Microsoft, Alphabet, and Meta Earnings Preview: AI Momentum Meets Market Reality

The spotlight this week is poised to dominated by Big Tech’s earnings as Microsoft, Alphabet, and Meta prepare to release their Q3 results on October 29, 2025, after the U.S. market close. Together, these three AI heavyweights have added more than $2.5 trillion in market value this year, driving much of Wall Street’s rally. The key question now is whether their results can justify those 20%-plus year-to-date gains — and sustain the momentum into year-end.

Microsoft (NASDAQ: MSFT)

Microsoft is expected to post EPS of $3.65, up 10.6% year-on-year, with revenue projected to rise 14.3% to $74.96 billion. The focus remains on Azure’s cloud growth and how AI integration through Copilot and its partnership with OpenAI continues to drive enterprise adoption. Positioned at the center of corporate AI transformation, Microsoft’s forward guidance will be pivotal in gauging whether the current AI-led rally has further room to run.

Share Performance

• YTD: +22.3%
• 52-Week: +24.4%
• P/E: 37.9x

Technically, Microsoft’s share price is consolidating after slipping out of its previous ascending channel but remains supported near the 20-day moving average, around $490, which acts as a key near-term support. A sustained break below that level could open the way toward the June peak near $468, while resistance sits around $530, coinciding with July’s ceiling. A strong earnings beat could help the stock retest the $530–540 zone, potentially reestablishing its upward momentum.

Momentum indicators point to mild overbought conditions, suggesting that the stock’s next leg will largely depend on whether earnings reaffirm confidence in AI’s monetization and enterprise adoption trajectory.

Alphabet

Alphabet’s Q3 results will highlight how effectively it is monetizing AI-driven advertising and YouTube growth, while the Cloud division’s recovery remains a key watch. Markets expect revenue above $99 billion, up from $96.4 billion in Q2, with EPS easing slightly to $2.29. Investors will be looking for sustained ad momentum, efficiency gains from Gemini AI, and updates on capital expenditure and data-center investment — critical pillars for long-term AI scalability.

Share Performance

• YTD: +32.0%
• 52-Week: +54.4%
• P/E: 26.7x

Alphabet remains one of the top performers in the Magnificent 7, comfortably outpacing the Nasdaq. The stock is consolidating within the $240–250 range, supported by a steep ascending trendline that reflects ongoing optimism around AI monetization. However, the KDJ indicator shows stretched momentum. A short-term pullback could test $235–226, while a strong earnings beat could propel prices above $260.

Meta

Meta expects Q3 revenue between $47.5 billion and $50.5 billion, while management has guided for a slower pace of growth in Q4 as it laps a strong prior-year base. The company’s AI investment program remains under close watch — full-year expenses are projected between $114–118 billion, up 20–24% year-on-year. The focus will be on how effectively Meta balances heavy infrastructure spending with profitability as it plans for 2026.

Share Performance

• YTD: +23.4%
• 52-Week: +27.7%
• P/E: 26.6x

META shares have traded sideways since July, hovering between $681–$797. Prices have slipped below the 20-day SMA, hinting at weaker near-term momentum. To regain traction, Meta needs to clear resistance near $735, then $797. The KDJ indicator is rebounding from oversold territory, signaling room for upside if earnings surprise positively.

Bottom Line

Microsoft, Alphabet, and Meta remain the core drivers of market confidence in AI’s profitability and scalability. Their results will test whether the sector’s trillion-dollar valuations are grounded in durable earnings growth — or if the AI trade is nearing a consolidation phase. With enthusiasm running high and valuations stretched, this week’s results could define how long the AI-powered rally can keep leading the market into 2026.

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