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What Should Investors Watch in the Q4 2025 Tech and Energy Earnings Season?

Key Insights on the Q4 2025 Earnings Season

• Research suggests tech sector earnings could grow between 13% and 26% year over year. This growth is mainly driven by advances in AI. However, geopolitical tensions could add volatility, especially to global supply chains.
• The energy sector is facing possible revenue declines of around 2%. This pressure comes from lower oil prices and ongoing global crises. At the same time, renewable energy offers support, with some companies reporting double-digit profit growth.
• Gold and silver prices have surged to record levels, near $4,560 and $78 per ounce. This reflects investor concern over rising debt and global conflicts. It may also point to higher inflation, which could pressure both tech and energy sectors.
• Analysts remain cautiously optimistic. AI continues to support tech growth. However, wars and trade disputes are increasing uncertainty. Overall, expectations lean toward moderate growth despite these challenges.

Introduction

As the fourth quarter of 2025 comes to an end, attention is shifting to the earnings season that will begin in January 2026. This period is expected to offer a clear picture of how US and European companies in the tech and energy sectors have performed. It will do so against a complex global backdrop.

Overall, earnings for the S&P 500 are projected to grow by around 8.3% compared to last year. As a result, focus is firmly on tech and energy. These sectors have faced pressure from geopolitical tensions, ongoing wars, the prevailing energy crisis, and soaring gold and silver prices.

According to FactSet data, the tech sector is expected to post strong earnings growth of up to 25.7%. This growth is expected to be mainly driven by continued progress in artificial intelligence, or AI. On the other hand, the energy sector is facing a more challenging period. It is expected to see a modest revenue decline of 1.9%, which might be due to fluctuating oil prices.

This analysis looks at earnings expectations in detail. Additionally, it highlights key companies and reviews analyst views. All insights are based on the latest available data as of late December 2025.

Tech Sector Overview

The tech sector is performing well and is probably the main growth driver. It is because the US technology giants are leading this growth momentum. Nvidia is majorly focused on AI infrastructure. It is expected to report EPS of $1.51, against the $0.89 last year. This strong performance by NVIDIA is a major factor behind the sector’s 17.9% growth in revenue.

Meanwhile, Microsoft and Apple are also expected to deliver solid results. Microsoft’s EPS is projected at $3.91, while Apple’s is anticipated at $2.66. These figures are supported by growing demand for cloud services and continued device sales. Similarly, Amazon and Alphabet, or Google, are projected to post strong numbers as well. Furthermore, across major companies, including Meta, AI-related capital spending is approaching $400 billion.

In Europe, tech momentum is also building. ASML, the Dutch leader in chip-making equipment, continues to benefit from strong global demand for semiconductors. Meanwhile, Germany’s SAP expects nice growth in software revenues. Spotify and Klarna are also in focus. According to Wedbush analyst Dan Ives, these stocks are undervalued opportunities today. Their growth could come from expansion in streaming and fintech. As Ives puts it, “It’s time for Europe to shine in tech amid frustration with valuations.”

Overall, tech earnings are expected to grow between 13% and 26%. This would mark the 10^th straight quarter of earnings growth for the sector.

However, geopolitical risks is a major concern for tech sector. The US-China tech conflict has escalated. Export restrictions on advanced chips are speeding up global decoupling. According to BlackRock’s Geopolitical Risk Dashboard, it is ranked as a high-likelihood threat to the market. As a result, supply chains for companies such as Nvidia and ASML could face disruption.

Meanwhile, ongoing wars are also adding pressure. Russia’s invasion of Ukraine and rising tensions in the Middle East are increasing cybersecurity risks. BlackRock warns that large cyberattacks could hit critical infrastructure. It also points out that AI now allows up to 90% of espionage activities to be automated.

These conflicts are also adding into a broader energy crisis. Energy costs are rising. This directly affects data centres, which rely on large amounts of electricity to operate. J.P. Morgan analysts highlight this risk clearly. They state that AI could lead to a tenfold rise in power consumption over the next three years. As a result, profit margins across the tech sector could get affected.

Furthermore, the sharp rise in silver and gold prices is also adding another challenge. As of December 26, 2025, gold reached $4,561 per ounce, while silver climbed to $78. This reflects annual gains of 72% for gold and 154% for silver. These moves are being driven by rising debt concerns and ongoing geopolitical instability.

