AMZN and GOOG Q1 EPS surged 61% and 94%, respectively, lowering the threshold for Q2 earnings surprises.
Amazon and Alphabet posted first-quarter earnings per share that exceeded estimates by 61% and 94%, respectively, reducing pressure on second-quarter results. The strong performance follows a trend of lowered expectations for Big Tech, particularly around capital expenditures and AI-driven growth.
Wall Street enters Q2 earnings season anticipating conservative capex guidance, with tech debt issuance accounting for just 10% of total market supply. Hyperscalers could deploy up to $200 billion in capex without triggering a credit crunch, according to market observers. Key focus areas include Alphabet’s capex outlook, AWS growth sustainability, and NVIDIA’s $91 billion Q2 guidance.
Microsoft’s July 29, 2026, earnings report will set the tone for the sector, with analysts watching for signs of continued spending resilience. A confirmation of stable capex could alleviate concerns among AI skeptics and support further market upside.