Tech Sector Expected to See 15.4% Earnings Growth in Q4 2025

Written by Emily J. Thompson, Senior Investment Analyst

AAPL-0.5%

NVDA-2.15%

TSLA+1.02%

Source: NASDAQ.COM

Updated: 1d ago

0mins

Source: NASDAQ.COM

Sustained Earnings Growth: The Tech sector is projected to achieve a 15.4% year-over-year earnings increase in Q4 2025, alongside a 16.3% rise in revenues, marking the 10th consecutive quarter of double-digit earnings growth, which underscores robust market demand and industry resilience.
Positive Earnings Outlook: For 2026, the Tech sector is expected to see a 19.9% earnings growth, following a 20.0% increase in 2025, indicating a sustained confidence in the sector and attracting more investor interest.
Market Dominance: The Tech sector is anticipated to contribute 35.9% of the total earnings for the S&P 500 index while accounting for 43.1% of its total market capitalization, highlighting its significance and influence in the overall market, thereby enhancing its investment appeal.
Revision Trend: The persistent positive revisions in earnings estimates for the Tech sector reflect analysts' optimistic outlook on future profitability, which will help boost the market performance and investment value of companies within the sector.

AAPL

$259.04+Infinity%1D

Analyst Views on AAPL

Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 289.17 USD with a low forecast of 225.00 USD and a high forecast of 345.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

35 Analyst Rating

21 Buy

12 Hold

2 Sell

Moderate Buy

Current: 260.330

Low

225.00

Averages

289.17

High

345.00

Current: 260.330

Low

225.00

Averages

289.17

High

345.00

TD Cowen

Buy

maintain

$26

2026-01-07

New

Reason

TD Cowen

Price Target

$26

2026-01-07

New

maintain

Buy

Reason

TD Cowen reiterated a Buy rating and $26 price target on CompoSecure (CMPO) after JPMorgan Chase (JPM) confirmed it is taking over Apple's (AAPL) credit card program. Given CompoSecure is the exclusive metal card provider for Chase, the firm views the news as a potentially significant positive for CompoSecure, though the caveat is that it is possible Apple may have input into who makes the card. The current physical Apple Card is made of titanium, and not made by CompoSecure, the analyst tells investors in a research note.

Clear Street

Buy

maintain

$66 -> $71

2026-01-06

New

Reason

Clear Street

Price Target

$66 -> $71

2026-01-06

New

maintain

Buy

Reason

Clear Street raised the firm's price target on Globalstar (GAST) to $71 from $66 and keeps a Buy rating on the shares. The firm views the company as a "compelling hybrid investment." Globalstar has a "de-risked" satellite services business, which is supported by Apple (AAPL), and "valuable and underutilized" terrestrial spectrum assets, the analyst tells investors in a research note. Clear says President Trump's space initiative and XCOM Radio Access Network's commercial momentum enhances its government services estimates for the company.

Goldman Sachs

Buy

maintain

$320

2026-01-06

New

Reason

Goldman Sachs

Price Target

$320

2026-01-06

New

maintain

Buy

Reason

Apple App Store spending grew roughly 6% year over year in December 2025, decelerating from November as weakness in Games and Entertainment and softer trends in China and Japan offset stable U.S. growth, Goldman Sachs tells investors in a research note. While App Store growth has slowed and trails Apple's broader Services outlook, faster growth in other Services categories should support overall Services revenue, with the App Store remaining a key long-term contributor despite near-term risks, the firm adds. Goldman Sachs has a Buy rating and $320 price target on the shares.

Melius Research

analyst

Hold

Buy

upgrade

$50

2026-01-05

New

Reason

Melius Research

analyst

Price Target

$50

2026-01-05

New

upgrade

Hold

Buy

Reason

As previously reported, Melius Research upgraded Intel to Buy from Hold with a $50 price target. Recent news that Nvidia (NVDA) tested the 18A process node and didn't like it was "stale," says the analyst, who sees "a good chance" that Nvidia and Apple (AAPL) "take a hard look" at producing chips on the 14A node by 2028/2029. This news could fully filter into the stock going throughout 2026, driving higher book value, adds the analyst, who "really likes" Intel CEO Lip-Bu Tan and says that "more importantly" more powerful people like President Trump, Secretary Lutnick, Jensen Huang and Lisa Su "like him even more as a business partner."

About AAPL

Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV and Apple Vision Pro.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.