Follow the Magnificent Seven US tech companies through earnings, capital spending and profit forecasts.
Apple’s iPhone and Mac revenue exceeded expectations in the fourth quarter of fiscal 2026, but higher memory prices and AI inference costs weighed on gross margin guidance for the next quarter. Goldman Sachs raised its revenue forecasts while lowering its earnings forecasts and price target.
iPhone and Mac drove Apple’s September quarter revenue above market expectations, but rising memory costs and slowing services growth made the December quarter outlook mixed. Citi lowered its fiscal 2027 earnings-per-share forecast and maintained its Buy rating.
Apple’s revenue guidance for the December quarter exceeded expectations, but slowing services growth and rising memory costs offset the earnings benefit of stronger revenue. Morgan Stanley maintained its Overweight rating and lowered its price target from $355 to $350.
BofA expects Apple's revenue for the quarter ending December 2026 to be significantly below market consensus, while rising memory costs will also compress gross margin; the bank lowered its full-year iPhone sales forecast but maintained its Buy rating.
Apple’s revenue for the quarter ended in September rose 11.7% year over year, exceeding company guidance and market expectations. iPhone, Mac and Greater China grew rapidly, while iPad and wearables revenue declined; Citi is watching pressure on gross margins from memory costs.
Apple’s fiscal fourth-quarter revenue and earnings per share for 2026 exceeded market consensus, but its guidance for next-quarter services growth and gross margin was weak. JPMorgan raised its hardware revenue forecasts while lowering its earnings forecasts and price target.
Apple’s fiscal 2026 fourth-quarter revenue and earnings per share both beat expectations, and its revenue guidance for the December quarter also exceeded consensus. However, rising memory prices and slower services growth are weighing on gross margins, prompting Bernstein to raise its revenue forecasts while cutting its earnings forecasts.
Palantir’s revenue growth accelerated for the 13th consecutive quarter, but short-term contracts slowed booking metrics; Apple’s iPhone and China businesses performed strongly, while rising memory prices and slowing services growth weighed on its margin outlook.
Apple’s revenue rose 12% year over year in the fourth quarter of fiscal 2026, but gross margin guidance for the December quarter was below market consensus. Bernstein believes rising memory costs will continue to squeeze margins, while remaining optimistic about Apple’s long-term opportunity in on-device intelligence.
Apple expects revenue to grow 7%–10% year over year in the December quarter, above Morgan Stanley’s and market expectations. However, services growth continues to slow, and rising memory costs are pressuring gross margin. Morgan Stanley maintains its Overweight rating and cuts its price target to $350.
Microsoft’s latest voluntary departure program is offered to approximately 60 thousand employees. Wells Fargo estimates that if one-third accept and savings begin to materialize at the start of 2027, the fiscal 2027 operating margin could benefit by approximately 1 percentage point, helping offset depreciation and amortization pressure.
Alphabet’s third-quarter cloud revenue rose 103% year over year, but search, YouTube advertising and other businesses fell short of market consensus, as did consolidated operating profit and earnings per share.
Week 8 tracking shows that delivery waits for the iPhone 18 Pro lineup generally shortened, while Duo delivery dates remained at January 2027. JPMorgan believes Pro lineup demand volumes may decline year over year, while price increases and demand for the higher-priced Duo will support revenue growth.
Microsoft Azure grew 48% at constant currency in the first quarter of fiscal 2027, exceeding company guidance and buy-side expectations; margins and free cash flow also beat expectations. Evercore ISI believes next quarter’s Azure guidance and the full-year cash flow outlook will inform subsequent assessments.
Apple’s revenue rose 12% year over year in the fourth quarter of fiscal 2026, exceeding company guidance and market consensus; however, gross margin guidance for the December quarter fell to 45%–46%, below Bernstein and market expectations.
Amazon’s third-quarter capital expenditure doubled year over year, and management expects a further increase in 2027; AWS revenue exceeded Bloomberg consensus expectations, but a growing share of AI business and higher storage costs are adding pressure to margins.
AWS third-quarter revenue rose 39% year over year, below Morgan Stanley’s 42% forecast. Backlog and capital spending support the bank’s view of subsequent growth, but free cash flow is under pressure and the release of satellite business costs has also been delayed.
AWS revenue grew 39% year over year and its margin rose to 38.7%; North American retail margins also improved. However, AWS revenue fell short of higher buy-side expectations, and the midpoint of fourth-quarter operating profit guidance was below market consensus.
Microsoft’s Azure constant-currency revenue growth rose to 48% in the first quarter of fiscal 2027, while adjusted Microsoft 365 Commercial cloud growth reached 19%; Barclays raised its price target but expects capital spending to continue squeezing free cash flow.
Samsung’s HBM4 revenue tripled quarter over quarter, and Goldman Sachs raised its fourth-quarter profit forecast; BYD and Geely reported results below the bank’s expectations, while Weichai improved its margins through its power generation business.
