The Tech sector’s 2025 Q4 earnings results have been strong, but recent stock market underperformance is linked to rising capex budgets from major companies like Amazon, Meta, and Alphabet. Investors are also concerned about legacy software profitability in the AI era. Despite this, the sector remains well positioned for growth.

In the 2025 Q4 earnings season, 75.7% of S&P 500 companies have beaten EPS estimates, with total earnings up +13% and revenues up +8.9% from last year. The Tech sector continues to be a key growth driver. Analysts are optimistic about future performance based on current results and outlook for coming quarters.

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