Meta, Microsoft, and Tesla reported earnings after the bell, with investors looking for indicators that the Magnificent Seven is still magnificent in the early going of 2026. The result—so far so good—but was it magnificent? Traders will have to digest the data and decide.
Earnings by Meta and Microsoft, in particular, could help gauge whether the artificial intelligence (AI) theme is still running hot. Both companies have been investing heavily in AI. The question remains whether these increased capital expenditures (CapEx) will translate into tangible revenue.
When the pre-earnings smoke cleared, Meta beat expectations on earnings per share (EPS) and revenue, but notable was the increase in CapEx guidance (between $115 and $135 billion) for 2026—as noted by CNBC, that’s almost double the amount spent in 2025. Still, sales were up 24% in Q4 compared to the previous year.
Likewise, Microsoft beat Wall Street’s EPS and revenue expectations in Q2 for its 2026 fiscal year. The software giant saw a 17% jump in overall revenue, with much of that coming from its cloud computing business, which generated $51.5 billion. This could send bullish vibes to investors wondering whether their deal with OpenAI is paying off—it appears so.
For Tesla, investors were wondering whether the recent revenue slide persisted in the final quarter of 2025. Additionally, the Wall Street Journal noted that CEO and founder Elon Musk would be leaning back into politics, which some view as potentially hurting the brand going forward. Nonetheless, Tesla still beat Wall Street estimates for EPS and revenue despite sluggish auto sales. Revenue, however, was 3.1% less than the previous year’s Q4 results. Despite this, Musk has been calling attention to the company’s potential to generate revenue from Robotaxis and humanoid robots—both of which have yet to be released.
Will these earnings beats keep investors appeased?
Single-Stock Opportunities
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