Q3 2025 Earnings Roundup for MAG7
The seven U.S. technology powerhouses known as the “MAG7” — Microsoft, Apple, Alphabet (Google), Meta (Facebook), Amazon, Nvidia, and Tesla — have released their results for the third quarter of 2025, covering the July to September period. The group’s performance continues to define the direction of both the tech sector and the broader equity market.
Most of the reports arrived this week, with Alphabet and Meta drawing particular attention for their scale and growth, while Tesla reported last week. Together, these results capture the dominant themes of 2025: the accelerating integration of artificial intelligence across business lines, strong demand for cloud infrastructure, steady digital-advertising recovery, and selective consumer resilience despite global economic uncertainty.
Apple ($AAPL) – Q3 2025 (Fiscal Q4) Highlights
Apple posted record September-quarter results, delivering its highest fiscal-Q4 revenue in company history. Total revenue reached $102.5 billion, up 8% year-over-year, reflecting broad-based growth across its hardware and services ecosystem.
Earnings per diluted share were $1.85, up around 13% year-over-year on an adjusted basis. Apple noted that last year’s quarter included a one-time tax item, inflating the apparent GAAP increase.
Segment performance:
- iPhone revenue rose 6% to $49.0 billion, setting a new record for the September quarter thanks to strong demand for the iPhone 17 lineup.
- Services revenue climbed 15% to an all-time high of $28.8 billion, driven by the App Store, Apple Music, iCloud, and other subscriptions.
- Mac revenue increased to $8.73 billion (from $7.74 billion a year ago), while iPad was $6.95 billion (roughly flat) and Wearables, Home & Accessories brought in $9.01 billion (also flat).
Apple closed the year with record services profitability and steady device momentum, underscoring the resilience of its integrated hardware-plus-subscription model heading into fiscal 2026.
Amazon ($AMZN) – Q3 2025 Highlights
Amazon reported another solid quarter of expansion, with net sales of $180.2 billion, up 13% year-over-year (12% in constant currency). Growth was broad across e-commerce, cloud, and advertising.
Segment results:
- North America sales rose 11% to $106.3 billion.
- International sales increased 14% to $40.9 billion (10% in constant currency).
- Amazon Web Services (AWS) revenue surged 20% to $33.0 billion, regaining momentum as enterprises expanded cloud and AI workloads.
Net income reached $21.2 billion ($1.95 per share) versus $15.3 billion ($1.43 per share) a year ago — a 39% increase partly boosted by a $9.5 billion valuation gain on its Anthropic investment. Advertising revenue advanced 24% to $17.7 billion, reflecting robust demand across Amazon’s e-commerce and streaming platforms.
Operating income was $17.4 billion, roughly flat year-over-year after a $2.5 billion FTC settlement and $1.8 billion in severance costs. Excluding these items, adjusted operating income would have been about $21.7 billion, signaling margin expansion.
Amazon reported record Prime engagement and rapid logistics improvements ahead of the holidays. Overall, Q3 showed balanced strength across its retail, cloud, and advertising engines — reinforcing its diversified growth trajectory into year-end.
Alphabet ($GOOG) – Q3 2025 Highlights
Alphabet delivered its first-ever $100 billion-plus quarter, underscoring robust performance across search, cloud, and YouTube.
Financials:
- Revenue was $102.3 billion, up 16% year-over-year (15% constant currency).
- Net income rose 33% to $34.98 billion, with diluted EPS of $2.87 (up 35% from $2.12).
- Operating income totaled $31.2 billion (30.5% margin). Excluding a $3.5 billion European Commission fine, operating income would have grown 22% YoY with an adjusted margin near 34%.
Segment performance:
- Google Services (Search, YouTube, Android/Play, hardware) generated $87.1 billion, up 14%.
- Google Cloud revenue jumped 34% to $15.2 billion and produced $3.6 billion in operating income, confirming sustained profitability.
- Other Bets revenue was $344 million (vs. $388 million a year ago).
Alphabet also recorded $12.8 billion in other income from investment gains. CEO Sundar Pichai called it “our first $100 billion quarter,” citing AI and infrastructure investment as key drivers of growth.
Meta Platforms ($META) – Q3 2025 Highlights
Meta Platforms achieved another quarter of strong revenue growth despite a large tax charge that impacted reported earnings.
Financials:
- Revenue was $51.24 billion, up 26% year-over-year (25% constant currency), led by digital advertising.
- Advertising revenue totaled $50.08 billion (up 26%).
- Total costs and expenses rose 32% to $30.71 billion due to AI and Reality Labs investment.
