The 2026 Q1 earnings cycle is formally over for the beloved Magnificent Seven group following the discharge of NVIDIA’s outcomes. It was one other interval of rock-solid progress for the group, a development that we’ve been accustomed to for a number of years now.
NVIDIA NVDA and Alphabet GOOGL delivered among the largest highlights from the bunch, with Google Cloud gross sales displaying bullish acceleration whereas NVIDIA’s Knowledge Middle outcomes once more broke information.
NVIDIA Knowledge Middle Breaks Data Once more
NVIDIA once more posted sturdy progress in its newest launch, with adjusted EPS of $1.87 greater than doubling year-over-year alongside file gross sales of $81.6 billion that grew 85% from the year-ago interval.
As anticipated, Knowledge Middle outcomes all through the interval confirmed that everyone nonetheless desires their arms on the magical GPUs. Knowledge Middle gross sales of $75.2 billion once more mirrored a file, up 92% year-over-year.
Under is a chart illustrating its Knowledge Middle gross sales on a quarterly foundation.
Picture Supply: Zacks Funding Analysis
Close to-term EPS revisions proceed to point out bullishness because of the favorable setting, a development that the corporate has loved for fairly some time now. Whereas shares have slowed a bit relative to what we’ve seen over current years, the fact stays that the corporate’s outlook stays sturdy.
Picture Supply: Zacks Funding Analysis
Larger-than-expected CapEx forecasts have been an everyday theme throughout the AI buildout, with firms wanting to get their arms on the magical GPUs and different associated {hardware} that NVDA gives.
Google Cloud Development Accelerates
Alphabet posted a powerful double-beat relative to our consensus estimates, crushing our EPS estimate by greater than 90% and posting a 2.7% gross sales shock. Earnings and gross sales have been up 22% and 82%, respectively, with the inventory’s response post-earnings additionally extremely constructive.
Importantly, Google Cloud income totaled $20.0 billion, crushing our estimate and reflecting a rock-solid 62.7% YoY progress fee. The expansion acceleration is exactly what the market wished to see, with the corporate absolutely clearing the essential hurdle.
Under is a chart illustrating cloud revenues on a quarterly foundation.
Picture Supply: Zacks Funding Analysis
Like NVDA, the EPS outlook stays bullish throughout the board for the Magazine 7 member, an enormous constructive regarding its share momentum.
Picture Supply: Zacks Funding Analysis
The cloud acceleration was an enormous constructive for Alphabet by way of market sentiment, as cloud progress charges have typically dictated post-earnings reactions lately. We noticed this development at play within the Microsoft MSFT response, whose cloud progress fee didn’t impress the market. Whereas Microsoft has famous that its cloud outcomes have been impacted by capability constraints, the fact stays that Alphabet has grow to be essentially the most polarizing cloud participant on the market, with its outperformance relative to Microsoft underpinning the event.
Backside Line
The 2026 Q1 earnings season is over for the Magnificent Seven group, whose outcomes once more broadly remained sturdy, displaying large year-over-year progress. NVIDIA NVDA and Alphabet GOOGL stole many of the positivity, with GOOGL crushing cloud expectations and NVIDIA once more reconfirming simply how highly effective the AI frenzy has grow to be.
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