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 optimistic 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 development on 14.3% larger gross sales.
Concerning AWS, an important a part of the discharge, our consensus estimate stands at $36.8 billion, reflecting 25.6% YoY development. An accelerating/decelerating development price amongst AWS stays the largest sentiment driver behind the post-earnings response, with the forecasted 25.6% development price 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 optimistic, 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 optimistic given MSFT’s 2026 underperformance to date. Double-digit development is anticipated for the tech large, with the quarterly estimates reflecting 17.6% earnings development on 16.2% larger 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 overwhelmed down on this enterprise given flat development charges over current 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 development price and a slight uptick from the prior interval’s 28% climb.
Picture Supply: Zacks Funding Analysis
Google Cloud Progress Stays Strong
Each EPS and gross sales expectations for Alphabet have been taken properly larger over current months, with the Zacks Consensus EPS estimate of $2.64 up 5.2% because the finish of January. Likewise, the $92.2 billion gross sales estimate is 4% larger 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 larger.
Regarding its Cloud outcomes, our consensus estimate for Google Cloud income stands at $18.4 billion, reflecting a rock-solid 49.6% YoY development price and even surpassing final interval’s 48% climb. The momentum inside Google Cloud has been an enormous driver behind its broader outperformance during the last yr, with its working earnings within the phase additionally seeing nice development.
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, equivalent to Apple and Meta.
The post-earnings response of all three shares above will practically all be pushed by their respective cloud outcomes, with traders more likely to reward accelerating development and punishing any indicators of slowdown or stagnation. MSFT has been within the highlight as of late on the event, with its YoY cloud development charges not pleasing traders and resulting in its weak efficiency all through 2026. Alphabet, however, has been rewarded, outperforming properly and reflecting the general strongest Magazine 7 performer during the last yr.
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