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The market loved the Amazon and Alphabet results, was unimpressed by Microsoft numbers, and didn’t like Meta’s report. With Apple and Tesla results already in, we now have Q3 results from 6 members of the ‘Magnificent 7’ group.
The aggregate growth numbers for the group are impressive, with Q3 earnings on track to be up +26.7% from the same period last year on +17.6% higher revenues, which would follow the group’s +26.4% earnings growth on +15.5% revenue growth. Not all members of the elite group are equally contributing to the growth pace, ranging from Tesla’s -39.5% earnings decline in Q3 and Alphabet’s +33% jump.
Market participants appear to have found their peace with these companies’ ever-rising capex plans, particularly if management teams can show some tangible gain in their results. We saw that with Amazon and Alphabet, with both showing accelerating gains in their respective cloud businesses.
Microsoft had strong cloud revenue growth, up +26% from the same period last year and reflecting a modest downtick from the preceding period’s +27% growth pace. Guidance for the December quarter shows further growth deceleration, even though the period will have a relatively easier year-earlier comparison. Unlike this cloud deceleration, management indicated an accelerating capex spending trend in fiscal year 2026, which should help address the capacity issue that has been the primary driver of decelerating cloud revenue growth.
Unlike Amazon, Microsoft, and Alphabet, Meta can’t point to a specific business unit whose revenues are accelerating as a result of the spending growth. Market participants were disappointed with management’s raised guidance for 2026 capex and operating expenses, coupled with almost in-line revenue guidance for the December quarter.
Please note that the Mag 7 group is on track to bring in 24.9% of all S&P 500 earnings in 2025, up from 23.2% of the total in 2024 and 18.3% in 2023. Regarding market capitalization, the Mag 7 group currently carries a 35.4% weight in the index. If this group of mega-cap companies was a stand-alone sector, it would be the second biggest in the S&P 500 index, just behind the Technology sector at 45% and above the Finance sector at 12.6%.
Q3 Earnings Season Scorecard
Including all reports released through Friday, October 31st, we now have Q3 results from 318 S&P 500 members, or 63.6% of the index’s total membership. Total earnings for these companies are up +13.9% from the same period last year on +8.4% higher revenues, with 84.3% beating EPS estimates and 76.7% beating revenue estimates.
For the Tech sector, we now have Q3 results for 62.1% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Tech companies are up +22.6% from the same period last year on +12.6% higher revenues, with 95.1% beating EPS estimates and 85.4% beating revenue estimates.
The Earnings Big Picture
Please note that the +11.5% earnings growth rate for Q3 shown above represents the blended growth rate for the quarter, which combines the actual results for the 318 companies that have reported with estimates for the still-to-come companies.
In terms of S&P 500 index ‘EPS’, these growth rates approximate to $258.80 for 2025 and $291.46 for 2026.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Amazon, Alphabet, Microsoft, Meta's Apple and Tesla part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – November 3, 2025 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) , Meta’s (META - Free Report) report. With Apple (AAPL - Free Report) and Tesla (TSLA - Free Report) .
The Enormous Earnings Power of the Mag 7 Group
The market loved the Amazon and Alphabet results, was unimpressed by Microsoft numbers, and didn’t like Meta’s report. With Apple and Tesla results already in, we now have Q3 results from 6 members of the ‘Magnificent 7’ group.
The aggregate growth numbers for the group are impressive, with Q3 earnings on track to be up +26.7% from the same period last year on +17.6% higher revenues, which would follow the group’s +26.4% earnings growth on +15.5% revenue growth. Not all members of the elite group are equally contributing to the growth pace, ranging from Tesla’s -39.5% earnings decline in Q3 and Alphabet’s +33% jump.
Market participants appear to have found their peace with these companies’ ever-rising capex plans, particularly if management teams can show some tangible gain in their results. We saw that with Amazon and Alphabet, with both showing accelerating gains in their respective cloud businesses.
Microsoft had strong cloud revenue growth, up +26% from the same period last year and reflecting a modest downtick from the preceding period’s +27% growth pace. Guidance for the December quarter shows further growth deceleration, even though the period will have a relatively easier year-earlier comparison. Unlike this cloud deceleration, management indicated an accelerating capex spending trend in fiscal year 2026, which should help address the capacity issue that has been the primary driver of decelerating cloud revenue growth.
Unlike Amazon, Microsoft, and Alphabet, Meta can’t point to a specific business unit whose revenues are accelerating as a result of the spending growth. Market participants were disappointed with management’s raised guidance for 2026 capex and operating expenses, coupled with almost in-line revenue guidance for the December quarter.
Please note that the Mag 7 group is on track to bring in 24.9% of all S&P 500 earnings in 2025, up from 23.2% of the total in 2024 and 18.3% in 2023. Regarding market capitalization, the Mag 7 group currently carries a 35.4% weight in the index. If this group of mega-cap companies was a stand-alone sector, it would be the second biggest in the S&P 500 index, just behind the Technology sector at 45% and above the Finance sector at 12.6%.
Q3 Earnings Season Scorecard
Including all reports released through Friday, October 31st, we now have Q3 results from 318 S&P 500 members, or 63.6% of the index’s total membership. Total earnings for these companies are up +13.9% from the same period last year on +8.4% higher revenues, with 84.3% beating EPS estimates and 76.7% beating revenue estimates.
For the Tech sector, we now have Q3 results for 62.1% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Tech companies are up +22.6% from the same period last year on +12.6% higher revenues, with 95.1% beating EPS estimates and 85.4% beating revenue estimates.
The Earnings Big Picture
Please note that the +11.5% earnings growth rate for Q3 shown above represents the blended growth rate for the quarter, which combines the actual results for the 318 companies that have reported with estimates for the still-to-come companies.
In terms of S&P 500 index ‘EPS’, these growth rates approximate to $258.80 for 2025 and $291.46 for 2026.
For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>>Positive Picture Emerging from Q3 Earnings Season
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.