Upcoming Earnings this Week: Magnificent Seven and Other Tech Stocks

There’s a lot for investors to pay attention to this week.

On Wednesday, the Federal Reserve will announce its latest interest rate decision, while Thursday will see a pivotal meeting between US President Donald Trump and China’s President Xi Jinping.

In addition, this week may be the most important of this quarter’s earnings season, with a slew of reports from big tech, as well as a range of other tech and tech-adjacent stocks. Taken together, they will give a good sense of the state of the US economy, as well as its short-term prospects.

Let’s look at what investors are expecting from some of the big-ticket earnings calls.

Magnificent Seven…

Microsoft: Will AI Spending Pay Off?

Microsoft [MSFT] is forecast to post Q1 earnings of $3.65 per share, up 10.6% year-over-year, on revenue of $74.96bn, a 14.3% rise. Analysts have nudged EPS forecasts 0.2% higher in the past month, reflecting renewed optimism. The tech giant has beaten EPS estimates for eight straight quarters, suggesting analysts may still be underpricing its artificial intelligence (AI) edge. Capital expenditure is set to surge again as Microsoft expands AI infrastructure, with Bloomberg Intelligence expecting higher spend amid capacity constraints. Over $23bn in recent contracts underscores strong enterprise demand for Copilot and Azure AI.

Amazon: Is AWS Ceding Ground?

Analysts are expecting Amazon [AMZN] to report revenue of $177.8bn, EPS of $1.58 and operating income of $23.7bn — up 12%, 10% and 4% year-over-year, respectively. Despite projected 2025 revenue topping $700bn, growth has slowed to single digits, averaging 11% since 2022. AWS now generates 18% of total revenue but contributes around 40% of operating income. The point, writes Brian Gilmartin in Seeking Alpha, is that “Amazon today is basically Walmart with a cloud and emerging AI business attached to it”. However, Amazon’s cloud arm lost 2% market share to Microsoft Azure and Alphabet’s [GOOGL] Google Cloud in Q2, with operating margins narrowing from 35.5% to 32.9%, fueling investor caution ahead of earnings.

Alphabet: Can the Search Giant Survive AI?

“One perennial market worry about Alphabet,” Zacks analysts wrote recently, “is the outlook for the search business in the emerging AI world”. July’s results went some way towards assuaging such worries, but investors are might well be a little jumpy ahead of this week’s results. Analysts are expecting 13.3% year-over-year revenue growth and a 7.9% EPS rise — signaling strong AI-driven momentum but higher costs. Increased R&D spending is seen as necessary to sustain market leadership. Earnings revisions remain broadly positive, and sentiment is bullish, supported by Alphabet’s solid track record: nine EPS beats and just one revenue miss over the past ten quarters.

Apple: Towards a Service Model?

Apple [AAPL] stands apart from the other magnificent seven stocks reporting this week as the only one not leading or heavily investing in AI infrastructure. Wall Street expects Q4 earnings of $1.77 per share, up 8% year-over-year, on $102bn in revenue, up 7.5%, driven partly by early iPhone 17 sales. Consensus implies a 12.7% quarter-over-quarter EPS rise and FY EPS of $7.40. Apple’s market cap could reach $4trn by fiscal year-end. Envision Research has predicted that Apple “will eventually become a service business instead of a hardware business”; this week’s report may show further progress on this front.

Meta: Will AI Strategy Stand Up to Scrutiny?

Meta [META] reports Q3 earnings Wednesday, with AI progress and spending under scrutiny. Analysts are bullish: 20 of 21 surveyed by Visible Alpha rate it a ‘buy’, with an $873 average price target implying 18% upside from the October 24 close. Meta’s expanded capex this year for data centers and AI talent sets a high bar. Bank of America forecasts $50bn in revenue, slightly above the $49.54bn Street consensus, while EPS is projected at $6.71, up year-over-year but down quarter-over-quarter. Layoffs and hiring freezes hint at cost pressures, testing investor confidence in Meta’s AI-driven growth strategy.

…And Friends

Alongside the big beasts, a range of tech stocks are reporting earnings.

It will be a big week for biotech, for instance. Biogen [BIIB], Eli Lilly [LLY], AbbVie [ABBV] and GeneDx Holdings [WGS] have all shown mixed but generally steady performance heading into this week’s earnings.

Biogen’s stock has experienced slight declines, reflecting cautious investor sentiment, though the company remains a key player with a broad portfolio.

Eli Lilly has shown steady growth, bolstered by its diabetes and obesity drug sales, and investors will focus on pipeline developments, new drug approvals and R&D milestones.

AbbVie has experienced slight declines, but its diversified portfolio and strong presence in immunology and oncology provide stability.

GeneDx Holdings has shown minor increases, reflecting stable operations; analysts will be looking for revenue growth from genetic testing services and strategic partnerships.

Elsewhere, in the broader tech space, Cadence Design Systems [CDNS], Bloom Energy [BE], Novartis [NVS], Seagate Technology [STX], Visa [V], eBay [EBAY], ServiceNow [NOW] and Cloudflare [NET] have all shown steady performance heading into this week’s earnings.

Cadence Design Systems continues to benefit from strong adoption of its electronic design automation tools, with analysts looking for growth in AI-related product usage.

Bloom Energy surged on news of major AI data center partnerships, and investors will focus on revenue impact and margins from these contracts.

Novartis remains steady with pipeline and emerging market growth in focus.

Seagate Technology benefits from strong demand for data storage, with guidance expected on AI-related storage and cloud deployments.

Visa shows consistent performance, and payment volume trends will be key to monitor.

eBay remains stable with attention on marketplace growth and fee revenue.

ServiceNow and Cloudflare are both positioned to report on enterprise adoption of cloud and security solutions, with subscription revenue growth and network expansion expected to be in focus.