Tech Titans Post Mixed Earnings: Meta Declines, Alphabet Surges, Microsoft Pauses
By James Hyerczyk | Updated October 29, 2025, 21:08 GMT+00:00
This week, tech giants posted clear and split earnings. Meta, Alphabet, and Microsoft all showed strong quarterly numbers. The market, however, did not react the same for each firm.
Meta’s Earnings Beat Overshadowed by Tax Charge and Spending Concerns
Meta Platforms showed steady third-quarter strength. It earned $51.24 billion in revenue, a 26% jump from last year. Its adjusted earnings per share reached $7.25, and both figures topped expectations. Advertisements pulled in $50.08 billion, helped by steady user numbers of 3.54 billion daily active users across its apps.
A sudden non-cash tax charge of $15.93 billion hit Meta’s shares. This charge came with the new "One Big Beautiful Bill." Meta said the bill would cut future tax costs, but investors still grew cautious.
Meta then raised its cost forecast. The company now expects spending between $116 billion and $118 billion, with capital outlays reaching up to $72 billion in 2025. The Reality Labs division lost $4.4 billion as well. These points made traders doubt the return on Meta’s heavy bets on AI and virtual reality.
Alphabet Hits Milestone with Historic Revenue, Cloud Drives Growth
Alphabet surprised the market by posting $102.35 billion in revenue for the quarter. It passed the $100 billion mark for the first time. Google Cloud revenue jumped 35% year-over-year to $15.15 billion as AI tech drove strong demand.
Earnings per share came in at $2.87. This number is solid, though accounting methods make it hard to compare with other estimates. After the report, shares grew by 5% in after-hours trading.
Alphabet’s core search business raised $56.56 billion, a 15% increase from last year. A $3.45 billion fine from the European Union cut into profits, but many saw this as a manageable cost. The company now sets its 2025 capital spend between $91 billion and $93 billion. Investors viewed this higher spend as a smart move given the $155 billion pending in Google Cloud work.
Microsoft Posts Broad-Based Beats but Faces Investor Caution
Microsoft reported solid results with revenue growing 18% to $77.67 billion. Its Azure cloud grew 40%, topping the Wall Street forecast of 38%. Earnings per share reached $4.13, above the expected $3.67. Still, Microsoft’s stock dipped slightly after its report. A $3.1 billion charge on the OpenAI investment hurt net income. Shares had already risen 28% this year and reached record highs before the earnings report, so much of the good news was already built in.
The firm noted that capital spending would remain high into 2026, yet warned that growth might slow. This note of caution, along with its ongoing high investment in AI, made some investors careful.
Market Reaction Reflects Growing Focus on Quality of Growth
Investors came to Big Tech earnings season in search of more than big numbers. They looked for clear AI profit paths and strict cost plans. Alphabet’s clear results drove a stock rally, while Microsoft’s expected gains led to a quieter move. Meta’s strong revenue lost weight under a heavy tax charge and rising costs.
As the market waits for news from Apple and Amazon, expectations are up. Investors now want growth stories that pair tech plans with clear money results.
About the Author:
James Hyerczyk is a seasoned technical analyst and market educator based in the U.S., with over 40 years of experience in analyzing market trends and trading. He is an author of two books on technical analysis and has expertise spanning futures and stock markets.
Disclaimer: The information provided in this article is for educational and informational purposes and does not constitute financial advice. Readers should conduct their own research or consult a financial advisor before making investment decisions.
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