On the evening of April 29 ET, four members of the MAG-7 (MSFT, AMZN, META, GOOGL) reported earnings simultaneously. Cloud growth, AI infrastructure capex, and monetization cadence formed the core narrative triangle—combined 2026 capex guidance for the four has already exceeded $700 billion, the largest collective bet in Big Tech history. But market reception was mixed: MSFT and GOOGL got modest nods, AMZN faced mild pressure, and META slumped after hours on yet another capex increase.
01 · MICROSOFT: Azure Re-Accelerates
FY26 Q3 · AI ARR Breaks $37B
Microsoft's fiscal Q3 2026 (ended March 31, 2026) beat consensus across the board. Revenue hit $82.89B vs. estimates of $81.39B; adjusted EPS was $4.27 vs. $4.06. GAAP net income was $31.78B, up 23% YoY. The dual-engine cloud + AI narrative continued to deliver.
The quarter's key signal: Azure growth accelerated further to 40% from 39% last quarter, easing fears of a cloud slowdown. Total Microsoft cloud revenue surpassed $54B for the first time, with Intelligent Cloud segment revenue at $34.68B, up 30% YoY. AI monetization is gaining traction: AI annualized revenue (ARR) exceeded $37B, up 123% YoY; Copilot's weekly enterprise engagement is now on par with Outlook—a critical inflection point signaling the transition from tool to embedded .
Copilot's weekly engagement is now on par with Outlook—this is one of the strongest product penetration signals we've seen.
—— SATYA NADELLA · CEO · MICROSOFT
CFO Amy Hood guided FQ4 revenue of $86.7B–$87.8B (midpoint $87.25B), slightly above StreetAccount's $85.3B. The market reacted relatively positively. But full-year capex guidance was raised to $190B, up ~61% from the prior year—driven partly by memory price increases, and underscoring the tension between massive AI infrastructure spending and the monetization timeline. Non-recurring investment gains from OpenAI (a ~$7.6B one-time positive impact on net income last quarter) also remain a variable to watch.
02 · AMAZON: AWS Hits a 15-Quarter High
2026 Q1 · Custom Chip ARR Tops $20B
Amazon's Q1 2026 revenue was $181.52B, above analyst estimates of $177.3B, up 17% YoY; adjusted EPS of $2.78 crushed expectations of $1.64. AWS growth accelerated to 28%, its highest in 15 quarters—the quarter's brightest spot. However, heavy capex and slightly below-optimistic advertising expectations sent the stock down more than 3% after hours.
Excluding seasonal peaks from the holiday quarter, core structural metrics remained strong. AWS's 28% growth drove the beat, with annualized revenue now ~$150B. Amazon's custom chip business (Graviton, Trainium, Nitro) hit an annualized run rate of $20B+ with triple-digit YoY growth, reinforcing Amazon's differentiation in the AI infrastructure race. Advertising revenue grew 24% YoY, well above the 21.2% consensus, with TTM revenue exceeding $70B—now firmly the second-largest profit engine behind AWS.
AWS is growing at its fastest rate in 15 quarters, and it's 28% on a very large base.
—— ANDY JASSY · CEO · AMAZON
Management guided Q2 revenue of $194B–$199B (midpoint $196.5B, implying +16%–19% YoY) and operating income of $20B–$24B, a healthy range. Jassy expressed "high confidence" in monetization of 2026 AWS capex, noting that customers have made clear commitments for a significant portion of capacity, which should yield "attractive" operating margins and returns. But key variables—global trade policy uncertainty on retail supply chains, AI data center mega-capex pressure on free cash flow (property and equipment spending hit $44.2B in Q1 alone), and macro consumer slowdown transmission to retail—need more quarters to unpack.