- Operating income grew 18% to $20.54 billion with a 40% margin (vs. 43% a year ago).
GAAP net income was $2.71 billion ($1.05 EPS), down 83% year-over-year because of a $15.93 billion non-cash tax charge tied to U.S. tax-law changes. Excluding that, net income would have been $18.64 billion and EPS $7.25.
User and segment metrics: Family daily active people across Facebook, Instagram, WhatsApp, and Messenger reached 3.54 billion (+8% YoY). Ad impressions rose 14%, average price per ad +10%. The Family of Apps segment generated $50.77 billion in revenue and $24.97 billion in operating income, while Reality Labs revenue jumped 74% to $470 million but posted a $4.43 billion loss.
Capital expenditures totaled $19.37 billion for AI and data-center expansion, with $4.5 billion returned to shareholders. CEO Mark Zuckerberg described it as “a strong quarter for our business and our community,” highlighting AI-powered products and hardware progress.
Microsoft ($MSFT) – Q3 2025 (Fiscal Q1 2026) Highlights
Microsoft’s July–September quarter showed accelerating growth fueled by demand for cloud and AI solutions. Revenue rose 18% to $77.7 billion — one of its fastest growth rates in recent years.
Operating income climbed 24% to $38.0 billion (49% margin). GAAP net income was $27.7 billion (+12%), and EPS $3.72 (+13%). Excluding losses linked to its OpenAI stake, adjusted net income was $30.8 billion and EPS $4.13 (up 22% and 23%), reflecting strong core profitability.
Business segments:
- Microsoft Cloud revenue grew 26% to $49.1 billion, with Azure up 40%.
- Productivity & Business Processes (Office, LinkedIn, Dynamics) rose 17% to $33.0 billion.
- Intelligent Cloud increased 28% to $30.9 billion.
- More Personal Computing added 4% to $13.8 billion as the PC market stabilized.
Microsoft returned $10.7 billion to shareholders and called the quarter “a strong start to fiscal 2026,” underscoring continued cloud and AI monetization momentum.
Tesla ($TSLA) – Q3 2025 Highlights
Tesla delivered record revenue and vehicle deliveries but faced margin compression from pricing and cost pressures. Total revenue rose 12% year-over-year to $28.1 billion, its highest ever, driven by 497,000 vehicle deliveries (+27% YoY).
Segment results:
- Automotive revenue was $21.2 billion (+6%), as price reductions offset volume gains.
- Energy Generation & Storage rose 44% to $3.4 billion with record 12.5 GWh deployments.
- Services & Other added 25% to $3.5 billion.
Operating income fell 40% to $1.6 billion (5.8% margin vs. 10.8% a year ago). GAAP net income declined 37% to $1.37 billion ($0.39 per share), while adjusted EPS was $0.50. Tesla attributed the decline to higher operating costs, lower regulatory-credit revenue, and new-model launch expenses including the Cybertruck.
Cash generation remained robust: operating cash flow $6.2 billion and free cash flow nearly $4 billion, lifting cash and investments to $41.6 billion. Tesla highlighted progress in energy storage, vehicle ramp-ups, and robotaxi testing, emphasizing long-term AI and automation focus despite short-term margin pressure.
Nvidia ($NVDA) – Q3 2025 (Fiscal Q2 2026) Highlights
Nvidia’s most recent quarter (May–July 2025) reflected extraordinary momentum from the global AI investment surge. Revenue soared 56% year-over-year to $46.7 billion — another all-time high — with data centers driving nearly all of the growth.
Results:
- Data Center revenue reached $41.1 billion (≈ 90% of total), up strongly on AI chip demand.
- Gaming brought in $4.3 billion, stable year-over-year.
- GAAP net income was $26.4 billion (+59%), and EPS $1.08 (+61%). Non-GAAP EPS was $1.05 (+54%).
- Operating income rose 53% to $28.4 billion; gross margin expanded to 72.4%.
Nvidia said demand for its next-generation “Blackwell” chips continues to outstrip supply, with data-center sales up 17% sequentially. The company returned $24.3 billion to shareholders in the first half of fiscal 2026 and authorized an additional $60 billion in buybacks, signaling confidence in ongoing AI-driven growth.
Overall, Q3 2025 for the MAG7 demonstrated the continued dominance of large-cap U.S. tech in profitability and AI adoption. While macro pressures and regulatory costs persist, the group’s combined results reinforce its central role in global innovation and market leadership heading into 2026.
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. BBAE has no position in any investment mentioned.
