From Nasdaq: 2025-02-05 19:15:00

Total earnings for S&P 500 companies are up +11.6% from last year, with 80.0% beating EPS estimates. Tech companies saw earnings increase +23.2% from last year, with 88.9% beating EPS estimates. Alphabet, Meta, and Microsoft continue aggressive AI-focused spending. Mag 7 earnings expected to rise +26.1% in Q4.

Alphabet, Microsoft, and Meta maintain high spending on AI infrastructure despite market disappointment. Alphabet’s Q4 earnings rose +28.3% to $26.5 billion, Microsoft’s earnings increased +10.2% to $24.1 billion, Meta’s earnings grew +48.7% to $20.8 billion. These companies aim to dominate the AI world for sustained profitability.

Tech sector’s Q4 earnings expected to rise +23.3% from last year, marking the 6th consecutive quarter of double-digit growth. Earnings growth trajectory in the Tech sector is expected to continue in future quarters. Tech sector is showing a steady improvement in earnings outlook for Q4 and full year 2025.

S&P 500 earnings for 2025 Q1 projected to increase 8.8% from last year, with revenues up +4.4%. Estimates for the quarter have decreased since it began. Revision trends indicate a broad-based decline in earnings estimates for most sectors except Medical. Double-digit earnings growth expected for all 16 Zacks sectors in 2025.



Read more at Nasdaq:: Mag 7 Members Report Strong Earnings, Double Down on CapEx