Big Tech Earnings Analysis: Q4 2025/Q1 FY2026 Quarterly Results – Alphabet, Amazon, Meta, Apple, Microsoft, Tesla, AMD, and Palantir Report Mixed Results Amid AI Investment Surge

The February 2026 Big Tech earnings season provided critical insights into the trajectory of artificial intelligence investments, cloud market dynamics, and consumer technology demand across global markets [1]. Eight major technology companies—including Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), Apple (AAPL), Microsoft (MSFT), Tesla (TSLA), AMD, and Palantir (PLTR)—reported quarterly results that revealed divergent performances and strategic priorities [2][3]. The broader market response was notably mixed, with the Dow Jones Industrial Average gaining 1.64% to reach 50,115.68, while the technology-heavy NASDAQ Composite declined 0.54% to 23,031.21, and the S&P 500 posted modest gains of 0.17% to 6,932.31 [0]. This divergence between traditional industrial stocks and technology indices reflected investor uncertainty regarding the return profile of massive AI infrastructure investments being undertaken by major technology companies.

The earnings season underscored a fundamental tension in the technology sector: while companies are delivering beats on revenue and earnings per share expectations, stock prices have reacted negatively when management guidance or capital expenditure plans suggest continued heavy investment in AI infrastructure without immediate corresponding returns [11][12]. This pattern was most pronounced at Microsoft, which reported a 60% year-over-year increase in net income to $38.5 billion and revenue growth of 17% to $81.3 billion—beating analyst expectations—yet saw its stock plummet 12.6% post-earnings due to growth concerns and elevated capital expenditure commitments [11]. Similarly, Amazon exceeded revenue forecasts with $213.4 billion in quarterly sales (12% YoY growth) but missed EPS estimates by two cents and provided downbeat first-quarter profit guidance, resulting in a 5.55% stock decline that represented the biggest drop among major technology companies [7].

demonstrated strong operational performance with net income increasing 30% and EPS rising 31% to $2.82, beating consensus estimates of $2.57 by $0.25 [4]. The company’s Google Cloud segment delivered particularly impressive results, reaching approximately $11.6 billion in quarterly revenue with 48% year-over-year growth—the fastest acceleration since 2021—while cloud backlog surged to $240 billion, representing a 55% sequential increase and over 100% year-over-year growth [5]. However, the stock closed down 2.53% at $322.86 amid investor concerns about elevated capital expenditure requirements for AI infrastructure and a YouTube advertising miss of $11.38 billion against the $11.84 billion estimate [0][5]. Alphabet’s Other Bets segment also widened its loss to $3.61 billion, representing a 200% year-over-year deterioration that heightened concerns about the company’s ability to diversify beyond its core advertising and cloud businesses [5].

reported quarterly revenue of $213.4 billion, exceeding forecasts and representing 12% year-over-year growth, driven primarily by continued expansion in its cloud computing division [6]. AWS generated $35.6 billion in revenue with 24% year-over-year growth, beating the 21.8% estimate and demonstrating continued strength in enterprise cloud adoption [6]. The operating margin at AWS expanded to 35% from 34.6% in the third quarter, indicating improving profitability despite ongoing investment requirements [6]. However, EPS of $1.95 missed the $1.97 consensus estimate, and management announced a $200 billion capital expenditure guidance for fiscal year 2026—significantly exceeding the $34.37 billion estimate—which spooked investors concerned about near-term margin compression [7]. The stock closed at $210.32, representing a 5.55% decline that reflected market disappointment with profit trajectory rather than top-line performance [0].

delivered exceptional revenue growth of 24% year-over-year to $59.9 billion, beating analyst estimates, while EPS of $8.88 exceeded forecasts [8]. The company achieved full-year revenue of $201 billion, representing a 22% annual increase, and daily active users across the family of applications reached 3.5 billion, demonstrating continued engagement strength [8]. Early monetization of AI video tools has reached a $10 billion revenue run rate, suggesting promising progress in monetizing generative AI investments [3]. Despite these positives, the stock declined 1.31% to close at $661.46 as management signaled significant increases in AI capital expenditure that would weigh on near-term profitability margins [0][3]. The company’s ad-led revenue momentum remains robust, but investors are carefully monitoring the transition from AI investment to sustainable returns.

