Massive Tech corporations Meta, Microsoft, and Google posted stronger-than-expected earnings to start out the yr, whereas Amazon and Apple, of their earnings studies, warned that tariffs may weigh on their companies.
The outcomes have been carefully watched as analysts had flagged early indicators that some tech giants could also be scaling again their knowledge centre expansions. Nonetheless, jittery buyers could be reassured to know that the momentum behind AI spending continued within the first quarter of 2025. That stated, the image just isn’t precisely clear, as Microsoft reported a slight dip in its capital expenditures (capex).
The financial uncertainty sparked by US President Donald Trump’s commerce battle, together with 145 per cent tariffs on China, has additionally left some tech CEOs to be extra cautious about the remainder of the yr.
Meta
Meta inventory climbed 4.2 per cent in prolonged buying and selling on Wednesday, April 30, after the corporate reported monetary outcomes for Q1 FY2025.
The corporate’s capex for the quarter ended March 31, was $13.69 billion, down from $14.84 billion from the earlier quarter. Nonetheless, Meta elevated its projected capital bills for 2025 to between $64-$72 billion. Initially, the corporate had stated it plans to spend as a lot as $65 billion this yr.
The rise to the capex forecast displays Meta’s resolution to quickly put together knowledge centre capability to assist its AI efforts. The potential influence of tariffs on the price of {hardware} exports was additionally stated to be an element within the resolution, based on Susan Li, Meta’s chief monetary officer.
The elevated outlays may assist allay considerations amongst buyers about waning curiosity in AI. These considerations had emerged in March this yr, after analysts had identified that massive tech corporations like Microsoft could be holding again on investing in new knowledge centres.
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“The tempo of progress throughout the business and the alternatives forward for us are staggering. I need to guarantee that we’re working aggressively and effectively, and I additionally need to guarantee that we’re constructing out the main infrastructure and groups,” Meta CEO Mark Zuckerberg informed buyers on the earnings name.
He additionally revealed that just about one billion individuals are utilizing Meta’s AI assistant every day. The corporate had reported 700 million month-to-month customers of Meta AI in January. It additionally launched a standalone Meta AI app earlier this week.
Meta is additional planning on utilizing AI to enhance advert concentrating on and suggestions to its social media customers. This comes after it stated that AI instruments helped enhance the corporate’s promoting income this quarter. Beating analyst estimates, Meta reported income of $42.31 billion for the primary quarter of 2025 and revenue of $6.43 per share.
Microsoft
Microsoft inventory rallied 7.6 per cent in after-hours buying and selling on Wednesday, April 30, after the tech big reported its monetary outcomes for Q3 FY2025.
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Microsoft reported spending $21.4 billion on capital bills within the first three months of 2025, down greater than $1 billion from the earlier quarter. That is the primary time after ten consecutive quarters that the tech big didn’t report a rise in AI-driven spending.
The pullback means that the corporate could also be beginning to apply extra self-discipline to its AI spending. Microsoft additional projected spending greater than $85 billion on capex in its present fiscal yr ending in June.
On the earnings name with buyers, Microsoft CEO Satya Nadella stated that the demand for its cloud and AI choices remained robust. “Cloud and AI are the important inputs for each enterprise to broaden output, scale back prices and speed up progress,” he stated.
In February, funding financial institution TD Securities stated that Microsoft had pulled out of some contracts for knowledge centres that have been tied to initiatives the corporate sought to construct for its accomplice, OpenAI. This had triggered considerations amongst buyers of a slowdown in AI infrastructure spending post-DeepSeek.
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In response, Nadella stated on Wednesday, “The truth is we’ve all the time been making changes to construct, lease, what tempo we construct all via the final no matter, ten, fifteen years. It’s simply that you simply all pay much more consideration to what we do quarter over quarter these days. Having stated that, the important thing factor for us is to have our construct and lease be positioned for what’s the workload progress of the longer term.”
“I would like energy in particular locations in order that we are able to both lease or construct on the tempo at which we wish,” he added.
The software program big stated that energy in its cloud computing and AI companies drove its gross sales previous $70 billion, up 13 per cent from the identical interval a yr earlier. It reported income of $25.8 billion, up by 18 per cent.
Apple
Apple shares fell as a lot as 4 per cent in prolonged buying and selling after the iPhone-maker reported its second fiscal-quarter earnings on Thursday, Could 1.
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Throughout the quarter, Apple stated it was delaying the roll out of key AI options first introduced on the firm’s developer convention held final yr. It stated that AI enhancements to its voice assistant Siri have been delayed to 2026.
“We’d like extra time to finish our work on these options in order that they meet our prime quality bar,” Apple CEO Tim Prepare dinner stated on an earnings name with analysts.
