Amazon (AMZN) missed EPS estimates in its December-quarter report, but plans to spend $200 billion in capex in 2026, raising concerns about AI technology impacting earnings. Despite this, Amazon’s cloud unit, AWS, saw a +24% revenue increase in Q4 2025. Alphabet’s Google Cloud also showed strong growth, highlighting Microsoft’s cloud business weakness.

Nvidia (NVDA) is set to report Q4 results on February 25th, with expectations of +70.8% EPS and +66.7% revenue growth. The Magnificent 7 group, including Amazon and Alphabet, is expected to see +24.2% earnings growth in Q4. These companies account for a significant portion of S&P 500 earnings and market capitalization.

Q4 earnings season has seen 293 S&P 500 members reporting, with total earnings up +14.1% from last year. Tech companies like Spotify and Lyft, as well as traditional bellwethers like Ford and Coca-Cola, are yet to report. Analysts have been raising earnings estimates for the Magnificent 7 group, showing a positive outlook for future earnings growth.

Read more at Nasdaq: Breaking Down Mag 7 Earnings: Good or Bad?