achieved its highest quarterly revenue in company history at $143.8 billion for Q1 FY2026, representing a 16% year-over-year increase that significantly exceeded market expectations [9]. The iPhone segment posted exceptional growth of 23% year-over-year, driven by strong holiday season demand and the successful iPhone 17 series launch [10]. Services revenue reached $30 billion with 14% year-over-year growth, while gross margins expanded to 35.4%, reflecting the company’s continued focus on high-margin product and services categories [9][10]. Most notably, China revenue surged 38% year-over-year, indicating substantial recovery in market share following previous regulatory and competitive pressures [9]. The active device base reached 2.5 billion installations, providing a substantial foundation for services growth and ecosystem monetization [9]. The stock closed up 0.80% at $278.12, making Apple one of the few gainers among major tech names during the earnings week [0].

reported exceptional profitability with Q2 FY2026 revenue of $81.3 billion (17% YoY growth, beating the $80.3 billion estimate), EPS of $5.16 representing a 60% year-over-year increase, and net income of $38.5 billion—also a 60% year-over-year improvement [11]. Azure cloud revenue growth of 39% marked the tenth consecutive quarter of 30% or higher growth, demonstrating sustained enterprise cloud adoption momentum [11]. Despite these impressive metrics, the stock initially plummeted 12.6% post-earnings as Q3 guidance came in slightly below analyst expectations, and capital expenditure reached a record $37.5 billion—up 66% year-over-year—with the majority allocated to AI infrastructure development [11][12]. The company closed at $401.14 with a 1.90% weekly gain, reflecting ongoing investor debate about the return timeline for massive AI investments [0].

reported EPS of $0.50, beating estimates by 8.7%, but delivered concerning operational metrics including Q4 deliveries of 418,227 units (16% YoY decline), full-year deliveries of 1.64 million (8.6% YoY decrease), and automotive revenue of $69.5 billion (10% YoY decline) [13]. Despite these headwinds, the stock rebounded strongly to close at $411.11 with a 3.50% weekly gain, representing one of the best performances among major automakers [0][13]. Analysts remain bullish on dip opportunities, citing catalysts including Full Self-Driving (FSD) development, potential Robotaxi revenue streams, and autonomous vehicle technology monetization [14]. Some analysts have maintained a price target of $505, suggesting substantial upside from current levels if execution on autonomy initiatives proceeds as expected [14].

delivered record quarterly performance with revenue of $10.3 billion (34% YoY growth, beating the $9.67 billion estimate), EPS of $1.32 versus the $1.32 estimate, and full-year revenue of $34.6 billion representing 34% annual growth [15]. The Data Center segment generated $5.4 billion with 39% year-over-year growth, driven by accelerating adoption of AI and high-performance computing solutions [15]. CEO Lisa Su characterized 2025 as a “defining year” for the company, with Q1 2026 guidance projecting $9.8 billion in revenue (32% YoY growth) [15]. The company previewed its “Helios” rack-scale AI platform and reported approximately $390 million in MI308 GPU sales to China during Q4, though regulatory risks surrounding China shipments represent a potential headwind [15]. The stock closed at $208.44 with an 8.28% weekly gain—the strongest percentage performance among all analyzed companies—reflecting investor optimism about AMD’s competitive positioning in the AI semiconductor market [0].

delivered the highest growth rate in company history with Q4 revenue of $1.41 billion (70% YoY increase), including US Commercial growth of 137% to $507 million and US Government growth of 66% to $570 million [16]. The company provided FY2026 guidance of $7.19 billion with commercial growth projected above 115%, demonstrating continued momentum in enterprise and government AI adoption [16]. Total Contract Value increased 138% year-over-year, while the company maintains $7.2 billion in cash with no debt, providing substantial financial flexibility for continued investment [17]. The stock closed at $135.90 with a 4.53% weekly gain, extending a remarkable three-year appreciation exceeding 1,600% [0][18]. However, the company’s elevated valuation at approximately 219 times price-to-earnings represents significant sensitivity to any slowdown in growth trajectory [0].

