Mag 7 Earningspalooza: Big Tech Smashes Estimates, Stocks Throw a Mood Swing -( $MSFT $META $AMZN $GOOG )

All four Magnificent 7 companies reporting on April 29, 2026 exceeded Wall Street’s expectations, though market reactions were mixed as investors parsed massive AI infrastructure spending plans against revenue growth trajectories.

Microsoft: AI Revenue Surges 123% YoY

Microsoft delivered a decisive beat, reporting fiscal Q3 (ending March 31) EPS of $4.27 on revenue of $82.89 billion, surpassing analyst estimates of $4.04 EPS and $81.46 billion in revenue. Revenue grew 18% year-over-year, representing an acceleration from the 16% growth analysts had modeled.

The standout metric: Microsoft’s AI business reached a $37 billion annual revenue run rate, up 123% compared to the prior year. Azure cloud computing showed strong expansion, validating the company’s aggressive AI infrastructure investments. Despite the earnings beat, Microsoft shares fell over 1% in after-hours trading as investors digested the results following the stock’s worst quarterly performance since 2008.

Meta: Revenue Guidance Overshadows Massive Capex Hike

Meta crushed expectations with Q1 EPS of $10.44 versus the $6.72 consensus estimate—a 55% beat—while revenue came in at $56.31 billion compared to the $55.45 billion forecast. Revenue grew 31% year-over-year, marking Meta’s fastest revenue expansion since 2021.

However, shares initially slid in after-hours trading after Meta raised its 2026 capital expenditure guidance to $115-$135 billion, up from prior estimates of $110-$115 billion. The increased spending reflects Meta’s commitment to AI infrastructure buildout, particularly for its Reality Labs division and AI training capabilities. Meta’s strong Q2 revenue guidance of $53.5-$56.5 billion—well above the $51.27 billion consensus—ultimately supported the stock.

Amazon: E-Commerce and AWS Drive Strong Performance

Amazon reported Q1 net sales of $181.5 billion, up 17% year-over-year (15% excluding favorable foreign exchange impacts), beating the $177.2 billion consensus estimate. Net income surged to $30.3 billion, or $2.78 per diluted share, far exceeding the $1.62-$1.63 EPS estimates and last year’s $1.59.

The headline net income figure included a pre-tax gain of $16.8 billion from Amazon’s investment in AI startup Anthropic. Operating income climbed to $23.9 billion, driven by strong performance across all three segments: North America ($8.3 billion), International ($1.4 billion), and AWS ($14.2 billion). AWS revenue growth of approximately 25% matched analyst projections of $36.79 billion. Amazon’s advertising business continued gaining traction with revenue reaching approximately $16.89 billion, up 21% year-over-year.

Alphabet: Cloud Margin Expansion Powers EPS Beat

Alphabet posted Q1 revenue of approximately $106.9-$107 billion, representing 18.5% year-over-year growth and exceeding the consensus estimate. While the company’s EPS of around $2.62-$2.68 came in slightly below last year’s $2.81 (down 4.6%), this was anticipated given the extraordinary 40% beat Alphabet delivered in Q1 2025.

The critical driver: Google Cloud revenue accelerated to approximately $18.4 billion, up 50% year-over-year from $17.66 billion in Q4 2025, with operating margins expanding dramatically from 20% to 27% since October 2025. This margin expansion drove consensus EPS expectations upward from $2.46 to $2.73 in recent months. Alphabet shares rose 0.36% heading into the report, reflecting investor confidence in the company’s AI monetization strategy through Gemini and Cloud services.

