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Two of the world’s most valuable companies just reported earnings, kicking off what’s expected to be another strong earnings season for America’s tech giants.
Tesla (TSLA) and Google-parent Alphabet (GOOGL) reported shortly after the closing bell, the first of the Magnificent 7 to release their second-quarter results. Dow component International Business Machines (IBM), enterprise software maker ServiceNow (NOW) and chipmaker Texas Instruments (TXN) also reported this afternoon.
The results could inject fresh enthusiasm into the sector after a pullback in recent weeks, or deepen its slide amid worries about AI stock valuations.
Alphabet shares were down more than 4% in recent extended trading despite results that topped Wall Street expectations on the top and bottom lines. Tesla stock fell 3% as the EV maker’s profit came in well short of analysts’ estimates.
Follow along below for all the details from the earnings reports and the market reaction.
JULY 22, 2026 AT 09:20 PM GMT
ServiceNow Raises Its Outlook as Earnings Top Estimates
Shares of ServiceNow climbed 6% in extended trading after the enterprise platform raised its outlook and reported quarterly earnings that topped analysts’ estimates.
ServiceNow said it now expects full-year subscription revenue of $15.76 billion to $15.78 billion, up from $15.74 billion to $15.78 billion previously.
The company posted adjusted earnings per share of 90 cents on revenue that jumped 22.5% year-over-year to $3.99 billion for the second quarter, above analysts’ projections compiled by Visible Alpha, as subscriptions surged.
CEO Bill McDermott called the results “exceptional” and said they “solidify our position as the fastest-growing major enterprise software and cybersecurity company.”
JULY 22, 2026 AT 09:20 PM GMT
YouTube Ad Sales Boosted by World Cup
Alphabet CEO Sundar Pichai says that “people turn to YouTube for major world events.” The World Cup is one, and it evidently helped the tech giant sell some ads.
Alphabet reported second-quarter Google Services revenue of $94.5 billion, aided by 13% year-over-year growth in YouTube ads.
Pichai, who also is Google’s chief executive, said that YouTube registered “over 1.7 billion unique viewers watching World Cup-related videos during the FIFA World Cup 2026.”
(It should be noted that Alphabet’s second quarter ended June 30, while the World Cup ran from June 11 until July 19, meaning some of the ad sales will be counted in the company’s Q3 results.)
JULY 22, 2026 AT 08:59 PM GMT
IBM Lowers Its Outlook as Customers Cut Back on Software
International Business Machines (IBM) lowered its full-year outlook, saying it now expects revenue growth in the range of 4% to 5%. Back in April, the company had called for over 5%.
IBM posted adjusted earnings of $2.93 per share on revenue of $17.16 billion for the second quarter, well below analysts’ estimates compiled by Visible Alpha.
The news comes a week after the company warned it “faltered” in the quarter as some of IBM’s customers cut back on software to focus spending on servers and memory products, sending its shares down 25% in a single session and rattling other stocks in the sector.
Shares of IBM were up 2% in extended trading Wednesday following the release.
JULY 22, 2026 AT 08:47 PM GMT
Texas Instruments Shares Fall Despite Strong Results
Shares of Texas Instruments (TXN) pulled back in after-hours trading Wednesday even though the chipmaker reported better-than-expected second-quarter results and issued a rosy current-quarter outlook.
The Dallas-based firm, whose semiconductors are used in a variety of electronic devices, reported second-quarter earnings of $2.14 per share on revenue that increased 23% year-over-year to $5.46 billion. Analysts polled by Visible Alpha had called for $1.94 per share and $5.26 billion, respectively.
For the third quarter, the company—historically known for its calculators—said it expects EPS between $2.23 and $2.57 and revenue between $5.65 billion and $6.15 billion. Analysts are looking for $2.17 and $5.63 billion.
Shares of Texas Instruments were down 3% in recent extended trading. Through Wednesday’s close of regular trading, the stock had gained 70% since the start of the year.
JULY 22, 2026 AT 08:35 PM GMT
Tesla Says Cybercab, Semi Truck, Optimus on Schedule
With Tesla’s earnings miss unlikely to ease uncertainty around the company’s transformation, the EV maker sought to assure investors its newest product lines are still on schedule.
Tesla said in its presentation that it has begun production of its Cybercab, with its Semi truck still on track for production later this year.
First-generation production lines for Optimus, the company’s humanoid robot that CEO Elon Musk has previously suggested could eventually drive most of the company’s value, “are being installed in anticipation of production in 2026,” the company said.
JULY 22, 2026 AT 08:32 PM GMT
Tesla’s Capital Expenditures More Than Doubled in Q2
The EV maker said its capital expenditures surged 142% to $5.79 billion in the quarter as it doubled down on new technologies.
“Tesla is in its largest and most exciting period of investment,” the company wrote. “We’ve never been more optimistic about the future.”
JULY 22, 2026 AT 08:27 PM GMT
Alphabet Boosted by 82% Google Cloud Revenue Jump
Analysts expected Alphabet’s Google Cloud revenue to have surged 65% year-over-year in the second quarter. The tech giant easily surpassed the mark.
Alphabet reported an 82% jump in Google Cloud revenue—a key sign of demand for AI compute—to $24.77 billion, comfortably surpassing the $22.50 billion expectation of analysts polled by Visible Alpha.
The unit revenue gain was “led by an increase in Google Cloud Platform (GCP) across enterprise AI Solutions and enterprise AI Infrastructure, as well as core GCP services,” Alphabet said, adding Google Cloud had a backlog of $514 billion
JULY 22, 2026 AT 08:21 PM GMT
Tesla Misses Estimates as AI Investments Squeeze Profits
Tesla reported adjusted earnings of 33 cents per share, down 18% year-over-year and well below the 55 cents per share analysts surveyed by Visible Alpha called for on average. The EV maker’s second-quarter revenue fell 26% to $28.24 billion, though that figure came ahead of the consensus projection of $26.69 billion.
