By Zacks Equity Research
Publication Date: 2026-05-04 05:27:00
For Immediate Release
Chicago, IL – May 4, 2026 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Alphabet GOOGL, Meta META, Microsoft MSFT and Nvidia NVDA.
The Enormous Earnings Power of the Mag 7 Companies
Alphabet shares were already star performers before the company’s Q1 earnings release on Wednesday, making some of us anxious that the stock might be priced for perfection. But they literally hit it out of the park, with impressive momentum not just in the cloud business but also search, subscriptions, and backlog.
With Alphabet management more than answering the AI monetization question through these record results, the market didn’t lose a beat over further increases in capital expenditures. The company expects to spend in the $180 billion to $190 billion range now, up from the previous guided range of $175 billion to $185 billion.
Amazon’s Q1 results weren’t Alphabet-good, but they were nevertheless very strong, with cloud revenues showing clear acceleration and growing at their fastest pace since 2022 at +28%. The growth pace is expected to pick up further in Q2 and beyond, given new deals with Meta, Anthropic, and OpenAI.
Amazon’s 2026 Q1 cloud revenue growth of +28% follows growth rates of +24% and +20% in 2025 Q4 and Q3, respectively. Alphabet’s cloud revenue growth was in a league of its own, up +63%, which follows growth rates of +48% in 2025 Q4 and an estimated…
