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Good morning investors!

During the ever important earnings season, we publish our “Earnings Recap” — an in-depth summary of the earnings reports for stocks that we cover on a regular basis.

Earnings season is in full swing and we just had the biggest week of the season — let’s dive in.

Apple (AAPL)

Apple reported a solid quarter, with revenue and earnings per share both exceeding analyst expectations, driven by strong growth in services and higher-margin product categories.

The company posted net income of $36.3 billion, or $2.40 per diluted share, a 7% increase from the prior year, while total revenue grew 4% YoY to $124.3 billion.

Despite a 1% decline in iPhone revenue, Apple saw double-digit growth in Mac (+16%) and iPad (+15%), helping offset weakness in its largest product category. Services revenue surged 14% YoY to $26.3 billion, reflecting Apple’s continued push into high-margin recurring revenue streams. However, operating cash flow declined 25% YoY to $29.9 billion, and revenue from Greater China fell 11%, raising concerns about demand in the region.

Apple did not provide specific guidance for FY 2025 but emphasized its focus on AI, services expansion, and hardware innovation. The company continued its aggressive capital return program, repurchasing $23.6 billion in stock during the quarter.

AAPL shares are +8.7% so far this week.

Microsoft (MSFT)

Microsoft reported strong quarterly earnings, surpassing expectations on both revenue and EPS, driven by robust growth in its cloud and AI segments.

The company posted net income of $24.1 billion, up 10% YoY, on revenue of $69.63 billion, a 12% YoY increase, beating analyst estimates of $68.87 billion. Earnings per share came in at $3.23, exceeding the expected $3.11 by 3.86%.

Key drivers of growth included Intelligent Cloud revenue of $25.5 billion, up 19% YoY, and Productivity revenue of $29.4 billion, which grew 14% YoY. The Computing segment remained flat at $14.7 billion, but Microsoft Cloud revenue surged 21% YoY to $40.9 billion, with AI-related cloud revenue seeing 175% YoY growth.

Operating income climbed 17% YoY to $31.7 billion, while operating expenses increased 9% YoY to $37.9 billion. The company also returned $9.7 billion to shareholders through buybacks and dividends.

For FY 2025, Microsoft reaffirmed plans to continue aggressive AI and cloud investments while maintaining operational discipline. The company expects revenues for the current quarter to range between $67.7 billion and $68.7 billion, falling short of the $69.78 billion estimate from analysts.

MSFT shares are -5.4% so far this week.

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Meta Platforms (META)

Meta delivered a strong Q4 2024 earnings report, beating estimates on both revenue and EPS, fueled by robust advertising growth and disciplined cost management.

The company reported revenue of $48.39 billion, up 21% YoY, surpassing the $46.99 billion estimate, while net income soared 49% YoY to $20.8 billion, driving EPS to $8.02 vs. the $6.76 estimate (+18.6% beat).

Advertising revenue remained the key growth driver, reaching $46.8 billion (+21% YoY), with average price per ad up 14% YoY, indicating strong monetization trends. Operating income surged 43% YoY to $23.4 billion, while operating expenses rose just 5% YoY to $25.0 billion, reflecting Meta's focus on efficiency.

Reality Labs revenue remained modest at $1.1 billion (+1% YoY), but its continued investment underscores Meta’s long-term metaverse ambitions. Free cash flow stood at $13.2 billion (+14% YoY), supported by $29.75 billion in share buybacks for the full year.

For Q1 2025, Meta guided for revenue between $39.5B-$41.8B, in line with seasonal trends but slightly below some bullish expectations. Full-year guidance projects $114B-$119B in revenue and $60B-$65B in capex, reflecting continued investment in AI and infrastructure. With 43.1% profit margins and strong ad revenue momentum, Meta remains well-positioned for sustained profitability and shareholder returns heading into 2025.

META shares are +7.9% so far this week.

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Tesla (TSLA)

Tesla reported a disappointing quarter, missing both revenue and EPS expectations as automotive sales declined despite overall delivery growth.

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