As earnings season ramps up, four of the Magnificent 7, Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA), are among more than 100 S&P 500 companies reporting results this week.
Profits for the Magnificent 7 are expected to climb about 18% in 2026, the slowest pace since 2022 and not much better than the 13% rise projected for the other 493 companies in the S&P 500, according to data compiled by Bloomberg Intelligence.
Amazon (AMZN) and Nvidia (NVDA) won’t report this week, with earnings expected in early and late February, respectively, leaving Alphabet (GOOGL), Meta (META), Microsoft (MSFT), Tesla (TSLA), and Apple (AAPL) to carry the AI story meanwhile.
Notably, S&P 500 operating margins have surged due to tech sector dynamics, but this is underpinned by artificial cycles in the AI ecosystem. “Eventually the markets are going to be slammed to a reversion to the mean move as they have been in previous stock market bubbles,” analyst SA analyst Bret Jensen wrote.
On the other hand, based on megatrend themes, significant competitive advantages, and earnings growth trajectory, Blue Harbinger expects the group of “Magnificent 7” megacap stocks, including Alphabet, to continue outperforming the S&P 500 index.
“Ongoing AI momentum, backlog monetization, and capex payoffs will likely continue to drive outsized Mag 7 returns, as recent heavy capex spending (by essentially all of them) is an indication of healthy expected growth ahead.”
Below are the market’s expectations for each of the Magnificent Seven stocks:
- Tesla (TSLA) — January 28. Expected to report Q4 revenue of $24.8B, EPS of $0.45.
- Microsoft (MSFT) — January 28. Expected to report EPS of $3.92 and revenue of $80.28B.
- Meta Platforms (META) — January 28. EPS of $8.18 is expected on revenue of $58.46B.
- Apple—January 29. GAAP earnings per share are expected at $2.67 on revenue of $138.52B.
- Alphabet (GOOGL) – February 4. The consensus EPS estimate is $2.64 on revenue of $111.44B.
- Amazon (AMZN) — February 5. EPS of $1.94 expected on revenue of $211.17B.
- Nvidia (NVDA) – February 25. EPS of $1.52 per share expected, on revenue of $65.55B.
Here is a quick recap of the performance and sentiment around the stocks:
Tesla (TSLA) faces global sales pressure, with declines in China and Europe. Shares fell 2% in the Oct–Jan period and are up just 8% over the past year. Analysts are split on Tesla (TSLA): some believe the stock is undervalued based solely on its auto business, while some are bearish due to persistent overvaluation and slow progress on autonomy and robotics.
Microsoft (MSFT) carries a Strong Buy consensus, with a $616 average price target implying 28.6% upside. Despite slow Copilot adoption, MSFT’s cloud business remains resilient and is not necessarily dependent on AI application uptake, SA analyst Michael Del Monte said.
Apple (AAPL) rose about 6% in the October–December quarter and is expected to report record iPhone sales in fiscal Q1 on strong iPhone 17 upgrades and improving China demand. However, rising memory costs (up 171% y/y) and tariff risks pose margin and pricing challenges for the rest of FY26.
Alphabet (GOOG) (GOOGL) has delivered strong gains over the past year (+69%), and one investment group warns selling now could be a mistake. With its current momentum, Q4 2025 is a critical point, as it will provide insights on how the management views 2026 and their approach to the year, especially on key issues like a continuation of heavy CapEx outlay, among other key aspects.
Meta Platforms (META) shares are down about 7% over six months, reflecting investor concerns over rising AI capital expenditure, Reality Labs losses, and a muted response to the Llama 4 model, despite a solid ad business. The social media giant, which underperformed the market in 2025, has outlined a massive $600B in capital expenditures through 2028 to build out artificial intelligence-related infrastructure, such as data centers, in the U.S.
Amazon.com’s (AMZN) underwhelming stock performance lately, on the other hand, could change course in 2026. Questions regarding long-term AMZN profitability and return on capital of AI investments remain, but this is less likely to be the main topic in 2026, SA analyst Vladimir Dimitrov said. The e-commerce giant is in the spotlight of the grocery sector after it announced its plans to close its Amazon Fresh and Amazon Go storefronts to prioritize investment in growth areas.
Nvidia (NVDA), the AI powerhouse in the interim, delivered another exceptional year, rising roughly 39% in 2025. Adding to investor optimism, China has reportedly approved the import of the first batch of H200, Nvidia’s (NVDA) second most powerful AI chip. NVDA, now the world’s most valuable publicly traded company, holds a “Hold” rating from Seeking Alpha’s quant system, while Wall Street analysts rate it a Strong Buy, giving it an A+ for profitability and an A for growth.
Magnificent Seven Focused ETFs: (MAGS), (MAGX), (QQQU), and (QQQD).