Big Tech Q3 Earnings: What It Means for Your US Exposure

Every earnings season, the world’s biggest names — Apple, Microsoft, and Alphabet — shape how the Nasdaq moves. But this quarter’s numbers show something deeper: it’s no longer enough to just “own tech.” The giants are moving in very different directions, and the details decide who really makes the money.

For Indian investors with exposure to U.S. markets through ETFs or direct stocks, these differences matter more than ever. Because behind a steady Nasdaq, the gap between the winners and laggards in Big Tech is quietly widening.

Apple: Big Headline Numbers, But Cracks Beneath

Apple reported revenue of about $94 billion for the June quarter, up roughly 10% year-on-year, with earnings per share rising 12% to $1.57. Net profit came in above $23.43 billion — solid by any measure.
The company’s Services division — including iCloud, Apple Music and the App Store — touched an all-time high of around $27.42 billion, growing 13%. iPhone revenue also climbed about 13% to over $44.58 billion, helped by stable demand and product upgrades.

However, not all lines moved in sync. iPad sales fell by nearly 8%, and the Wearables and Accessories category declined close to 9%. Apple also faces external pressures: tariffs and supply-chain costs added almost $800 million in expenses this quarter and could double if conditions persist.

On the technology front, Apple is reorganising teams and exploring acquisitions to accelerate its AI ambitions, but investors see these as medium-term plays rather than immediate growth drivers.

What this means:
Apple remains a stable, high-margin business built on ecosystem stickiness. But its near-term upside looks capped unless new products or AI-led services start contributing meaningfully. For ETF investors, Apple will keep adding stability, not outperformance.

Microsoft: Cloud and AI Are Driving the Show

Microsoft delivered another strong quarter, reporting revenue of about $70 billion, up 13% from a year ago, and net profit of nearly $26 billion, up 18%.

The standout performer was its Intelligent Cloud division — including Azure, server products, and enterprise services — which surged around 21%. Within that, Azure and related services grew roughly 33%, as companies worldwide continued shifting workloads to the cloud and adopting AI solutions built on Microsoft’s platform.

The Productivity & Business Processes segment (covering Office 365 and LinkedIn) grew about 10%, while More Personal Computing (Windows, Xbox, and search) added 6%. Despite high AI-infrastructure spending, Microsoft still expanded its operating margin, showing strong cost control.

Why it matters:
Microsoft’s diversification shields it from volatility. It’s less affected by tariffs or consumer demand swings than hardware-centric peers. Most importantly, it’s one of the few players already monetising AI at scale, not just experimenting with it.

For Indian investors in U.S. ETFs, Microsoft continues to be a key driver of both growth and resilience — a rare combination in today’s market.

Alphabet: Ads Still Strong, Cloud Catching Up

Alphabet, Google’s parent company, also turned in a strong performance. Cloud revenue jumped about 32% year-on-year to $13.6 billion, while YouTube advertising rose around 13% to nearly $9.8 billion. Core search advertising grew about 12%, defying fears that AI chatbots might eat into Google’s dominance.

Alphabet is also spending aggressively to sustain its edge: capital expenditure could reach $85 billion in 2025, up from earlier guidance of $75 billion. Much of that goes into AI data-centre infrastructure and hardware for future growth. Analysts note that despite heavy investment, Alphabet’s ad engine remains robust enough to fund long-term bets.

Key takeaway:
Alphabet has managed to blend its advertising resilience with new-age growth from AI and cloud. For ETF investors, that mix offers a balance of defensiveness and optionality — steady cash flows today, with future upside from AI commercialisation.

The Broader Pattern: Tech Is No Longer One Story

Q3 2025 showed that “Big Tech” isn’t a single block anymore. Each company now reflects a different bet inside the broader tech theme:

For Indian investors, this means broad tech ETFs like Nasdaq-100 are effectively baskets of multiple mini-stories. Understanding which themes are performing better helps decide where to stay invested or where to trim exposure.

Why It Matters for Indian Investors

1. Shift from passive to selective exposure.
   If you hold U.S. ETFs such as Nasdaq-100 or thematic funds, don’t assume all “tech” will rise together. Cloud and AI are leading; hardware and devices are lagging.
2. Use earnings trends, not brand loyalty.
   It’s tempting to hold familiar names like Apple or Meta. But this quarter shows where real momentum lies — in firms executing on scalable AI or cloud platforms.
3. Check your ETF’s inner weightings.
   Many tech ETFs have overlapping exposure to the same giants. Use analytics tools like Appreciate to see which holdings are actually contributing to performance.
4. Rebalance proactively.
   When strong earnings lift one stock sharply, consider rebalancing rather than simply holding for sentiment. Microsoft’s 33% Azure growth, for instance, is a clear sign of sustained strength worth leaning into.
5. Watch macro and currency layers.
   For Indian investors, rupee-dollar fluctuations can amplify or reduce total returns. A stronger dollar generally boosts INR-denominated gains on U.S. holdings, but that can reverse quickly.

The Appreciate Advantage

Appreciate makes it easier for investors to see what’s really driving their U.S. exposure. Its analytics tool breaks down how individual companies within your fund are performing, showing you where earnings momentum lies.

Instead of relying on news headlines, investors can identify which sectors — cloud, AI, services, or advertising — are actually delivering returns and adjust their holdings accordingly.

Final Word: Don’t Just Own Tech, Own the Trend

Q3 2025 made one thing clear: technology stocks are no longer moving in unison. Microsoft’s cloud momentum, Alphabet’s resilient ad model, and Apple’s services strength show that the leaders are evolving in different directions.

For Indian investors, this means being curious, selective, and data-driven. Look beyond tickers and into the earnings engines that truly fuel growth. With the right insight, your U.S. exposure can move from broad bets to smart, theme-aligned investing — and that’s where the real compounding begins.

To know more about investing in US stocks, ETFs, and Mutual Funds, click here.
Note to the reader: This article has been produced on behalf of the brand by HT Brand Studio and does not have journalistic/editorial involvement of Mint.