What Lies Ahead for Mag-7 ETFs in Q3 Earnings Season?

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We are off to a strong start this third-quarter earnings season. Not only are most companies comfortably surpassing estimates, but their guidance and management commentary have also been largely reassuring. The S&P 500 index is expected to report a 6.5% uptick during the third-quarter earnings season on 6.4% higher revenues.

However, excluding the Tech sector contribution, third-quarter earnings for the rest of the S&P 500 index will likely rise only 4.2% on 7.3% higher revenues, per Earnings Trends issued on Oct. 17, 2025. This highlights the importance and the greater role of the technology sector in driving the S&P 500.

Note that the “Magnificent Seven” or “Mag 7” group, comprising Apple AAPL, Microsoft MSFT, Alphabet GOOG, GOOGL, Amazon AMZN, NVIDIA NVDA, Tesla TSLA and Meta Platforms META, is the backbone of the S&P 500’s tech exposure.

The Mag 7 stocks accounted for 24% of all S&P 500 earnings in second-quarter 2025, with the proportion expected to increase to 24.3% in third-quarter 2025. This makes it important to preview their earnings and take positions before their earnings releases. In any case, these seven are among the most-talked-about stocks on Wall Street in recent times, thanks to their massive initiatives in the ongoing AI boom.

For the Mag 7 group, third-quarter earnings are expected to rise 12.0% from the same period last year on 15.0% higher revenues, which will follow the group’s 26.4% earnings growth on 15.5% revenue growth in the preceding period.

Third-quarter earnings for the S&P 500 index are anticipated to grow 4.8% from the same period last year if the Mag 7 group’s substantial earnings contribution is excluded (versus 6.5% increase otherwise). For the Mag 7 group, total 2025 earnings are expected to increase 17.8% on 10.7% revenue growth, per Earnings Trends.

Microsoft, which is expected to report results on Oct. 29, has an Earnings ESP of -1.20% and a Zacks Rank #2 (Buy). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the chances of an earnings beat.

Alphabet will likely report earnings on Oct. 29. The stock has an Earnings ESP of -6.98% and a Zacks Rank #3.

Meta Platforms, too, is expected to report on Oct. 29. The stock has an Earnings ESP of +8.48% and it sports a Zacks Rank #1 at present.

Apple will likely report earnings on Oct. 30. The stock has an Earnings ESP of -4.29% and a Zacks Rank #3.

Amazon, too, will likely report earnings on Oct. 30. The stock has an Earnings ESP of +21.97% and a Zacks Rank #2.

NVIDIA is expected to report earnings on Nov. 19. The stock has an Earnings ESP of +1.33% and a Zacks Rank #2.

Meanwhile, Tesla reported results on Oct. 22, 2025, after market close. Tesla’s earnings missed estimates but revenues beat the same. Tesla reported a 12% increase in Q3 revenues while net income fell 37%. Shares slumped about 4% after hours on Oct. 22.

Except for Meta and Amazon, the other three currently have a negative Earnings ESP. NVIDIA still has a few weeks before reporting. Thus, there is still room for notable changes in its ESP. Considering all aspects, the outlook for the Mag 7 this earnings season looks moderate.

Given this, investors may want to invest in these stocks through ETFs as the basket approach minimizes the company-specific concentration risks. Below, we have highlighted some ETFs with the largest exposure to Mag 7.

Roundhill Magnificent Seven ETF MAGS: It is the first-ever ETF offering investors equal-weight exposure to the Mag 7 stocks.

MicroSectors FANG+ ETN FNGS: The underlying NYSE FANG+ Index is an equal-dollar weighted index, which seeks to provide exposure to a group of highly-traded growth stocks of next-generation technology and tech-enabled companies. MicroSectors FANG+ ETN has a Zacks ETF Rank #3 (see: all the Technology ETFs here).

Vanguard Mega Cap Growth ETF MGK: It tracks the CRSP US Mega Cap Growth Index. The in-focus Mag 7 stocks collectively account for 60% of the total assets. MGK has a Zacks ETF Rank #3.

Invesco S&P 500 Top 50 ETF XLG: The underlying S&P 500 Top 50 Index comprises 50 of the largest companies in the S&P 500 Index. The Mag 7 stocks collectively make up about 55% of the basket. The fund charges 20 bps in fees.

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