Executive summary

Q4 2025 was a solid quarter for the Disruption Aristocrats index, our quarterly list of the world’s top disruptive stocks. The average Aristocrat gained +3.66%, outperforming the S&P 500 (2.46%) for another quarter in a row.

Performance leadership remained concentrated in AI stocks. Micron (MU +56.7%) led the group as memory pricing tightened alongside accelerating AI demand. Alphabet (GOOGL +27.8%) benefited from improving AI monetization across Search and Cloud, while Lam Research (LRCX +19.9%) and Applied Materials (AMAT +18.0%) gained as capital spending on advanced chip manufacturing remained resilient. The AI infrastructure buildout continues to be the market’s most durable megatrend

Health tech & biotech stocks also contributed meaningfully. Eli Lilly (LLY +30.2%) advanced as investor confidence in the long-term earnings power of its GLP-1 franchise remained strong. And United Therapeutics (UTHR +11.2%) benefited from steady execution across its core pulmonary business and continued progress in regenerative medicine initiatives.

By contrast, several mega-cap stocks Nvidia (NVDA -0.4%), Microsoft (MSFT −6.9%), Meta Platforms (META −8.0%), and Netflix (NFLX -20.4%) saw shares consolidate after strong multi-year runs. Investors weighed elevated expectations against near-term spending cycles and margin pressures.

The quarter also brought meaningful index changes, with three removals and three new additions according with our strict rule-based selection criteria.

Additions and removals

Removals:

• Rambus (RMBS) – Market capitalization fell below the $10 billion minimum.

• PTC (PTC) – No longer outperforms the S&P 500 on a five-year basis.

• Netflix (NFLX) – No longer outperforms the S&P 500 on a five-year basis.

New additions:

• Exelixis (EXEL)

• Intuitive Surgical (ISRG)

• Analog Devices (ADI)

Current Disruption Aristocrats (Q4 2025)

Nvidia (NVDA) – AI / Robotics

The backbone of global AI compute, spanning data centers, autonomous systems, and accelerated computing.

Latest: Nvidia remains the standard-setter for AI acceleration despite near-term consolidation. Demand visibility remains strong across hyperscalers, sovereign AI projects, and enterprise deployments, reinforcing Nvidia’s central role in AI infrastructure.

Q4 2025 performance: −0.40%

Alphabet (GOOGL) – AI / Cloud Infrastructure

Combines unmatched data scale with leading AI research.

Latest: AI integration across Search, Cloud, and productivity tools continues to drive engagement and monetization leverage.

Q4 2025 performance: +27.81%

Microsoft (MSFT) – AI / Cloud Infrastructure

Anchors global enterprise computing and AI deployment.

Latest: Copilot adoption continues to expand across enterprise workflows, reinforcing Microsoft’s platform dominance.

Q4 2025 performance: −6.94%

Broadcom (AVGO) – AI / Cloud Infrastructure

A diversified semiconductor and infrastructure software leader.

Latest: Broadcom’s exposure to custom silicon, networking, and enterprise software provides durable cash flows. VMware integration continues to expand its software moat.

Q4 2025 performance: +3.81%

Meta Platforms (META) – AI / Digital Media

Owns the world’s largest social platforms and invests heavily in AI.

Latest: AI-driven ad efficiency continues to improve, while long-term bets in mixed reality remain a drag on margins.

Q4 2025 performance: −7.98%

Eli Lilly (LLY) – Biotech & Health Tech

A pharmaceutical leader at the center of metabolic and neurological innovation.

Latest: Lilly’s GLP-1 franchise continues to reshape global healthcare economics. Pipeline depth beyond obesity and diabetes remains a key long-term driver.

Q4 2025 performance: +30.20%

Micron Technology (MU) – AI / Semiconductors

Supplies high-performance memory essential for AI workloads.

Latest: AI-driven memory demand continues to tighten supply, supporting pricing power across HBM and advanced DRAM.

Q4 2025 performance: +56.69%

Lam Research (LRCX) – AI / Semiconductors

Provides equipment essential to advanced wafer fabrication.

