Big Tech Earnings Review + Outlook

After facing heavy selling pressure in 2022, big tech surprised analysts during the most recent April/May US earnings season – with Apple, Microsoft, Amazon, Meta, and Alphabet – all beating analyst expectations.

Here is an overview of those earnings results and a look at where analysts think big tech heads next.

Apple Q2 Earnings

Apple bucked the trend of many tech companies as part of its latest quarterly earnings report, with CEO Tim Cook stating that the company had no plans to announce layoffs.

Beyond that, Apple had a strong quarter, delivering the following results:

Revenue of US$$94.8 billion v $92.96 billion expected
iPhone revenue of US$51.3 billion v US$48.8 billion expected
Services revenue of US$20.91 billion v US$20.97 billion expected
Gross margin of 44.3%
Earnings per share of US$1.52 v US$1.43 expected

On average, AAPL currently has a Buy rating and an estimated price target of US$172.95 per share.

Microsoft Q3 Earnings

Following Microsoft’s US$13 billion bet on AI through its investment in OpenAI, it was unsurprising that the tech stalwart talked up the transformative power of AI as part of its Q3 earnings release.

Overall, Microsoft beat analyst estimates across the board, generating total Q3 revenue of US$52.9 billion vs US$51.0 billion expected and Q3 EPS of US$2.45 vs US$2.23 expected.

On average, MSFT currently has a Buy rating and an estimated price target of US$328.61 per share.

Amazon Q1 Earnings

Amazon continues to diversify its revenue away from e-commerce, with the tech conglomerate’s ads and cloud businesses now contributing a little over US$30 billion in revenue.

Overall, Amazon comfortably beat sales estimates in the quarter, reporting Q1 revenue of US$127.4 billion vs US$124.5 billion expected; and Q1 EPS of US$0.31 cents.

On average, AMZN currently has a Buy rating and an estimated price target of US$132.18 per share.

Meta Q1 Earnings

Building on the stunning stock performance in 2023, Meta handily beat analyst expectations in Q1 FY23, reporting first quarter revenue of US$28.6 billion vs the US$27.6 billion expected; and EPS of US$2.20 vs US$2.03 expected.

Zuckerberg continues to slash costs aggressively, with the social media giant now having cut ~66,000 or approximately 25% of its workforce in recent times.

On average, META currently has a Buy rating and an estimated price target of US$268.82 per share.

Alphabet Q1 Earnings

Of all the big techs, it is potentially Alphabet – parent of Google – which is facing the highest degree of competitive pressure as a result of OpenAI’s ChatGPT product, which has been a hit among consumers.

Nonetheless, Alphabet posted revenue and earnings beats as part of its Q1 report: revenue came in at US$69.8 billion vs US$68.9 billion expected; and EPS was US$1.17 vs US$1.07 expected.

On average, GOOGL currently has a Buy rating and an estimated price target of US$129.21 per share.

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