The 2026 Q1 earnings season faces its busiest week but, with all kinds of notable corporations on deck to report. Headlining the docket is a bunch of Magnificent 7 members whose sentiment is pushed by cloud outcomes, particularly Alphabet GOOGL, Microsoft MSFT, and Amazon AMZN.
Of the trio, Amazon and Alphabet have outperformed properly relative to the S&P 500, whereas Microsoft shares have lagged YTD, as proven beneath.
Picture Supply: Zacks Funding Analysis
Amazon Net Companies (AWS)
EPS revisions for the upcoming launch have proven a little bit of negativity, with the present $1.61 Zacks Consensus EPS estimate down roughly 6% during the last a number of months. Income revisions have remained extra constructive with the $177.5 billion estimate up by a modest 1.2% over the identical timeframe. Progress is anticipated to be delivered once more, with the estimates suggesting 1.3% YoY earnings progress on 14.3% greater gross sales.
Concerning AWS, a very powerful a part of the discharge, our consensus estimate stands at $36.8 billion, reflecting 25.6% YoY progress. An accelerating/decelerating progress fee amongst AWS stays the most important sentiment driver behind the post-earnings response, with the forecasted 25.6% progress fee for the upcoming launch beating out the prior interval’s 23.6% YoY climb modestly.
Picture Supply: Zacks Funding Analysis
Microsoft Wants Acceleration
EPS revisions for Microsoft’s launch have been constructive, with the present $4.07 Zacks Consensus EPS estimate up by a slight 1.2% during the last a number of months. Income revisions have remained flat, although the stable-to-positive revisions we’ve seen throughout each the highest and backside traces are a pleasant constructive given MSFT’s 2026 underperformance to this point. Double-digit progress is anticipated for the tech big, with the quarterly estimates reflecting 17.6% earnings progress on 16.2% greater gross sales.
Its Clever Cloud phase, which incorporates Azure, will once more be the large focus regarding its post-share response. Sentiment has largely been crushed down on this enterprise given flat progress charges over latest intervals, although administration has famous that the stagnation has principally been as a result of capability constraints. Our consensus estimate for Clever Cloud income stands at $34.3 billion, suggesting a 28.5% YoY progress fee and a slight uptick from the prior interval’s 28% climb.
Picture Supply: Zacks Funding Analysis
Google Cloud Progress Stays Sturdy
Each EPS and gross sales expectations for Alphabet have been taken properly greater over latest months, with the Zacks Consensus EPS estimate of $2.64 up 5.2% for the reason that finish of January. Likewise, the $92.2 billion gross sales estimate is 4% greater than it was for a similar timeframe. Earnings are forecasted to fall 6% YoY, whereas gross sales are anticipated to see a robust 20.5% cost greater.
Regarding its Cloud outcomes, our consensus estimate for Google Cloud income stands at $18.4 billion, reflecting a rock-solid 49.6% YoY progress fee and even surpassing final interval’s 48% climb. The momentum inside Google Cloud has been a giant driver behind its broader outperformance during the last 12 months, with its working revenue within the phase additionally seeing nice progress.
Picture Supply: Zacks Funding Analysis
Backside Line
The 2026 Q1 earnings season has picked up significantly, with three Magnificent 7 corporations with notable cloud publicity – Alphabet GOOGL, Microsoft MSFT, and Amazon AMZN – all on the docket this week. There are different members of the beloved bunch on the docket as effectively, comparable to Apple and Meta.
The post-earnings response of all three shares above will almost all be pushed by their respective cloud outcomes, with traders more likely to reward accelerating progress and punishing any indicators of slowdown or stagnation. MSFT has been within the highlight as of late on the event, with its YoY cloud progress charges not pleasing traders and resulting in its weak efficiency all through 2026. Alphabet, then again, has been rewarded, outperforming properly and reflecting the general strongest Magazine 7 performer during the last 12 months.
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