The February 2026 earnings season revealed a critical inflection point in the technology sector’s AI investment cycle, where the magnitude of capital commitments has begun to outpace demonstrable near-term returns, creating tension between growth ambitions and investor patience [11][12]. Microsoft and Amazon together signaled capital expenditure commitments exceeding $237.5 billion for fiscal year 2026, representing unprecedented infrastructure investment levels that will pressure margins in the near term while potentially establishing dominant positions in AI-capable cloud computing [7][12]. Alphabet similarly indicated plans to increase capital expenditure significantly for AI development in 2026, suggesting a sector-wide consensus that infrastructure leadership will determine competitive positioning over the coming decade [5]. The market’s mixed reaction—punishing stocks despite earnings beats when capex guidance exceeded expectations—indicates investors are actively pricing in execution risk and potential oversupply scenarios if AI demand fails to maintain pace with investment commitments.

Google Cloud’s 48% year-over-year growth represents a significant acceleration from prior quarters and challenges the narrative that AWS and Azure maintain insurmountable leads in enterprise cloud computing [5]. The segment’s revenue of approximately $11.6 billion combined with backlog growth exceeding 100% year-over-year suggests Google Cloud is successfully capturing enterprise AI workloads and hybrid cloud deployments [5]. AWS maintained solid growth at 24% year-over year with expanded operating margins of 35%, demonstrating continued profitability leadership, while Azure’s 39% growth marked a deceleration from prior periods despite remaining robust [6][11]. This dynamic suggests the cloud market is transitioning from a growth-at-all-costs phase to one emphasizing profitable scaling and AI workload specialization, potentially benefiting companies that can balance expansion with margin discipline.

The earnings season revealed starkly different demand trajectories between consumer-facing technology segments and enterprise/business-facing markets [9][13]. Apple’s record iPhone sales (23% YoY growth) and 38% China revenue surge demonstrated resilient premium consumer demand, particularly during the holiday season, while Tesla’s 16% delivery decline highlighted competitive pressures and market saturation in electric vehicles [9][13]. In contrast, enterprise-facing segments including Palantir’s government and commercial businesses, AMD’s Data Center division, and Google Cloud all demonstrated accelerating growth, suggesting corporate and government AI adoption is offsetting consumer discretionary weakness [15][16]. This bifurcation implies technology sector performance going forward may depend heavily on the relative weight of consumer versus enterprise exposure in individual company portfolios.

Several companies analyzed maintain elevated valuation multiples that may face compression if growth decelerates or AI investment returns disappoint near-term expectations [0]. Palantir’s 219 times price-to-earnings ratio and Tesla’s 246 times multiple represent substantial sensitivity to any perceived slowdown in growth trajectory [0]. The three-year, 1,600% appreciation in Palantir stock has created a valuation foundation that requires sustained triple-digit growth rates to justify, while Tesla’s premium valuation increasingly depends on monetization of autonomous vehicle and robotics initiatives rather than core automotive fundamentals [14][18]. Investors should note that these elevated multiples create asymmetric risk profiles where modest growth disappointments could trigger substantial multiple contractions.

: Microsoft, Amazon, and Alphabet have committed to unprecedented AI infrastructure investments totaling over $237.5 billion combined for fiscal year 2026 [11][12]. This concentration creates sector-wide risk if AI demand fails to materialize at expected scales or timeframes. The “power grid wall” constraint—where electricity generation and distribution infrastructure may limit data center deployment—adds physical execution risk to these ambitious plans [12]. Companies with lower AI exposure or more diversified revenue streams may offer defensive positioning against potential infrastructure oversupply scenarios.

: The 16% year-over-year decline in Q4 deliveries and 8.6% full-year decrease represents significant market share risk in an increasingly competitive electric vehicle landscape [13]. While the stock has proven resilient, sustained delivery pressure could eventually trigger multiple compression as investors reassess growth assumptions. Competitors including Chinese EV manufacturers and legacy automotive companies are gaining share in key markets, potentially creating structural headwinds for Tesla’s core automotive business.

: Palantir’s heavy government exposure creates dependency on current administration policies and budgets, representing potential political and regulatory risk [16]. AMD’s MI308 China sales of approximately $390 million in Q4 face regulatory uncertainty given ongoing tensions between the United States and China over advanced semiconductor technology [15]. Apple’s services segment may face competitive pressures from regulatory actions in the European Union and United States regarding app store policies and digital markets [9].

