Five of the “Magnificent 7” report within two days: Microsoft, Alphabet, Meta, and Amazon on 29 April 2026, and Apple on 30 April 2026. Focus has moved from fears of too much AI data-centre build to whether spending is now lifting revenue, margins, and monetisation.
The four hyperscalers are expected to spend about $645 billion in 2026, up roughly 56% year-on-year. Markets are seeking clearer proof of returns, rather than broad plans.
Microsoft expects EPS of about $4.04 (up roughly 17%) and revenue of about $81.4 billion (up roughly 16%). Capex is near $146 billion in fiscal 2026, with fiscal 2027 expectations closer to $170 billion; Intelligent Cloud is seen at about $34.2 billion (up 28%), Azure growth around 38%, AI contribution about 21.4%, and cloud gross margin at 66.23%.
Alphabet expects adjusted EPS of about $2.83 and revenue of about $107 billion (up roughly 11%). Capex is forecast at $175–$185 billion for FY2026, with estimates near $200 billion in FY2027; Search is seen at about $59 billion (up 16%), YouTube at about $10 billion (up 12%), and Cloud growth potentially in the 50% range.
Meta expects adjusted EPS of about $7.51 and revenue of about $55.5 billion (up roughly 31%). Capex guidance is $115–$135 billion for 2026, with 2027 consensus around $142 billion; ad revenue is about $54 billion (up 30%), impressions up 16%, and average price per ad up 12%.
Amazon expects adjusted EPS of about $2.11 and revenue of about $177.2 billion (up roughly 14%). Capex is guided at $200 billion for 2026, with consensus $195.9 billion and 2027 Bloomberg consensus roughly $209 billion; AWS is estimated at about $36.6 billion (up 25%), Advertising Services at about $16.9 billion (up 20.8%), and it added $5 billion to Anthropic with potential for $20 billion more.
Apple expects EPS of about $1.96 (up roughly 18%) and revenue of about $109.3 billion (up roughly 15%). Capex is estimated at about $13.5 billion in fiscal 2026 and $15.4 billion in fiscal 2027, with Services at about $30.4 billion (up 14%).
With five of the Magnificent 7 reporting next week, we see implied volatility rising sharply. Options markets are pricing in significant post-earnings stock moves, with the CBOE Nasdaq-100 Volatility Index (VXN) having climbed over 18% in April alone. This indicates that traders are preparing for major price swings, making this a critical period for positioning.
For Microsoft, the focus is squarely on whether its massive capital spending is paying off. We are watching options pricing, which suggests an expected move of around 6% in either direction following the April 29th report. Given that the stock has lagged its peers this year, a strong Azure growth number above 38% could trigger a significant rally, making call spreads an attractive strategy for bulls.
Alphabet presents a similar but distinct challenge, as it needs to prove it can grow its AI platform without hurting its Search business. Looking back at its reports in 2025, we saw how sensitive the stock was to any commentary on spending discipline. Options traders are bracing for a move of over 7.5%, reflecting the stock’s potential as a “catch-up” trade if Google Cloud growth impresses or the risk of a drop if capex guidance is unexpectedly high.
Meta’s situation is about justifying its aggressive AI investment while its core advertising business is already strong. At 17 times forward earnings, it is cheaper than its peers, which could provide a cushion, but another surprise jump in spending could revive concerns we saw in late 2025. This sets up a classic earnings trade, with straddles or strangles being considered by those betting on a large move but uncertain of the direction.
Amazon enters this period as the momentum leader, with the stock having performed the best among the group this year. This means expectations for its AWS segment are incredibly high, and anything less than a significant beat on its 25% growth forecast could disappoint. We’ve noted a recent uptick in demand for out-of-the-money puts, suggesting some traders are hedging against the possibility that the report is not strong enough to justify the stock’s recent run.
Apple stands apart, as its story is about resilience rather than pure AI infrastructure growth. The stock’s premium valuation at 28 times forward earnings leaves little room for error, especially if its Services growth slows or its outlook on China is cautious. We see lower implied volatility here, with an expected move of about 4.5%, meaning traders are more focused on protecting against a downside surprise than betting on an AI-fueled breakout.
Ultimately, the market is no longer rewarding just the ambition to spend on AI; it is demanding proof of returns. The extreme levels of planned capital expenditure across these companies represent the central risk and opportunity. We see this reflected not just in individual stock options, but also in broader index volatility, as the outcome of these reports will likely set the tone for the entire technology sector in the weeks ahead.
