Earnings Insights: Mag 7 Companies Under Review in Q1

For Immediate Release

Chicago, IL – April 28, 2025 – Zacks.com announces a list of companies expected to report earnings surprises this week. Key companies on the list include Microsoft (MSFT), Meta Platform (META), Apple (AAPL), Amazon (AMZN), and Alphabet (GOOGL).

Mag 7 Earnings Preview: Insights for Investors

As we enter Q1 2025 earnings season, over 800 companies will report results. Among them are four members of the Magnificent 7, alongside 173 other S&P 500 companies. Microsoft and Meta Platform are set to report on Wednesday, April 30^th, while Apple and Amazon will follow on Thursday, May 1^st.

Though the Mag 7 stocks have recently played a key role in the market’s recovery, their performance has been mixed this year, worsening since the market peak in February 2025. While Microsoft has shown relative stability, down just 6.4%, Apple, Amazon, and Meta have faced larger declines: Apple is down 14.8%, Amazon 17.1%, and Meta 22.6%. In comparison, the S&P 500 index has declined by 10.9% since February 19, 2025.

However, a different picture emerges when evaluating the year-over-year performance. From April 26, 2024, Meta and Apple appear stronger, while Amazon and Microsoft lag behind.

These four Mag 7 members, along with Alphabet—which has already reported solid results—and Nvidia, which is expected to report next month, are leaders in artificial intelligence. They are actively investing in data centers and infrastructure necessary for large-language models.

Despite the deep commitment to these capital expenditures, skepticism remains in the market regarding their economic value, particularly following the January DeepSeek announcement. Companies like Alphabet have reiterated their investment plans post-earnings report, and similar commitments are anticipated from Microsoft, Meta, and Amazon this week. Market sentiment has not only turned sour regarding these leaders but has also affected the broader AI sector.

Additionally, the trade uncertainties pose risks for companies such as Apple and Amazon. If recession risks materialize due to tariff uncertainties, all Mag 7 players face exposure. Economic sensitivity heightens due to dependence on digital advertising for Alphabet and Meta, while Apple and Tesla’s discretionary products may see delayed purchases during economic downturns.

Projected earnings for the Mag 7 indicate an increase of 19.6% in Q1 2025 compared to last year, driven by a 10.9% rise in revenues. This figure reflects actual results from Alphabet and Tesla as well as estimates from the remaining members, with four set to report this week.

It is important to note that estimates for the Mag 7 group are under pressure after two years of strong growth. The expected earnings growth of 9.9% for this year has dropped from 15.7% projected three months ago. Among those reporting this week, Microsoft’s estimates remain stable, while Apple and Amazon have seen slight declines. Meta has experienced significant cuts in estimates.

Key Earnings Reports This Week

In addition to the four Mag 7 companies, over 800 firms will report Q1 results this week, including 177 members of the S&P 500. Notable companies include McDonald’s, Starbucks, UPS, Pfizer, Visa, Caterpillar, International Paper, and Exxon, among others. By week’s end, Q1 results will be available for 356 S&P 500 members, representing 71.2% of the index.

The Q1 Earnings Scorecard

As of Friday, April 25^th, 179 S&P 500 members have reported results, indicating an 18% increase in total earnings compared to last year alongside a 4.2% rise in revenue. Approximately 69.8% of reporting companies exceeded EPS estimates, while 63.7% surpassed revenue expectations.

The percentages of EPS and revenue beats remain below historical averages. The 69.8% EPS beat rate for this period is down from an average of 79.1% over the past five years. Similarly, revenue beats are tracking lower than the 20-quarter average, albeit less dramatically.

Estimates Under Pressure

For Q1 as a whole, the combination of actual findings from the 179 members and estimates for those yet to report suggests earnings growth of 9.4% compared to last year, driven by 4% higher revenues. This follows the previous quarter’s earnings growth of 14.1% along with a 5.7% increase in revenue.

Estimates for the upcoming period (Q2 2025) have also begun to decline, with negative revisions expected to accelerate as companies discuss their near-term business outlook in light of ongoing uncertainties.

Depending on how the emerging tariff regime stabilizes, companies may face further challenges.