Tech Giants Q2 Profit Hits Staggering USD143B

(MENAFN) The world’s seven largest tech companies—Microsoft, Apple, Alphabet, Amazon, Meta, Nvidia, and Tesla—collectively reported a combined net profit of $143 billion in the second quarter of the year, according to their financial disclosures.

The group, commonly referred to as the "Magnificent 7," saw a robust 27.6% surge in net profit year-over-year, with a 3.5% quarter-on-quarter rise.

Total revenues for the companies reached $551.4 billion, reflecting a 15.4% increase from Q2 2023 and a 6.6% improvement over the previous quarter.

Capital expenditures (CapEx) also saw a dramatic rise, increasing by 66.1% annually, from $58.3 billion to $96.8 billion, with a quarterly increase of 24.6%.

Alphabet, the parent company of Google, led the pack with the highest net profit for the quarter, posting $28.2 billion. Microsoft followed with $27.2 billion, Nvidia earned $26.4 billion, and Meta made $18.3 billion. Amazon reported a net profit of $18.2 billion, while Tesla posted a much smaller $1.2 billion in net profit.

Tesla's profits saw the most dramatic quarterly increase, soaring by 186.6% from $409 million last quarter.

In terms of percentage profit growth, Nvidia posted a 40.7% quarterly jump, followed by Meta at 10.2%, Amazon at 6.1%, and Microsoft at 5.5%. In contrast, Alphabet saw an 18.4% decline, while Apple experienced a 5.4% decrease.

Nvidia also led in terms of the absolute dollar value increase in net profit, climbing by $7.6 billion.

While Alphabet had shown consistent growth in net profits since Q4 2022, its quarterly earnings dropped from $34.5 billion to $28.2 billion in Q2, ending its recent growth streak.

On an annual basis, Nvidia posted the largest net profit increase, with a 59.2% jump, followed by Meta (36.2%), Amazon (34.7%), Microsoft (23.6%), Alphabet (19.4%), and Apple (9.3%). Tesla’s net profit dropped by 16.3%.

Amazon posted the highest quarterly revenue, reaching $167.7 billion, followed by Alphabet with $96.4 billion, Apple at $94 billion, Meta at $47.5 billion, Nvidia with $46.7 billion, and Tesla at $22.5 billion.

Tesla led in quarterly revenue growth, posting a 16.3% increase, while Apple was the only company to report a slight 1.4% drop.

On a yearly basis, Nvidia also led in revenue growth with a 55.6% increase, followed by Meta at 21.6%, Microsoft at 18.1%, Alphabet at 13.8%, Amazon at 13.3%, and Apple at 9.6%. Tesla saw an 11.8% revenue decline, bringing its total to $25.5 billion.

In terms of capital expenditures, Amazon was the biggest spender, with $32.2 billion, while Alphabet allocated $22.5 billion, Meta $17.3 billion, Microsoft $17.1 billion, Apple $3.5 billion, Tesla $2.4 billion, and Nvidia $1.9 billion.

Despite a slight dip in the third quarter of last year, Alphabet has maintained consistent capital spending since Q1 2023.

Meta experienced the highest surge in capital expenditures compared to the previous year, with a massive 111.8% increase, followed by Nvidia at 93.9%.

Other companies showed notable increases in capital spending, with Amazon up 82.7%, Alphabet up 70.2%, Apple up 60.9%, Microsoft up 23.1%, and Tesla up 5.4%.

Industry analysts attribute these jumps in capital expenditures to the rapid expansion of artificial intelligence (AI) and data center investments, along with the growing momentum of long-term projects.

As for earnings per share, Meta led the way with $7.3, followed by Microsoft at $3.7, Alphabet at $2.3, Amazon at $1.7, Apple at $1.6, Nvidia at $1.1, and Tesla at $0.4.

Tesla’s earnings per share surged by 176.9%, Nvidia’s by 40.3%, Meta’s by 10.5%, Amazon’s by 5.6%, and Microsoft’s by 5.5%. Alphabet saw a decline of 18%, while Apple’s earnings per share dropped by 4.8%.

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