Summary
Big Tech proved its strength again this earnings season as Meta, Google, and Microsoft all surpassed Wall Street expectations. Meta reported revenue of $51.2 billion (+26% YoY) with heavy AI spending, Alphabet crossed the $100 billion mark (+16% YoY) thanks to strong ad and cloud growth, and Microsoft posted $77.7 billion (+18% YoY) powered by Azure and enterprise AI tools. Together, these results highlight how artificial intelligence and cloud services are driving the next stage of tech growth, even amid global economic uncertainty.
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📚 Deep Dive 📚
Big Tech Earnings Recap: Meta, Google, and Microsoft Deliver Strong Quarters Amid Heavy AI Investments
📅 October 2025 Earnings Season
Earnings season is one of the most important times in the market.
Every quarter, companies reveal how much money they made, how much they spent, and how their business is really performing — beyond all the headlines and hype. These reports show whether a company is growing, struggling, or adapting to new trends like artificial intelligence and digital advertising.
For investors, earnings can shift stock prices overnight. Strong results can spark rallies, while weak ones can send shares tumbling. That’s why traders and analysts pay close attention not only to the numbers, but also to the guidance — what companies say about the future.
This week, three of the biggest names in technology — Meta (META), Alphabet (GOOG), and Microsoft (MSFT) — released their quarterly earnings. Together, they provide a clear snapshot of how Big Tech is navigating the AI boom, higher costs, and slowing global growth.
🟦 Meta Platforms (META)
Estimate vs. Actual (Q3 2025):
- Earnings per share (adjusted): $7.25 vs. $6.69 estimated
- Revenue: $51.24 billion vs. $49.41 billion estimated
- One-time tax charge: $15.93 billion
- Stock reaction: Shares fell nearly 9% post-report
Summary:
Meta beat expectations on both revenue and profit, showing strong advertising recovery across Facebook, Instagram, and WhatsApp. However, a one-time $15.93 billion tax charge significantly reduced net income, overshadowing an otherwise solid quarter. The company continues to spend heavily on artificial intelligence infrastructure and Reality Labs — its metaverse division.
Bottom line:
Meta’s business is performing well, but investors were spooked by the tax hit and ongoing high spending. The fundamentals remain strong, yet profit volatility is a reminder that rapid innovation comes with real financial costs.
🟥 Alphabet (GOOG)
Estimate vs. Actual (Q3 2025):
- Adjusted EPS: $3.10 vs. $2.33 estimated
- Revenue: $102.35 billion vs. $99.89 billion estimated
- YouTube Ads: $10.26 billion vs. $10.01 billion estimated
- Google Cloud: $15.15 billion vs. $14.74 billion estimated
- Traffic Acquisition Costs (TAC): $14.87 billion vs. $14.82 billion estimated
Summary:
Alphabet delivered a strong quarter across all major segments, easily topping Wall Street’s expectations. YouTube ad revenue climbed, cloud services continued expanding, and the company’s focus on AI — through its Gemini model — is beginning to show up in real product improvements and efficiency gains.
Bottom line:
Google’s core business remains a money-making powerhouse, and its AI and cloud divisions are adding new growth layers. It’s one of the most balanced earnings reports of the season — steady, profitable, and forward-looking.
🟩 Microsoft (MSFT)
Estimate vs. Actual (Q1 Fiscal 2026 / Calendar Q3 2025):
- EPS: $3.72 vs. $3.30 year-ago period
- Net income: $27.7 billion vs. $24.67 billion last year
- OpenAI investment impact: $3.1 billion hit to net income (-$0.41 per share)
- Cloud and AI demand: Continued strong double-digit growth
Summary:
Microsoft posted another solid quarter, even after taking a $3.1 billion charge tied to its massive OpenAI investment. Revenue rose across Azure, Office, and Windows as businesses continued adopting AI-powered tools. Despite the one-time accounting impact, Microsoft’s core operations remain strong and cash-flow positive.
Bottom line:
Microsoft keeps proving its consistency. Even with an investment hit on paper, its AI and cloud ecosystems are expanding rapidly — making it one of the most stable and future-focused players in tech.
🧠 What This All Means
- All three companies beat expectations, showing the continued strength of Big Tech even as the cost of AI investment rises.
- AI remains the central theme: Meta, Google, and Microsoft are all spending billions to stay ahead.
- Advertising is back: Meta and Alphabet both benefited from stronger ad demand.
- Cloud dominance: Microsoft’s Azure and Google Cloud are still major profit drivers.
- Investor sentiment: Stocks were mixed after results — excitement about AI growth met by concern over costs and tax impacts.
In summary:
- Meta: Big growth, big spending, and a one-time tax punch.
- Alphabet: Strong profits and expanding AI momentum.
- Microsoft: Reliable execution and leadership in enterprise AI.
🚀 Final Takeaway
Even with new challenges — from taxes to massive AI investments — Big Tech continues to deliver where it matters most: revenue growth, scale, and innovation.
Each of these giants is betting heavily on AI to define the next decade, and so far, the numbers show those bets are beginning to pay off.
Bottom line:
The Big Three are still leading the digital economy — adapting, expanding, and proving that innovation remains their strongest asset.
📋 Comparison Table
| Company | Revenue | EPS / Adjusted EPS | Key Notes | YoY Change | Beat vs Estimate |
|---|---|---|---|---|---|
| Meta Platforms | $51.24 B | $7.25 (Adj.) | $15.93 B one-time tax charge | +23% | ✅ Beat on EPS & Revenue |
| Alphabet (GOOG) | $102.35 B | $3.10 (Adj.) | YouTube + Cloud growth; TAC inline | +16% | ✅ Beat across the board |
| Microsoft (MSFT) | $77.7 B | $3.72 | $3.1 B OpenAI investment impact | +18% | ✅ Strong results despite charge |
Sources:
- CNBC: Meta Q3 2025 Earnings, Alphabet Q3 2025 Earnings, Microsoft Q1 FY26 Earnings (all October 29, 2025)