Follow the Magnificent Seven US tech companies through earnings, capital spending and profit forecasts.
Azure grew 48% at constant currency in the first quarter of fiscal 2027, and its second-quarter guidance also exceeded market expectations. Bank of America raised its earnings forecast and price target while expecting capital expenditure to accelerate in the second half and full-year free cash flow to decline.
Amazon’s third-quarter AWS revenue grew 39.3% year over year, below some buy-side expectations but above the market consensus. Management expects AWS to grow more than 40% in each of the next two years. Citi has raised its earnings forecasts on that basis while monitoring capacity expansion spending and margins.
AWS accelerated for a sixth consecutive quarter, and management expects revenue growth of more than 40% in both 2027 and 2028; meanwhile, advertising growth slowed and heavy infrastructure spending pressured free cash flow.
Google Cloud revenue rose 102.6% year over year in the third quarter of 2026, beating market consensus. Alphabet’s overall revenue and profit fell short of expectations, while heavy capital expenditure pushed free cash flow into negative territory.
Global iPhone sell-through fell 9.4% year over year in September, ending 18 consecutive months of growth. The Pro lineup started well, but the delayed standard-model launch and high channel inventory led Bernstein to flag downside risk to Apple’s fiscal 2026 fourth-quarter revenue.
AWS growth rose to 39% in the third quarter but still fell short of buy-side expectations. Amazon is optimistic about growth over the next two years and is preparing to increase investment. JPMorgan expects rising capital spending to weigh significantly on free cash flow in 2027.
AWS grew 39% year over year in the third quarter, below Morgan Stanley’s expectations. Rising capital spending and backlog support the long-term growth outlook, while cash flow and the costs of the satellite business remain under pressure.
Amazon and Intel’s cloud and server businesses are still growing, but cash investment, capacity and PC inventory reductions have changed near-term earnings expectations; SNDK and TWLO also face tests of their growth mix and margins.
Third-quarter search revenue growth slowed to 12%, below the 13%–14% previously discussed by investors. Cloud revenue grew 103% year over year, but AI investment and inventory purchases will continue to weigh on free cash flow. JPMorgan maintained its Overweight rating and lowered its price target.
AWS revenue grew 39.3% year over year, above Goldman Sachs and consensus estimates but below the growth threshold of more than 42% previously watched by the buy side. The midpoint of fourth-quarter margin guidance was also below market expectations.
Third-quarter search revenue fell short of expectations, while cloud growth was constrained by computing capacity. Goldman Sachs maintained its buy rating but cut its price target from $435 to $385 following revisions to its earnings forecasts and valuation.
Google Cloud revenue grew 102.6% year over year and its margin improved markedly, but growth in both search and YouTube advertising slowed, while Alphabet’s overall operating profit was about 6% below market consensus.
In Microsoft’s first quarter of fiscal 2027, growth in Azure and M365 commercial cloud exceeded market expectations, and cloud gross margin improved from the previous quarter. However, commercial seat growth slowed, and the Windows business continued to decline.
Third-party computing capacity delivery delays led Microsoft to reduce its 2026 capital expenditure guidance from 175 billion dollars to 170 billion dollars; management expects spending to exceed 50 billion dollars next quarter and accelerate in the first half of 2027.
AWS grew 39% year over year in the third quarter, and management expects growth to remain above 40% through 2028; however, advertising growth slowed to 11%, and the midpoint of fourth-quarter operating profit guidance was below market expectations.
Alphabet’s quarterly free cash flow was negative for the second consecutive time; Microsoft lowered its 2026 capital expenditure guidance but expects spending to exceed 50 billion dollars in the next fiscal quarter. Nomura believes attention will shift to financial capacity and progress in AI monetization.
Amazon AWS growth fell short of the buy-side threshold, while capital spending reduced free cash flow; Intel data center revenue beat expectations, but a weak PC business weighed on fourth-quarter guidance.
Alphabet’s search growth missed expectations; Microsoft Azure accelerated, but financing and costs drew attention. ServiceNow and Fortinet face tests involving AI usage growth, the realization of service revenue and margins.
In the first quarter of fiscal 2027, Microsoft’s Azure growth exceeded company guidance, while commercial cloud customer upgrades drove revenue; capital expenditure still rose 30% and free cash flow fell 27% year over year.
The new Mac and iPad mini will go on sale on 6 November, with some models priced higher at launch than their predecessors. Goldman Sachs believes the premium product mix can help offset near-term supply constraints and weakness in the PC and tablet markets.
