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Two of the world’s most valuable companies are set to report earnings later today, kicking off what’s expected to be another strong earnings season for America’s tech giants.
Tesla (TSLA) and Google-parent Alphabet (GOOGL) will be the first of the Magnificent 7 to report when they release their second-quarter results after the closing bell. Dow component International Business Machines (IBM) is also scheduled to report, as are enterprise software maker ServiceNow (NOW) and chipmaker Texas Instruments (TXN).
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.
Shares of Alphabet and Tesla were little changed in early-afternoon trading Wednesday, while Texas Instruments rose about 1% and IBM fell 1%. ServiceNow stock dropped more than 5% on a mixed day for the major indexes.
Follow along below for analysis ahead of the earnings releases and all the numbers later today, as well as the market reaction.
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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