As of April 25, Netflix, Tesla, and Alphabet have released their Q1 2025 earnings, each showing distinct performances but all posting share price gains post-earnings.
According to FactSet, the blended earnings growth rate for the S&P 500 in Q1 2025 is projected to be 7.2%. The top five contributors to this growth are Bristol-Myers Squibb, Nvidia, Gilead Sciences, Amazon, and Broadcom. The “Magnificent Seven” tech giants are expected to post a collective 14.8% earnings growth year-over-year. Excluding these seven, the remaining 493 S&P 500 companies are expected to grow earnings by just 5.1%.
Microsoft, Meta, Apple, and Amazon are scheduled to report Q1 earnings this week. Forward-looking guidance and commentary from company management will be critical this earnings season.
Microsoft:
Tiger Trade APP shows analysts expect Microsoft’s Q1 revenue to increase 10.64% YoY to $68.44 billion, with earnings per share (EPS) projected at $3.22.
Investors will be paying close attention to Microsoft’s return on investment in AI. Morgan Stanley forecasts that AI-related capital expenditure will continue to rise, potentially weighing on short-term profits. Azure cloud services are expected to grow 32% YoY—flat compared to last quarter—but growth may face short-term constraints due to data center capacity limits. Amid broader macroeconomic uncertainty, there’s concern that enterprises may delay large software purchases. Whether Microsoft adjusts its capital spending in response to economic headwinds will be closely watched, as will its forward guidance.
Meta:
According to Tiger Trade APP, analysts expect Meta’s Q1 revenue to grow 13.53% YoY to $41.39 billion, with EPS of $5.28.
The key focus will be on AI investment payoffs, the impact of U.S. tariffs on Chinese advertisers, and broader e-commerce advertiser sentiment. Meta has previously guided for 2025 capital expenditures to range between $60 billion and $65 billion. Investors will be looking for clarity on whether Meta plans to revise this guidance, particularly in light of ongoing cost control initiatives. Meta's continued margin discipline and AI monetization are also top of mind for analysts.
Apple:
Tiger Trade APP shows Apple’s Q1 revenue is expected to grow nearly 4% YoY to $94.3 billion, with EPS around $1.62.
About 90% of iPhones are assembled in China, exposing Apple to considerable tariff risks. Evercore analysts estimate a 16% effective tariff rate could increase Apple’s annual costs by $9–10 billion, potentially reducing EPS by $0.51—or roughly 7% of full-year earnings. If Apple passes these costs to consumers, iPhone prices could rise by 30–43%, potentially dampening demand.
Despite relatively strong Q1 projections, analysts remain cautious about Apple’s performance in the coming quarters. Sluggish iPhone sales, supply chain pressure, and delays in AI innovation (including postponed Siri upgrades) weigh on sentiment. Any forward-looking guidance on tariffs or demand will be critical in the earnings call.
Amazon:
Tiger Trade APP shows Amazon to report Q1 revenue of $154.9 billion, up 8% YoY—slightly slower than the 13% growth seen in the same quarter last year. EPS is forecast at $1.36.
Roughly 60% of Amazon’s cost of goods sold in e-commerce relies on imports, with 30% sourced from China. The new U.S. tariff measures could raise Q2 procurement costs, and Amazon may book additional provisions in Q1 to prepare for this impact. In the longer term, the company’s strategy of regionalizing its supply chain—particularly by expanding warehousing in Southeast Asia—may weigh on margins. Amazon has committed to investing $100 billion in AI research in 2025, which could weigh on short-term free cash flow. Any guidance on how the company plans to balance growth, innovation, and cost control will be pivotal for sentiment.