Tech giants Apple and Amazon have surpassed expectations with financial results that exceeded Wall Street forecasts, concluding a significant earnings week for the world’s leading firms. Both companies reported double-digit revenue growth and optimistic outlooks, easing investor concerns after a challenging period for the broader tech sector.
Apple experienced a notable increase in iPhone sales, while Amazon’s resurgence was propelled by its cloud division. Despite facing tariff pressures, layoffs, and speculation about an AI bubble in Silicon Valley, both companies demonstrated resilience.
Apple’s results marked its first quarterly report since the launch of the iPhone 17 range, which CEO Tim Cook described as “off the chart.” The company reported $102.5 billion (£78 billion) in revenue, an eight per cent year-on-year increase, surpassing analyst expectations. Net income reached $27.5 billion (£21.4 billion), nearly doubling last year’s figure, boosting Apple shares in after-hours trading.
Despite new tariffs from Donald Trump on Chinese and Indian imports costing Apple $1.1 billion last quarter, the company achieved a record $49 billion (£36 billion) in iPhone sales, a six per cent rise. Cook projected total revenue growth of 10 to 12 per cent in the final quarter of the year, traditionally Apple’s busiest, driven by strong demand in the US and Europe. “We expect the December quarter to be the best ever in the history of the company,” Cook stated.
These record-breaking figures come as Apple’s market capitalisation surpassed $4 trillion for the first time this week, solidifying its position alongside Microsoft and Nvidia in the trillion-dollar club.
Amazon also delivered a surprising performance on Thursday, with net sales up 13 per cent to $180.2 billion (£133 billion) and net income surging 38 per cent to $21.2 billion (£15.6 billion). The primary driver was a sharp rebound in its cloud business, Amazon Web Services (AWS), which grew 20.2 per cent to $33 billion (£24.8 billion), its fastest pace since 2022. This performance boosted Amazon’s stock by 14 per cent in after-hours trading, briefly adding approximately $330 billion to its market value.
“AWS is growing at a pace we haven’t seen since 2022,” said Amazon CEO Andy Jassy. “We continue to see strong demand in AI and core infrastructure.” AWS, which accounts for roughly 60 per cent of Amazon’s operating income, overcame a major outage earlier this month that affected thousands of websites. The strong performance suggested cloud customers were increasing AI-related spending after a year of cost-cutting.
Advertising revenue also increased by 24 per cent to $17.7 billion, as Amazon intensified its focus on sponsored product listings and retail ad placements. This positive outcome came despite a $2.5 billion legal settlement with the US Federal Trade Commission and $1.8 billion in severance costs following 14,000 job cuts. Jassy described the restructuring as a “cultural reset” rather than a financial one, stating the company needed to “return to being the world’s largest startup.”
Despite this, Amazon’s capital spending appears to be increasing. The company anticipates $125 billion in capital expenditures next year, primarily for AI infrastructure and new data centres. “Amazon’s results show a company firing on all cylinders again,” said GlobalData’s Neil Saunders. “AI is fuelling growth across the business, and those investments will define its competitive edge for the next decade.”
The positive reports from both companies contrasted sharply with Meta’s challenging week and highlighted that not all Big Tech firms are on equal footing. Apple is demonstrating that traditional product sales remain effective, while Amazon is leveraging its extensive AI and cloud infrastructure to generate revenue. As Federal Reserve Chair Jerome Powell remarked on Wednesday: “Today’s AI leaders actually have earnings.”
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