The Sources

[1] Microsoft’s earnings report lands after stock’s worst quarterly performance since 2008 https://www.cnbc.com/2026/04/29/microsoft-msft-q3-earnings-report-2026.html
[2] Microsoft tops Q3 estimates, says AI business up 123% year over year https://finance.yahoo.com/sectors/technology/article/microsoft-tops-q3-estimates-says-ai-business-up-123-year-over-year-211358311.html
[3] Microsoft Revenues Jump 18 Percent to $82.9 Billion in FY26Q3 https://www.thurrott.com/microsoft/335513/microsoft-revenues-jump-18-percent-to-82-9-billion-in-fy26q3
[4] Microsoft Posts Strong Expansion in Azure Cloud Computing Unit https://www.bloomberg.com/news/articles/2026-04-29/microsoft-posts-strong-expansion-in-azure-cloud-computing-unit
[5] Meta looks to report fastest revenue growth since 2021 https://www.cnbc.com/2026/04/29/meta-q1-earnings-report-2026.html
[6] Meta Platforms (META) Q1 2026: EPS $10.44 vs $6.72 est; Revenue https://www.gurufocus.com/news/8828137/meta-platforms-meta-q1-2026-eps-1044-vs-672-est-revenue-5631b-vs-5545b-est-still-135-undervalued-gf-score-97100
[7] Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report https://finance.yahoo.com/markets/stocks/articles/meta-platforms-earnings-preview-watch-114500578.html
[8] Meta Raises Outlook for Capital Spending in 2026; Shares Slide https://www.bloomberg.com/news/articles/2026-04-29/meta-raises-outlook-for-capital-spending-in-2026-shares-slide
[9] Meta surges as revenue guidance outweighs big 2026 spending hike https://finance.yahoo.com/news/meta-stock-pops-revenue-guidance-215026394.html
[10] Wall Street Sees 29% Upside for Meta While Retail Investors Turn … https://finance.yahoo.com/news/wall-street-sees-29-upside-110500705.html
[11] Amazon Q1 earnings put the spotlight on AI spending and revenue https://finance.yahoo.com/sectors/technology/article/amazon-q1-earnings-put-the-spotlight-on-ai-spending-and-revenue-132251483.html
[12] Amazon Q1 2026 Earnings Preview: 29 April Results | IG … https://www.ig.com/en/news-and-trade-ideas/_amazon-q1-earnings-preview–can-aws-and-ai-drive-growth-amid-co-260424
[13] Amazon will share its Q1 2026 earnings on April 29 https://www.aboutamazon.com/news/company-news/amazon-earnings-q1-2026-report
[14] Amazon’s advertising business continues to gain traction https://www.marketwatch.com/livecoverage/amazon-earnings-stock-results-aws-guidance-ai/card/amazon-s-advertising-business-continues-to-gain-traction-8C9aCYQ1jndRaVpx0oak
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[19] Alphabet Q1 2026 Earnings Report – MarketBeat https://www.marketbeat.com/earnings/reports/2026-4-29-alphabet-inc-stock/
[20] Microsoft reports sinking Xbox revenue as its cloud business climbs https://www.theverge.com/tech/920785/microsoft-xbox-revenue-q3-2026-earnings
[21] Amazon.com, Inc. – Amazon.com Announces First Quarter Results https://ir.aboutamazon.com/news-release/news-release-details/2026/Amazon-com-Announces-First-Quarter-Results/
[22] Microsoft perks up as Q3 results top estimates (MSFT:NASDAQ) https://seekingalpha.com/news/4581662-microsoft-perks-up-as-q3-results-top-estimates
[23] Amazon set to report first-quarter earnings after the bell https://www.cnbc.com/2026/04/29/amazon-amzn-q1-earnings-report-2026.html
[24] OpenAI Rattles Big Tech as Microsoft (MSFT), Amazon (AMZN) and Alphabet (GOOGL) Face Earnings Test https://www.tipranks.com/news/openai-rattles-big-tech-as-microsoft-msft-amazon-amzn-and-alphabet-googl-face-earnings-test
[25] Amazon’s Oregon Footprint https://oregonbusiness.com/amazons-oregon-footprint/
[26] Microsoft Beats Fiscal Q3 Views On Cloud Computing, AI Strength https://www.investors.com/news/technology/microsoft-stock-msft-fiscal-q3-2026-earnings/
[27] Should You Buy, Sell or Hold Alphabet Stock Before Q1 Earnings? https://finance.yahoo.com/markets/stocks/articles/buy-sell-hold-alphabet-stock-181300754.html
[28] Amazon Earnings Preview: AI Momentum In Focus, But This Number … https://www.investors.com/news/technology/amazon-stock-q1-2026-earnings-preview/
[29] Amazon Stock Plunges As Much As 10% After EPS Miss – Forbes https://www.forbes.com/sites/tylerroush/2026/02/05/amazon-shares-plunge-7-as-it-plans-200-billion-in-spending-for-2026-far-more-than-expected/
[30] How Much Amazon Stock Is Expected to Move After Earnings https://www.investopedia.com/amazon-stock-expected-to-move-after-earnings-q1-2026-11955138
[31] What To Expect From Alphabet’s (GOOGL) Q1 Earnings https://www.financialcontent.com/article/stockstory-2026-4-28-what-to-expect-from-alphabets-googl-q1-earnings
[32] Buy Meta Stock After Strong Q4 Results & CapEx Hike? https://www.zacks.com/commentary/2825624/buy-meta-stock-after-strong-q4-results-capex-hike
[33] Amazon Earnings Preview: All Eyes on AWS As Investors Want AI … https://www.businessinsider.com/amazon-q1-earnings-preview-aws-amzn-stock-ai-capex-2026-4
[34] Amazon.com (AMZN) Earnings Date and Reports 2026 – MarketBeat https://www.marketbeat.com/stocks/NASDAQ/AMZN/earnings/
[35] Alphabet (GOOGL) Will Report Q1 Earnings on April 29. Here Is What to Expect https://www.tipranks.com/news/alphabet-googl-will-report-q1-earnings-on-april-29-here-is-what-to-expect
[36] Should You Buy, Sell or Hold Amazon Stock Before Q1 Earnings? https://www.zacks.com/stock/news/2908747/should-you-buy-sell-or-hold-amazon-stock-before-q1-earnings
[37] Meta Stock: What Wall Street Expects From Q1 Earnings Wednesday https://www.mexc.com/news/1058955
[38] Meta (META) Q1 Earnings: What To Expect https://finance.yahoo.com/markets/stocks/articles/meta-meta-q1-earnings-expect-100455133.html
[39] Alphabet Announces Date of First Quarter 2026 Financial Results … https://abc.xyz/investor/news/news-details/2026/Alphabet-Announces-Date-of-First-Quarter-2026-Financial-Results-Conference-Call-2026-18KYkWPpu7/default.aspx
[40] Alphabet Earnings Preview: Q1 2026 – Seeking Alpha https://seekingalpha.com/article/4894829-alphabet-earnings-preview-q1-2026
[41] Meta Q1 2026 Earnings Preview: Results Due 29 April … – IG https://www.ig.com/uk/news-and-trade-ideas/meta-q1-earnings-preview–can-advertising-growth-support-massive-260423
[42] Alphabet (GOOGL) Earnings: Latest Report … – Public Investing https://public.com/stocks/googl/earnings
[43] Meta to Announce First Quarter 2026 Results https://investor.atmeta.com/investor-news/press-release-details/2026/Meta-to-Announce-First-Quarter-2026-Results/default.aspx