Lower average selling prices, the expiration of EV tax credits, and higher costs driven by the company’s investments in AI and R&D projects all squeezed profits, the company said in Wednesday’s release.
Tesla stock, which finished Wednesday about 1% lower, was down another 3% in after-hours trading.
JULY 22, 2026 AT 08:12 PM GMT
Alphabet Tops Wall Street’s Profit, Revenue Expectations
Alphabet (GOOGL) reported second-quarter profit and revenue above analysts’ estimates.
The Mountain View, Calif.-based tech giant posted earnings of $9.11 per share on revenue that increased 24% year-over-year to $119.80 billion. Analysts surveyed by Visible Alpha expected $2.90 per share and $117.20 billion, respectively.
Alphabet’s capex was $44.92 billion in the quarter, slightly above the expected $44.66 billion.
Alphabet shares were up less than 1% after the results. They closed Wednesday’s regular session at around $342, up about 10% since the start of the year but roughly 15% lower than their May peak.
Read the company’s press release here.
JULY 22, 2026 AT 08:00 PM GMT
How to Listen to Alphabet and Tesla Earnings Calls
Alphabet’s conference call can be streamed on YouTube, starting at 4:30 p.m. ET.
Tesla’s call is set to begin an hour later, and can be streamed here.
JULY 22, 2026 AT 07:21 PM GMT
How Much Alphabet Stock Is Expected to Move
Alphabet shares are expected to move more than 5% in either direction by the end of the week, according to options pricing.
An move of that size would push the stock up to around $365, approaching a high set in May, or down to $326.
Alphabet shares have gained about 10% since the start of 2026, in line with the performance of the S&P 500.
JULY 22, 2026 AT 06:11 PM GMT
Investors Looking For Insights on Tesla’s AI Initiatives
Tesla is expected to report a 19% increase in revenue over the second quarter of last year, as the EV maker continues sharpening its focus on AI.
The Elon Musk-led company is expected to report revenue of $26.29 billion for the latest quarter, along with adjust earnings 55 cents per share, up 15 cents from a year ago. Earlier this month, Tesla reported second-quarter delivery number that came in well above analysts’ estimates.
Morgan Stanley analysts said they see Tesla turning in a solid second quarter, but that investors will likely be more focused on updates to long-term projects. The analysts said the “key investor debate remains unchanged: can Robotaxi and Optimus progress quickly enough to justify an accelerating AI investment cycle?”
Meanwhile, speculation continues about a potential merger with SpaceX (SPCX), Elon Musk’s rocket, connectivity and AI company, which went public last month to great fanfare but has seen its share price sink in recent weeks.
JULY 22, 2026 AT 04:53 PM GMT
Google Cloud Revenue Is Expected to Have Soared in Q2
Wall Street analysts predict that Alphabet will report revenue growth of about 20% for the second quarter versus the like period last year, amid continued huge growth in its Google Cloud business.
Alphabet is expected to report earnings of $2.90 per share on revenue of $117.19 billion, according to analysts’ estimates compiled by Visible Alpha. Revenue in its Search business is seen coming in at $63.29 billion, while Google Cloud revenue, a key sign of demand for AI compute, is projected to have risen 65% to $22.50 billion. The projected revenue growth is similar to what the company recorded in the first quarter.
Analysts from HSBC recently wrote that they will be looking for insights into whether customers are looking to manage their AI expenses by using lower-cost models, along with how the company sees rising hardware prices affecting its spending plans.
JULY 22, 2026 AT 03:51 PM GMT
Will Earnings Get Mag 7 Stocks Out of Their Rut?
The Magnificent Seven stocks may be more “Lag 7” than “Mag 7” this year, but their profits are still pretty magnificent.
The Mag 7—Nvidia (NVDA), Alphabet (GOOG), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Tesla (TSLA)—have grown faster than the rest of the S&P 500—or the “Other 493”—in every quarter since the end of 2022, and estimates suggest that was likely the case last quarter, too. In the coming weeks, the Mag 7 are expected to report earnings grew about 31% in the second quarter, a slowdown from 63% in Q1 but still ahead of the Other 493’s 23% growth.
Tesla and Google-parent Alphabet will be the first of the group to post Q2 results when they report after the bell Wednesday. Analysts expect the search and cloud computing giant had another strong quarter, with revenue projected to increase about 20%, driven by a 65% increase in cloud revenue. The report will set expectations for cloud computing competitors and fellow Mag 7 members Microsoft and Amazon, both of which are slated to report next week.
Mag 7 stocks accounted for the vast majority of the S&P 500’s rise in recent years, but the group has lagged the broader market in 2026 amid uncertainty about the return on their huge AI investments. The Roundhill Magnificent Seven ETF (MAGS) is up less than 2% since the start of the year, trailing the S&P 500’s 10% return.
The combination of stock weakness and earnings strength has many of the Mag 7 stocks trading at relatively undemanding valuations. “I don’t think there’s a problem paying 24 times forward earnings for a company that can grow high-margin revenue at roughly 20%,” said David Miller, CIO at Catalyst Funds, of Alphabet on Tuesday. “From a price-to-earnings-growth perspective, those numbers work.”
But the Mag 7’s earnings growth may not be Wall Street’s focus when they report in the coming weeks. Revenue and earnings “are likely to not matter as much as the amount of capital spending completed in the quarter and the guide for the rest of the year,” wrote Wolfe Research analysts on Tuesday. The hyperscalers—Alphabet, Microsoft, Amazon, Meta, and Oracle (ORCL)—reported strong results across the board last quarter, but their stocks mostly languished as investors focused on capex increases.
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