The four Magnificent Seven tech giants — Microsoft, Amazon, Alphabet, and Meta — released their Q1 2026 earnings after the bell on April 29. All four beat Wall Street estimates on both revenue and earnings per share (EPS). But post-market trading showed a split, with investors zeroing in on the cost and payoff of massive AI capital expenditures (capex).
Microsoft: Azure Cloud Shines, OpenAI Investment Dents EPS
Microsoft posted $82.89 billion in revenue (up 18% YoY), beating the $81.3 billion consensus. EPS came in at $4.27 (up 23% YoY). Intelligent Cloud, especially Azure, delivered strong momentum, with overall cloud gross margin at 68%. However, the company's large investment in OpenAI trimmed EPS by roughly $0.41, causing stock volatility after hours.
Alphabet: Google Cloud Revenue Surges 63%
Alphabet reported $109.9 billion in revenue (up 22% YoY) and EPS of $5.11 (up 82% YoY). The standout was Google Cloud, with revenue soaring to $20 billion, up 63% YoY, signaling robust demand for enterprise AI solutions on GCP. Core advertising grew 19% in Search and 11% in YouTube. Gross margin expanded to 36.1%.
Amazon: AWS and Retail Drive Strong Results
Amazon's revenue hit $181.5 billion (up 17% YoY), well above the $177.2 billion forecast. EPS jumped from $1.59 a year ago to $2.78. AWS and AI infrastructure investments, combined with solid retail performance, powered the beat. Future capital spending will stay heavily focused on AI infrastructure.
Meta: Steady Ad Revenue but Capex Guidance Spooks Market
Meta delivered $56.31 billion in revenue (up 33% YoY) and EPS of $10.44 (including an $8 billion tax benefit; adjusted EPS ~$7.31). Family daily active people reached 3.56 billion, ad impressions grew 19%, and average ad price rose 12%. But the company raised its 2026 full-year capex guidance to $125–145 billion (from $115–135 billion) to accelerate AI and metaverse efforts. The huge spending plan triggered a selloff in Meta's stock after hours.
AI and cloud revenue growth is clearly real, but the combined hundreds of billions in capex across these four giants is testing investor patience. Apple's earnings report is due next on May 1.