Mag-7 Earnings: A Surprise or a Disappointment for ETF Investors?

October 31, 2025

Most of the Magnificent Seven firms are currently disclosing their financial performance. It’s worth noting that this group, often referred to as the Mag 7, is central to the technology representation in the S&P 500. They make up roughly 25% of the S&P 500’s total revenue.

As of the earnings trends released on October 29, 2025, the S&P 500 index is expected to see a 6.1% rise in third-quarter earnings compared to the previous year (+7.3% when excluding the strong earnings from the Mag 7 group).

The Magnificent 7’s profits in the third quarter are predicted to grow by 11.5% year-over-year, alongside a 15.4% increase in sales. This follows a robust performance in the previous quarter, where profits rose by 26.4% on a 15.5% sales increase, based on the earnings trends noted on October 29, 2025.

With that in mind, let’s take a closer look at how Wall Street’s tech giants have fared this earnings season. Were the results what you expected, or did they turn out differently?

Amazon (AMZN) experienced a significant surge of over 12% in premarket trading on October 31, 2025, after announcing third-quarter results that surpassed forecasts in both sales and profits. The strong performance in their cloud segment was attributed to rising AI demand. CEO Andy Jassy noted that Amazon “continues to make aggressive investments” to meet growing needs, reflecting the increasing U.S. spending on AI.

Apple (AAPL) saw a 1.9% bump in premarket trading on October 31, 2025, as reported by Yahoo Finance. This uptick followed better-than-expected quarterly results, although iPhone sales and revenue from China were a bit disappointing. CEO Tim Cook remains optimistic, highlighting strong demand for the iPhone 17.

Cook anticipates a revival in Chinese revenue by the first quarter and projected that the December quarter will yield “the best ever revenue” for Apple, alongside record iPhone sales. This news comes as Apple’s market valuation recently surpassed $4 trillion.

Microsoft (MSFT) delivered results that exceeded expectations, fueled by a remarkable 40% growth in its Azure cloud services. Both revenue and profits rose year-on-year, exceeding forecasts. The intelligent cloud division, which comprises Azure, experienced a 28% rise in revenue compared to the previous year. Nevertheless, the stock fell nearly 3% on October 30, 2025, following the announcement of increased capital spending this fiscal year.

Meta (META) faced a sharp drop of 11.3% on October 30, marking its steepest one-day decline in three years. While the third-quarter sales and profits exceeded forecasts, the GAAP profit saw a substantial decline of 82.6%. The tax burden was a significant factor, with the company reporting $15.93 billion owing under President Donald Trump’s “One Big Beautiful Bill Act.”

As noted by Reuters, Mehta expects a “significant” increase in capital spending next year, driven by large investments into AI. The company anticipates capital expenditures between $70 billion to $72 billion, compared to an earlier forecast of $66 billion to $72 billion.

Alphabet (GOOGL) stock increased by 2.5% on October 30, as the company outperformed expectations in both sales and profits. Capital expenditures have risen to $91 billion to $93 billion in 2025 to advance its AI capabilities. Google Cloud’s revenue jumped 33.5%, surpassing the Zacks Consensus Estimate by 3.25%. Moreover, Google’s AI application Gemini now boasts over 650 million monthly active users, up from 450 million in the last quarter.

Tesla (TSLA) announced its financial results after the market closed on October 22, 2025. While sales for the third quarter exceeded expectations with a 12% increase, profits were disappointing, showing a 37% drop in net income. Consequently, the stock fell 1.5% over the past week and was down 4.6% on October 30, 2025.

Nvidia (NVDA) is expected to release its earnings on November 19, 2025. Currently, Nvidia is the sole company boasting a market cap of $5 trillion. They’ve been active in acquiring new assets and recently announced collaborations to develop supercomputers and self-driving vehicles.

Despite the drop in Meta’s stock, CEO Mark Zuckerberg has defended the company’s expensive spending plan, arguing that their core business remains profitable and they are preparing for future advancements in superintelligence. Many companies, like Amazon, Alphabet, and Microsoft, are following suit with plans for aggressive capital investments in AI.

Nvidia is also pushing hard to expand its AI narrative. They’re landing major deals and, despite some concerns about the returns from AI, there’s strong belief in the continued boom within this sector, which is a positive signal for investing in Mag-7 ETFs.

So, investing in ETFs like the Round Hill Magnificent Seven ETF (MAGS), Micro Sector FANG+ ETN (FNG), Vanguard Mega Cap Growth ETF (MGK), and Invesco S&P 500 Top 50 ETF (XLG) might be wise. The MAGS-7 ETF saw a 1.8% increase over the last week, even after a slight decline of 1.1% on October 30, whereas the S&P 500 only gained 0.5% during the same period.