Latest: Lam benefits from sustained AI-related fab investments and increasing equipment intensity per wafer.

Q4 2025 performance: +19.88%

Applied Materials (AMAT) – AI / Clean Energy & Climate Tech

A materials engineering leader across advanced chips and sustainability.

Latest: Applied benefits from both AI semiconductor demand and long-term efficiency improvements in chip manufacturing.

Q4 2025 performance: +18.03%

Arista Networks (ANET) – AI / Cloud Infrastructure

Provides the high-speed networking fabric powering modern data centers.

Latest: Arista continues expanding its footprint inside AI-optimized data centers, benefiting from higher-bandwidth requirements and software-defined networking adoption, even as near-term spending cycles fluctuate.

Q4 2025 performance: −12.22%

KLA Corporation (KLAC) – AI / Semiconductors

The inspection and metrology leader enabling advanced chip manufacturing.

Latest: KLA remains mission-critical to leading-edge semiconductor nodes, benefiting from rising complexity and tighter process tolerances.

Q4 2025 performance: +7.64%

Cadence Design Systems (CDNS) – AI / Semiconductors

Provides the design software powering every advanced chip.

Latest: Cadence’s AI-assisted design tools deepen switching costs and strengthen its position alongside leading foundries.

Q4 2025 performance: −11.19%

Fortinet (FTNT) – Cybersecurity / AI

Delivers integrated cybersecurity at global scale.

Latest: Margin pressure weighed on shares, though Fortinet’s platform approach and recurring revenue base remain intact.

Q4 2025 performance: −6.77%

United Therapeutics (UTHR) – Biotech & Health Tech

A rare-disease specialist with a bold regenerative medicine roadmap.

Latest: Progress in organ manufacturing and continued execution in pulmonary therapies reinforce UTHR’s long-term innovation profile.

Q4 2025 performance: +11.20%

Analog Devices (ADI) – Semiconductors

A leader in high-performance analog and mixed-signal chips.

Latest: ADI’s exposure to industrial automation, energy systems, and AI-adjacent infrastructure supports durable margins.

Q4 2025 performance: +13.34%

Intuitive Surgical (ISRG) – Robotics & Health Tech

The global leader in robotic-assisted surgery.

Latest: Procedure growth, recurring instrument revenue, and expanding indications reinforce ISRG’s long-term leadership.

Q4 2025 performance: +29.29%

Ubiquiti (UI) – Connectivity & IoT

Builds high-margin networking hardware for global markets.

Latest: Operational discipline and loyal users support strong cash generation, though shares saw profit-taking.

Q4 2025 performance: −17.94%

Exelixis (EXEL) – Biotech & Health Tech

A focused oncology company with a durable commercial franchise.

Latest: Strong cash flows and pipeline optionality position Exelixis as a high-quality large-cap biotech compounder.

Q4 2025 performance: +6.38% 

How we select the Disruption Aristocrats

Each Aristocrat meets five quantitative and qualitative thresholds that separate durable disruptors from short-term performers:

• Sustained Growth: Five-year average revenue growth ≥10%.

• Investing in the Future: R&D spending ≥5% of revenue.

• Wide Moat: EBITDA margins ≥30%.

• Proven Leadership: Outperformed the S&P 500 over five years.

• Large-Cap Stability: Market cap above $10 billion.

Together, these filters identify world's top disruptive stocks that consistently turn innovation into durable, long-term growth.

Why it matters

Quality disruptors tend to outperform the broader stock market. If you look at the best-performing stocks of the last decade – Nvidia, Apple, Google, Amazon, Microsoft, Meta – all have profited from disruption.

Companies on the Disruption Aristocrats list balance innovation with stability. They offer exposure to long-term megatrends without the volatility of early-stage stocks.

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Methodology overview

Each quarter, we screen global large-caps across profitability, reinvestment, and growth metrics, verify financials from public filings, and publish any additions or removals with commentary.

Sources: Company filings, FactSet, Bloomberg, and Disruption News research.

Disclaimer: For educational purposes only. Not investment advice.