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What Lies Ahead for Mag-7 ETFs in Q3 Earnings Season?

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We are off to a strong start this third-quarter earnings season. Not only are most companies comfortably surpassing estimates, but their guidance and management commentary have also been largely reassuring. The S&P 500 index is expected to report a 6.5% uptick during the third-quarter earnings season on 6.4% higher revenues.

However, excluding the Tech sector contribution, third-quarter earnings for the rest of the S&P 500 index will likely rise only 4.2% on 7.3% higher revenues, per Earnings Trends issued on Oct. 17, 2025. This highlights the importance and the greater role of the technology sector in driving the S&P 500.

Inside Mag-7’s Exposure to the S&P 500

Note that the “Magnificent Seven” or “Mag 7” group, comprising Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOG - Free Report) , (GOOGL - Free Report) , Amazon (AMZN - Free Report) , NVIDIA (NVDA - Free Report) , Tesla (TSLA - Free Report) and Meta Platforms (META - Free Report) , is the backbone of the S&P 500’s tech exposure.

The Mag 7 stocks accounted for 24% of all S&P 500 earnings in second-quarter 2025, with the proportion expected to increase to 24.3% in third-quarter 2025. This makes it important to preview their earnings and take positions before their earnings releases. In any case, these seven are among the most-talked-about stocks on Wall Street in recent times, thanks to their massive initiatives in the ongoing AI boom.

Expected Earnings Growth Rate of the Mag-7 Group

For the Mag 7 group, third-quarter earnings are expected to rise 12.0% from the same period last year on 15.0% higher revenues, which will follow the group’s 26.4% earnings growth on 15.5% revenue growth in the preceding period.

Third-quarter earnings for the S&P 500 index are anticipated to grow 4.8% from the same period last year if the Mag 7 group’s substantial earnings contribution is excluded (versus 6.5% increase otherwise). For the Mag 7 group, total 2025 earnings are expected to increase 17.8% on 10.7% revenue growth, per Earnings Trends.

Inside Expected Surprise Predictions (ESP) of Mag-7 Earnings

Microsoft, which is expected to report results on Oct. 29, has an Earnings ESP of -1.20% and a Zacks Rank #2 (Buy). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the chances of an earnings beat.

Alphabet will likely report earnings on Oct. 29. The stock has an Earnings ESP of -6.98% and a Zacks Rank #3.

Meta Platforms, too, is expected to report on Oct. 29. The stock has an Earnings ESP of +8.48% and it sports a Zacks Rank #1 at present. 

Apple will likely report earnings on Oct. 30. The stock has an Earnings ESP of -4.29% and a Zacks Rank #3. 

Amazon, too, will likely report earnings on Oct. 30. The stock has an Earnings ESP of +21.97% and a Zacks Rank #2.

NVIDIA is expected to report earnings on Nov. 19. The stock has an Earnings ESP of +1.33% and a Zacks Rank #2.

Meanwhile, Tesla reported results on Oct. 22, 2025, after market close. Tesla’s earnings missed estimates but revenues beat the same. Tesla reported a 12% increase in Q3 revenues while net income fell 37%. Shares slumped about 4% after hours on Oct. 22.

ETFs to Tap

Except for Meta and Amazon, the other three currently have a negative Earnings ESP. NVIDIA still has a few weeks before reporting. Thus, there is still room for notable changes in its ESP. Considering all aspects, the outlook for the Mag 7 this earnings season looks moderate.

Given this, investors may want to invest in these stocks through ETFs as the basket approach minimizes the company-specific concentration risks. Below, we have highlighted some ETFs with the largest exposure to Mag 7.

Roundhill Magnificent Seven ETF (MAGS - Free Report) : It is the first-ever ETF offering investors equal-weight exposure to the Mag 7 stocks.

MicroSectors FANG+ ETN (FNGS - Free Report) : The underlying NYSE FANG+ Index is an equal-dollar weighted index, which seeks to provide exposure to a group of highly-traded growth stocks of next-generation technology and tech-enabled companies. MicroSectors FANG+ ETN has a Zacks ETF Rank #3 (see: all the Technology ETFs here).

Vanguard Mega Cap Growth ETF (MGK - Free Report) : It tracks the CRSP US Mega Cap Growth Index. The in-focus Mag 7 stocks collectively account for 60% of the total assets. MGK has a Zacks ETF Rank #3.

Invesco S&P 500 Top 50 ETF (XLG - Free Report) The underlying S&P 500 Top 50 Index comprises 50 of the largest companies in the S&P 500 Index. The Mag 7 stocks collectively make up about 55% of the basket. The fund charges 20 bps in fees.

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