On the commerce battle between US and China, Apple stated it expects to take a $900-million hit to its prices for the present quarter because of the tariffs imposed by the Trump administration on China — assuming that no new tariffs are imposed or different such main modifications happen.
“We’ll handle the corporate the best way we all the time have with considerate and deliberate selections, with a deal with investing for the long run and with dedication to innovation and the chances it creates. As we glance forward, we stay assured,” Prepare dinner stated on the decision.
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Importantly, he confirmed studies that fifty per cent of iPhones bought within the US are being imported from India, and most of its different merchandise for the US are coming from Vietnam. These nations face decrease tariffs as in comparison with China. Nonetheless, Prepare dinner stated that the “overwhelming majority” of Apple merchandise for different nations are manufactured in China.
The corporate posted quarterly income of $95.4 billion, up 5 per cent year-over-year, and $24.78 billion in quarterly revenue, a 4 per cent improve from a yr in the past.
Google mother or father Alphabet’s inventory rose by 1.7 per cent after it reported outcomes for the primary quarter of 2025 on Friday, April 24.
The tech big stated it spent $17.20 billion in capital expenditures within the quarter, a 43 per cent leap from the identical interval a yr earlier. It additionally reaffirmed its $75 billion outlay for the yr, indicating that it will likely be ramping up capital spending to spice up AI infrastructure this yr.
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Alphabet’s outcomes additionally confirmed returns in Google’s essential advert enterprise, downplaying any influence from international financial uncertainty and reassuring tech buyers anxious about its investments in AI.
Google’s core advert enterprise accounted for 75 per cent of its whole income of $90.23 billion. It noticed an 8.5 per cent improve to $66.89 billion within the quarter, beating analyst estimates of a 7.7 per cent rise.
Throughout the earnings name with buyers, Alphabet stated that it was too quickly to calculate the entire influence of tariffs on its advertisements enterprise.
“The modifications to de minimis exemption will clearly trigger a slight headwind to our advertisements enterprise in 2025, primarily from APAC (Asia Pacific)-based retailers,” Google’s enterprise chief, Philipp Schindler, stated, referring to US President Donald Trump’s resolution to finish a commerce rule that allowed gadgets value as much as $5 to enter the US from China and Hong Kong freed from duties.
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“We continued to see wholesome progress and momentum throughout the enterprise, together with AI powering new options. In Search, we noticed continued double digit income progress. AI Overviews goes very effectively with over 1.5 billion customers per thirty days, and we’re excited by the early constructive response to AI Mode. There’s much more to come back,” Google CEO Sundar Pichai stated in a press release.
The search big posted earnings of $90.23 billion in income, a 12 per cent improve yr over yr. Alphabet reported a revenue of $2.81 per share for the January-March quarter. These outcomes have been reported at a time Google is dealing with threats of a breakup of its core search and promoting companies after shedding two antitrust instances within the US.
Amazon
Amazon’s shares fell greater than two per cent in after-hours buying and selling after the corporate introduced its monetary outcomes for the primary quarter of 2025 on Thursday, Could 1.
Within the first fiscal quarter, Amazon reported that it spent greater than $24 billion in capex, greater than the $14.92 billion spent in the identical interval in 2024. A lot of the capex spending went in the direction of the growth of infrastructure for Amazon Internet Companies (AWS), its cloud computing arm. Firms are more and more counting on AWS for agentic AI companies.
“Earlier than this era of AI, we thought AWS had the possibility to in the end be a multihundred-billion greenback income run fee enterprise. We now suppose it could possibly be even bigger,” Amazon CEO Andy Jassy stated on Thursday’s name with buyers.
“In case you imagine your mission is to make prospects’ lives simpler and higher daily, and also you imagine that each buyer expertise will likely be reinvented with AI, you’re going to take a position very aggressively in AI, and that’s what we’re doing,” he additional stated.
“You possibly can see that within the thousand-plus AI purposes we’re constructing throughout Amazon…. and you’ll see that within the constructing blocks AWS is establishing for exterior and inner builders to construct their very own AI options,” he added.
Amazon reported robust AWS gross sales progress of $29.3 billion, up from 17 per cent, throughout the fiscal first quarter. Jassy additionally stated that Amazon would do all the things it may to maintain costs low amid the US-China commerce battle.
“When there are unsure environments, prospects have a tendency to decide on the supplier they belief most. Given our actually broad choice, low pricing, and speedy supply, we now have emerged from these unsure eras with extra relative market section share than we began, and higher arrange for the longer term,” he stated.
The corporate posted a 9 per cent improve in income to $155.7 billion, up from $143.3 billion from the year-ago interval. It reported web revenue of $17.13 billion up from $10.43 billion in Q1 of 2024.