: Alphabet’s YouTube advertising miss of $11.38 billion against the $11.84 billion estimate indicates potential weakness in social media advertising spend [5]. If macroeconomic uncertainty increases, advertising-dependent companies including Alphabet and Meta could face margin pressure as marketers reduce digital advertising budgets. While both companies beat overall revenue expectations, the YouTube miss serves as a potential early warning signal for advertising market softness.

: The company’s record Data Center revenue of $5.4 billion (39% YoY growth) and MI308 GPU momentum position AMD to capture meaningful share in the AI semiconductor market currently dominated by NVIDIA [15]. CEO Lisa Su’s characterization of 2025 as a “defining year” and the preview of the “Helios” rack-scale AI platform suggest continued product innovation that could accelerate enterprise AI adoption [15]. Investors seeking exposure to AI infrastructure without the valuation burdens of hyperscaler stocks may find AMD an attractive intermediate option.

: The 137% year-over-year growth in US Commercial revenue and FY2026 guidance projecting commercial growth exceeding 115% indicates substantial enterprise AI adoption momentum [16]. With $7.2 billion in cash and no debt, the company has financial flexibility to invest in growth while maintaining operational sustainability [17]. The Total Contract Value increase of 138% suggests strong forward visibility into revenue streams, potentially supporting continued premium valuation if growth momentum persists.

: The 38% year-over-year growth in China revenue represents a significant reversal from prior periods of market share decline, suggesting Apple’s premium positioning and ecosystem advantages are resonating with Chinese consumers [9]. Record quarterly revenue overall demonstrates the company’s ability to drive growth across product categories while maintaining strong services margins. The 2.5 billion active device install base provides a substantial foundation for continued services growth and ecosystem monetization [9].

: The 48% year-over-year growth rate—fastest since 2021—and backlog growth exceeding 100% year-over-year position Google Cloud for potential market share gains in enterprise AI workloads [5]. If Google Cloud can sustain this acceleration while improving operational efficiency, the segment could become a meaningful profit contributor rather than an investment drain, potentially unlocking value currently obscured by Other Bets losses.

: All eight analyzed companies beat consensus EPS estimates except Amazon, which missed by $0.02 per share [0][4][7][8][11][13][15]. Alphabet delivered EPS of $2.82 (beat by $0.25), Meta reported EPS of $8.88 (beat), Microsoft achieved EPS of $5.16 (60% YoY growth), Tesla posted EPS of $0.50 (beat by 8.7%), AMD generated EPS of $1.53 (beat), and Palantir maintained its growth trajectory with 70% revenue expansion [4][8][11][13][15][16]. Amazon was the sole EPS miss among major names, though revenue of $213.4 billion exceeded forecasts by a meaningful margin [7].

: Palantir led with 70% year-over-year revenue growth, followed by Google’s Cloud segment at 48%, AMD at 34% (record $10.3 billion quarterly revenue), Meta at 24%, AWS at 24%, Apple at 16%, Microsoft at 17%, and Alphabet at 18% consolidated [5][6][8][9][11][15][16]. These growth rates demonstrate the continued expansion of enterprise technology spending while highlighting the consumer technology segment’s more moderate growth profile.

: AMD (+8.28%) and Tesla (+3.50%) emerged as top performers, while Amazon (-5.55%) and Alphabet (-2.53%) experienced the steepest declines [0]. The differentiation reflects investor preferences for pure-play AI semiconductor exposure (AMD) and growth catalyst narratives (Tesla autonomy) over near-term profit compression in cloud and platform businesses (Amazon, Alphabet). Microsoft (+1.90%), Apple (+0.80%), and Palantir (+4.53%) posted modest gains, while Meta (-1.31%) declined amid AI investment concerns [0].

: FY2026 capex guidance ranges from Amazon’s $200 billion to Microsoft’s record $37.5 billion quarterly run rate [7][12]. These commitments indicate sector-wide conviction in AI infrastructure necessity while creating near-term margin pressure that investors are actively penalizing through stock price reactions. The gap between earnings beats and stock declines for high-capex companies suggests markets are pricing execution risk over current-period fundamentals.