • Revenue: $94.036B reported vs Bloomberg estimate of $89.303B

“Today Apple is proud to report a June quarter revenue record with double-digit growth in iPhone, Mac and Services and growth around the world, in every geographic segment…” – Tim Cook, Apple CEO9

Apple delivered its strongest quarter in years, beating expectations with $1.57 EPS on $94.04 billion in revenue—its fastest growth since 2021. iPhone sales soared 13% to $44.58 billion, driven by strong demand for the new iPhone 16, while Mac sales surged nearly 15% on the back of updated MacBook Airs. Services revenue grew 13% to $27.42 billion, powered by iCloud and App Store gains. Despite softness in iPads and wearables, investors cheered Apple’s guidance for continued revenue and margin strength in the September quarter. Tariff costs remained manageable, and Cook attributed 1% of revenue growth to early buying ahead of trade risks. Apple also saw a rebound in China, with 4% sales growth. CEO Tim Cook emphasized growing AI investment, saying Apple is embedding AI across its ecosystem and has already acquired around seven companies this year. With $133 billion in cash and strong product momentum, Apple’s still firing on all cylinders.10

Netflix Inc (NFLX)

Portfolio weight in TECH*: 15.50%

  • EPS: $7.190 reported vs Bloomberg estimate of $7.071
  • Revenue: $11.079B reported vs Bloomberg estimate of 11.062B

Netflix delivered another strong quarter, with earnings of $7.19 per share and $11.08 billion in revenue, both slightly topping expectations. Revenue surged 16% year over year, fueled by subscriber growth, price hikes, and a boost in ad sales. The company raised its full-year revenue outlook to as high as $45.2 billion and bumped up free cash flow guidance to $8–8.5 billion. Operating margin improved to 34.1%, though Netflix warned it will dip in the second half due to higher content and marketing costs tied to a packed release slate. While shares dipped 1% after hours, investor sentiment remains upbeat as cash generation soars—operating cash flow doubled and free cash flow jumped 91% year over year. With major releases like Stranger Things and Wednesday returning soon, Netflix is leaning into its content machine while keeping profitability front and center—even if subscriber updates are now a thing of the past.11

Sources:

  1. https://investor.atmeta.com/investor-news/press-release-details/2025/Meta-Reports-Second-Quarter-2025-Results/default.aspx (July 30, 2025)
  2. https://www.cnbc.com/2025/07/30/meta-q2-earnings-report-2025.html (July 30, 2025)
  3. https://abc.xyz/assets/cc/27/3ada14014efbadd7a58472f1f3f4/2025q2-alphabet-earnings-release.pdf (July 23, 2025)
  4. https://www.cnbc.com/2025/07/23/alphabet-google-q2-earnings.html (July 23, 2025)
  5. https://www.microsoft.com/en-us/investor/earnings/fy-2025-q4/press-release-webcast (July 30, 2025)
  6. https://www.cnbc.com/2025/07/30/microsoft-msft-q4-earnings-report-2025.html (July 30, 2025)
  7. https://ir.aboutamazon.com/news-release/news-release-details/2025/Amazon-com-Announces-Second-Quarter-Results/ (July 31, 2025)
  8. https://www.cnbc.com/2025/07/31/amazon-amzn-q2-earnings-report-2025.html (July 31, 2025)
  9. https://www.apple.com/newsroom/2025/07/apple-reports-third-quarter-results/ (July 31, 2025)
  10. https://www.cnbc.com/2025/07/31/apple-aapl-q3-earnings-report-2025.html (July 31, 2025)
  11. https://www.cnbc.com/2025/07/17/netflix-nflx-earnings-q2-2025.html (July 17, 2025)

*Portfolio weights as at July 31, 2025.

Source for estimated and reported EPS and Revenue data: Bloomberg, as at August 5, 2025. Figures in USD.

Source: Getty Images Credit: Blue Planet Studio

DISCLAIMER

Published August 07, 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.

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