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.
Q3 earnings season continued this week and we are here to keep you well informed on all of the names we cover.
Let’s dive in.
Microsoft (MSFT)
Microsoft $MSFT ( ▲ 0.4% ) delivered a strong Q1 beat driven by accelerating AI cloud demand, but cautious guidance weighed on sentiment. The stock is -3.5% so far this week.
EPS: $4.13 vs $3.67 est.
Revenue: $77.67B vs $75.38B est.
Cloud growth: Azure +40% YoY driving 26% Microsoft Cloud revenue growth.
Operating income: +24% YoY to $38B with margin expansion from cloud mix, profit margin 35.7%.
Cash flow: Operating cash flow +32% YoY to $45.1B, free cash flow +33% to $25.7B.
Capex: AI infrastructure spend jumped to $19.4B, up ~30% YoY.
Guidance: Q2 rev $79.5-$80.6B (est $80.1B), Azure +37% YoY, gross margin ~66%.
🔐 Edge Takeaway: The stock’s 3% drop reflected concern over rising AI infrastructure spend despite another quarter of solid execution. Capex…upgrade to Edge+ to read the Full Edge Takeaway. Take advantage of our Earnings Season sale and get 15% off today!
Apple (AAPL)
Apple $AAPL ( ▲ 0.54% ) delivered a strong Q4 beat driven by double-digit Services growth and resilient iPhone demand. The stock is up 3.5% so far this week.
EPS: $1.85 vs $1.78 estimate
Revenue: $102.47B vs $102.23B estimate
iPhone momentum: iPhone revenue +6% YoY to $49.0B.
Services strength: Services revenue +15% YoY to $28.8B.
Regional trend: China sales -4% to $14.5B amid weaker consumer demand.
Margins: Gross margin expanded to 47.2% on product mix and cost efficiency.
Capital returns: Apple repurchased $90.7B in stock and paid $15.4B in dividends during FY25.
🔐 Edge Takeaway: Apple’s Q4 did exactly what it needed to. Revenue rose 8% to $102.5B, EPS climbed 13% to $1.85, and Services grew +15% YoY to $28.75B. iPhone revenue grew 6% to $49B, below estimates, but the December…upgrade to Edge+ to read the Full Edge Takeaway. Take advantage of our Earnings Season sale and get 15% off today!
Alphabet (GOOGL)
Alphabet $GOOGL ( ▲ 1.55% ) delivered a blowout Q3 with record revenue and EPS growth, powered by double-digit growth across Search, YouTube, and Cloud. The stock is +6% so far this week.
EPS: $2.87 vs $2.26 estimate
Revenue: $102.35B vs $99.94B estimate
Advertising strength: Google ad revenue +13% YoY to $74.2B driven by Search and YouTube.
Cloud surge: Google Cloud revenue +34% YoY to $15.2B with margin expanding to 23.7%.
EC fine impact: $3.5B fine trimmed GAAP margin to 30.5%, ex-fine margin was 33.9%.
Cash engine: Free cash flow +39% YoY to $24.5B and operating cash flow +58%.
Guidance: Capex raised to $91-93B for FY25 to expand AI infrastructure.
🔐 Edge Takeaway: Alphabet’s Q3 showed why it remains one of the cleanest execution stories in tech. Management…upgrade to Edge+ to read the Full Edge Takeaway. Take advantage of our Earnings Season sale and get 15% off today!
Amazon (AMZN)
Amazon $AMZN ( ▲ 0.26% ) delivered strong Q3 results with an EPS beat and AWS acceleration. The stock is up +13% this week.
EPS: $1.95 vs $1.57 est
Revenue: $180.17B vs $177.91B est
AWS growth: +20% YoY to $33.0B as AI demand re-accelerated cloud usage.
Advertising surge: +24% YoY to $17.7B, now Amazon’s third-largest profit engine.
Retail rebound: North America +11%, International +14% with record Prime delivery speeds.
Capex pressure: $115.9B (+78% YoY) drove FCF -69% to $14.8B.
Guidance: Q4 revenue $206-213B, op income $21-26B, both ~+12% prior-year comps.
🔐 Edge Takeaway: The standout from Amazon’s latest quarter is unmistakable, it was…upgrade to Edge+ to read the Full Edge Takeaway. Take advantage of our Earnings Season sale and get 15% off today!
Meta Platforms (META)
Meta Platforms $META ( ▼ 0.86% ) delivered a revenue beat but an EPS miss due to a one-time $15.9B tax charge and higher than expected capex guidance sent shares tumbling. The stock is down about 9% this week.
EPS: $1.05 vs $6.72 est. ($7.25 excluding tax hit)
Revenue: $51.24B vs $49.51B est.
Ad demand: Impressions +14% YoY with pricing +10%, driving 26% revenue growth.
Users: Family DAP +8% to 3.54B, marking steady engagement growth.
Capex: Surged +110% YoY to $19.37B as Meta ramps AI infrastructure.
Profit impact: $15.9B non-cash tax hit cut net income by 83%.
Guidance: Q4 revenue expected $56-59B, FY capex raised to $70-72B with “notably larger” dollar growth expected in 2026.
🔐 Edge Takeaway: Meta’s advertising engine delivered solid growth as ad revenue climbed +26% YoY, but the cost side flipped…upgrade to Edge+ to read the Full Edge Takeaway. Take advantage of our Earnings Season sale and get 15% off today!
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Mark & Chris
The Investor’s Edge
Disclosure
This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.