03 · META PLATFORMS: Strongest Revenue Growth Since 2021
2026 Q1 · But Another Capex Hike Sends Stock Lower After Hours
Meta's Q1 revenue was $56.31B, up 33% YoY—the strongest quarterly growth since 2021; adjusted EPS of $7.31 beat consensus of $6.79. GAAP net income was $26.8B—but that includes a one-time tax benefit of ~$8B related to the "One Big Beautiful Bill" and Treasury Notice 2026-7; ex that, core EPS was ~$7.31. Daily active people (DAP) reached 3.56B, up 4% YoY, with a slight sequential dip due to internet disruptions in Iran and WhatsApp access restrictions in Russia.
Revenue declined ~6% sequentially, typical post-holiday seasonality. More noteworthy: despite macro uncertainty, ad impressions grew 19% YoY and price per ad grew 12% YoY, both accelerating—underscoring Meta's strong pricing power and healthy inventory. Generative AI is reshaping the ad production chain: AI-powered creative tools continue to penetrate, helping advertisers boost content velocity and personalization, a key driver of ad inventory expansion.
The quarter's most important product milestone was the April 8 launch of Muse Spark—the first model from Meta's Superintelligence Labs (MSL), marking the outcome of a "nine-month rebuild" of Meta's AI stack after Llama 4's lukewarm reception. Muse Spark natively supports multimodality, tool calling, and visual chain-of-thought, with a Contemplating Mode enabling parallel orchestration. The initial market reaction was positive, sending Meta shares up ~6% on the day.
Our formula has always been: build experiences that reach billions of people, then monetize at scale.
—— MARK ZUCKERBERG · CEO · META
Q2 revenue guidance: $58B–$61B, midpoint implying ~25% YoY growth. Full-year 2026 capex guidance was raised from $120B–$135B to $125B–$145B, driven by component price increases and additional data center construction costs. On this news, Meta fell ~6%–7% after hours—market fears that capex pace far outpaces ad monetization. On one hand, ad revenue growth is strong and sustainable; on the other, AI infrastructure overspending will pressure free cash flow in the near-to-medium term—FCF already fell 19% YoY to $43.6B in 2025, and long-term debt doubled to $58.7B. The capex return verification window remains wide and uncertain, the core tension in Meta's investment thesis today.
04 · ALPHABET: Cloud Growth at 63% Overtakes Microsoft
2026 Q1 · Net Income +81% YoY
Alphabet's Q1 revenue was $109.9B, up 22% YoY; GAAP net income surged 81% to $62.58B from $34.54B a year ago; operating income was $39.69B. Google Cloud stole the show with 63% growth—quarterly revenue exceeding $20B for the first time ($20.03B), with backlog nearly doubling sequentially to $462B.
Google Cloud accelerated from 48% last quarter to 63%, well above the ~52% consensus—the most compelling growth acceleration in Big Tech this quarter. GenAI model-based product revenue grew nearly 800% YoY; enterprise AI solutions became the cloud's #1 growth engine for the first time. Search revenue, boosted by AI Overviews, grew 19% YoY, setting a new query volume record and alleviating the biggest market concern of the past year—that AI-enhanced search would dilute ad monetization. Gemini API usage jumped 60% sequentially, signaling deepening developer ecosystem traction.
We're currently constrained by compute capacity. If we could meet demand, cloud revenue would have been even higher.
—— SUNDAR PICHAI · CEO · ALPHABET
Capex direction is clear: Q1 2026 capex alone was $35.7B, with full-year guidance raised from $175B–$185B to $180B–$190B—management's commitment to scaling AI compute is unambiguous. Together with Microsoft's $190B and Meta's $125B–$145B, this completes the Big Tech "AI arms race" panorama. Key risks to monitor in coming quarters: compute supply constraints capping cloud revenue, ongoing US and EU antitrust pressure on Search and advertising, and the long-term impact of generative AI on traditional search traffic structure—short-term data shows no significant diversion, but the medium-to-long-term evolution warrants close tracking.
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Disclaimer: This article is based on publicly available earnings releases, conference call transcripts, and reports from CNBC, Yahoo Finance, etc., as of April 29, 2026 after hours. It does not constitute investment advice. Please refer to each company's official Form 10-Q/10-K for all data. Markets are risky; invest responsibly.
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