Meta, Microsoft, Google, Apple, and Amazon release Q1 FY2025 results, highlighting resilience in AI investment, but signs of cautious spending emerge.

In the wake of economic uncertainty and escalating trade tensions, Big Tech Q1 2025 earnings suggest that while AI momentum remains intact, a full-throttle approach may be softening. Industry giants Meta, Microsoft, and Google posted robust earnings for the first quarter, signaling an ongoing commitment to AI infrastructure. Meanwhile, Amazon and Apple flagged concerns about rising tariffs and delays in AI feature rollouts.

Meta: Rising Capex Signals AI Infrastructure Push

Meta shares jumped 4.2% in after-hours trading on April 30, following the release of its Q1 FY2025 financials. Despite a quarter-over-quarter decline in capital expenditure—from $14.84 billion to $13.69 billion—the company raised its full-year capex forecast to a range of $64–$72 billion. Previously, it aimed to cap spending at $65 billion.

Meta CFO Susan Li attributed the increased forecast to the company’s accelerated plans to expand its data center capacity in support of AI development. The anticipated impact of hardware export tariffs was also a factor.

CEO Mark Zuckerberg emphasized the urgency of AI infrastructure investments: “The pace of progress across the industry and the opportunities ahead for us are staggering.” He also revealed that nearly one billion users now engage with Meta’s AI assistant daily, up from 700 million monthly users earlier this year.

Meta surpassed Wall Street expectations with Q1 2025 revenue of $42.31 billion and earnings of $6.43 per share. The company credits its AI tools for enhancing ad performance and optimizing social media experiences.

Microsoft: Cautious Capex Despite Strong AI Demand

Microsoft’s stock climbed 7.6% in after-market trading on April 30, as it reported Q1 FY2025 earnings. The tech behemoth disclosed $21.4 billion in capex for the quarter, marking its first sequential drop after ten straight quarters of increases in AI-related investments.

CEO Satya Nadella said demand for Microsoft’s cloud and AI services remains solid, asserting that “Cloud and AI are the essential inputs for every business to expand output, reduce costs and accelerate growth.” Despite reports that Microsoft abandoned certain OpenAI data center deals, Nadella clarified that infrastructure decisions remain strategic and workload-driven.

The company projected over $85 billion in capex for the current fiscal year. With quarterly revenue reaching $70.1 billion—a 13% year-over-year increase—and profit rising to $25.8 billion, Microsoft maintains a dominant position in the AI race.

Apple: Tariffs and AI Delays Weigh on Outlook

Apple shares slid nearly 4% in extended trading on May 1 after the company admitted to postponing key AI features, including updates to its voice assistant Siri, now scheduled for 2026.

CEO Tim Cook cited quality standards as the reason behind the delay, stating, “We need more time to complete our work on these features so they meet our high quality bar.”

Apple also warned of a $900 million cost impact in the current quarter due to ongoing trade tensions, specifically the 145% tariffs imposed on Chinese imports. While 50% of iPhones sold in the U.S. are now sourced from India, much of its global production still relies on China.

Nonetheless, Apple posted solid results: $95.4 billion in revenue (up 5% YoY) and $24.78 billion in profit (up 4%).

Google: Accelerated Capex to Bolster AI Infrastructure

Alphabet, Google’s parent company, saw a 1.7% uptick in stock price after announcing its Q1 FY2025 results on April 24. The company reported a 43% year-over-year increase in capex, hitting $17.2 billion, and reaffirmed its $75 billion capex plan for the year—focused primarily on AI-related infrastructure.

Google’s ad division, which accounted for 75% of total revenue, grew by 8.5% to $66.89 billion, outpacing expectations. CEO Sundar Pichai touted AI’s role in driving search innovation, noting over 1.5 billion users for AI Overviews and growing traction for AI Mode.

Google’s total revenue hit $90.23 billion—a 12% YoY rise—while EPS stood at $2.81. Despite facing antitrust pressures and trade policy challenges, Alphabet’s AI investments appear undeterred.

Amazon: AWS-Fueled AI Expansion Continues

Amazon stock fell over 2% in after-hours trading on May 1, even as the company posted a robust 9% revenue increase to $155.7 billion. Its Q1 FY2025 capex soared to more than $24 billion, up from $14.92 billion the previous year, with the majority funneled into Amazon Web Services (AWS).

CEO Andy Jassy positioned AI as core to Amazon’s mission: “We now think [AWS] could be even larger,” he said, emphasizing the role of AI in transforming customer experiences and developer tools alike. AWS reported a 17% YoY jump in sales, reaching $29.3 billion.

Jassy added that Amazon aims to counter the economic drag from tariffs by maintaining low prices and efficient service. The company reported net profits of $17.13 billion, a sharp rise from $10.43 billion in Q1 2024.

AI Momentum Holds, But Uncertainty Looms

While Big Tech Q1 2025 earnings reflect sustained enthusiasm for AI, varying strategies and external pressures—especially tariffs—highlight a more nuanced reality. Meta and Google are accelerating their infrastructure plans, Microsoft is exercising caution, Apple is delaying key launches, and Amazon is aggressively expanding AWS. For now, the AI race continues—but with measured steps.

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