Recent US strikes in Nigeria and growing pressure on Venezuela have increased global conflict risks. As a result, investors are moving into safe-haven assets. This trend is often described as a “debasement trade.” For the tech sector, this shift signals possible inflation and higher borrowing costs. In turn, this could slow investment in AI.

Goldman Sachs highlights another important point. Valuation gaps between European and US markets are now at their widest levels. Because of this, the firm advises greater diversification. As Nicolas Simar, Co-Head of International Equity Income, explains, “Following the significant rebound in the tech space, we are back to the highest discount in terms of relative valuations for Europe versus the US.”

Energy Sector Outlook

Turning to energy, the outlook is more moderate. In the US, NextEra Energy stands out. It is expected to deliver double-digit profit growth. EPS is forecast at $0.64, up 20.8% from last year. This growth is supported by renewable energy expansion and rising demand from data centres.

In contrast, ExxonMobil and Chevron face more pressure. Oil prices are averaging $59.34, down from $70.09 previously. As a result, sector-wide revenues could come under strain. In Europe, large energy firms are showing mixed performance. TotalEnergies and Shell report uneven results. At the same time, Siemens Energy posted record quarterly revenue above €10 billion. BP and European Energy also reported strong gains in EBITDA. For European Energy, EBITDA rose by €102.5 million to €114.5 million in the first nine months.

Geopolitical developments continue to shape the energy market. The war in Ukraine has led to drone attacks on energy infrastructure, according to BlackRock. This has increased volatility across the sector. Meanwhile, tensions in the Middle East threaten supply stability. The International Energy Agency notes that oil supply appears adequate at $60 to $65 per barrel. However, it also warns of fragility due to concentrated mineral refining.

The energy crisis is being intensified by AI-driven demand. Global investment in data centres reached $580 billion in 2025. J.P. Morgan highlights this trend clearly. It expects power demand growth in the United States to rise by five to seven times over the next three to five years. This shift supports renewable energy growth. At the same time, it puts added strain on existing power grids.

The rise in precious metals reflects these growing risks. Gold is increasingly used as a hedge against rising sovereign debt. In the US, debt is projected to reach 122% of GDP by 2034. Analyst Ed Yardeni warns that “Bond Vigilantes” could push yields higher as deficits expand. This could trigger stock market corrections and affect investment flows into energy.

The International Energy Agency stresses the need for diversification. It expects global LNG supply to rise by 50% by 2030. Around half of this increase is expected to come from the United States.

Looking ahead, the outlook improves in some areas. Analysts at Goldman Sachs expect global growth to re-accelerate in 2026. Europe is likely to benefit from increased fiscal stimulus. J.P. Morgan remains positive on AI. It sees AI as a major boost to productivity. As the firm notes, “The greatest potential boon for global productivity over the coming decade will come from AI, where U.S. companies now enjoy a commanding lead.”

However, risks remain. BlackRock continues to warn about ongoing challenges. Trade protectionism is one of the key risks that could weigh on markets going forward.

Earnings Estimates for Major Companies

Geopolitical Risks and Sector Impacts

Conclusion

In summary, the tech sector continues to benefit from strong momentum driven by AI. This creates clear upside potential. At the same time, the energy sector is navigating a difficult transition shaped by ongoing crises. As a result, a more cautious approach is needed.

Goldman Sachs offers a balanced view. It expects global growth to slow toward the end of the year. However, it also sees growth picking up again in 2026. Given this outlook, investors should closely watch how these connected forces evolve across both sectors.

Reference Links

• Q4 Earnings: Tech Expected to Remain Growth Driver
• Dan Ives loves these 4 European tech companies
• FactSet Earnings Insight
• NextEra Energy's Q4 2025 Earnings: What to Expect
• Tech war 2.0: The dangers of Trump's 'G2' bargaining
• Silver prices continue soaring
• Market Know-How 4Q 2025
• FactSet Earnings Insight (Browse)
• Outlook 2025 Building on Strength
• World Energy Outlook 2025
• Geopolitical Risk Dashboard
• Silver prices continue soaring (Browse)
• Quarterly market outlook — Fourth quarter 2025
• Earnings Release Q4 FY 2025
• European Energy sticks to lower end of 2025 EBITDA guidance

Disclaimer:
This article is for informational and educational purposes only and does not constitute financial, investment, trading, or legal advice. Always do your own research or consult a licensed advisor before making trading decisions.