This week, four of the world's largest technology companies will release earnings reports concentrated over two days. Microsoft and Meta will release their performance after the close of US stock markets on Wednesday, July 29. Apple and Amazon will follow suit after the market closes on Thursday, July 30. Meanwhile, the Federal Reserve will also announce its latest interest rate decision on Wednesday. This could be one of the most important weeks of this earnings season for US stocks. The market's concern is no longer just whether the large tech companies can continue to grow. Investors want to know whether Microsoft, Meta, Apple, and Amazon can generate sufficient revenue and profits through AI to justify their huge investments in data centers, chips, and computational power.
The Federal Reserve brings another layer of risk. If market expectations for interest rates rise, even if tech companies report strong earnings, stock prices may not necessarily rise. According toReuters' analysis of this week's key events in US stocks, investors are focusing on AI capital expenditures, free cash flow, and future interest rate direction. Recent market performance also indicates that even if a company's revenue and profit exceed expectations, stock prices can still decline if expenditures are too high or earnings guidance is not strong enough.
Why this week should not only look at whether earnings exceed expectations
Microsoft, Meta, Apple, and Amazon are all related to the AI investment cycle, but their business models are completely different. Microsoft primarily earns money through cloud computing, enterprise software, and AI tools. Meta uses AI to improve content recommendations and advertising placements. Apple hopes AI can enhance the appeal of its devices and drive growth in its services business. Amazon builds AI infrastructure through AWS while also operating e-commerce and advertising businesses. This enables investors to assess whether AI has truly generated a commercial return from four different perspectives. For Microsoft and Amazon, the focus is on cloud business growth. For Meta, the focus is on whether AI can continue to improve advertising revenue.
For Apple, the market is more concerned about whether AI can stimulate device upgrades and increase the overall value of the ecosystem. Investors will also compare revenue growth with capital expenditures. One company may achieve higher revenue and profits, but if data center expenditures grow faster, free cash flow could still decline. In this situation, even if the earnings report exceeds expectations, stock prices may still face pressure. Therefore, what determines the market reaction this week may not only be a single earnings per share figure. Performance guidance, profit margins, capital expenditures, and management statements may be more important. Readers who want to further understand this logic can read MEXC'sadvanced guide on why stock prices may still fall even if earnings exceed expectations.
Wednesday will simultaneously see the Federal Reserve, Microsoft, and Meta
July 29, Wednesday, could be the most critical day of the week. The Federal Reserve will announce its policy statement at 2 PM Eastern Time and hold a press conference at 2:30 PM. Microsoft and Meta will later release their earnings reports after the close of US markets. This order is very important. The Federal Reserve's decision will first affect investors' judgments on tech stock valuations. A few hours later, Microsoft and Meta will announce two of the most significant AI-related earnings reports for this quarter. According to theofficial schedule of the Federal Reserve's meetings, this meeting will take place from July 28 to 29. The market generally expects the Federal Reserve to maintain interest rates.
However, what investors are really concerned about may not be whether interest rates are adjusted this time, but how the Federal Reserve evaluates inflation, economic growth, and future policy direction. AReuters survey of economists shows that respondents generally expect the Federal Reserve to maintain the target rate at 3.50% to 3.75%. But if the Federal Reserve continues to emphasize inflation risks, the market may reassess the possibility of future rate hikes. Rising interest rates typically put pressure on tech stocks. Higher rates will increase the attractiveness of low-risk assets while reducing the present value of future profits. Readers who want to understand this transmission logic can read MEXC'sguide on how the Federal Reserve, CPI, and non-farm payrolls affect US stock valuations.
Microsoft's earnings report will test Azure growth and enterprise AI demand
Microsoft will announce its fourth-quarter results for the fiscal year 2026 after the US market closes on July 29, Wednesday. According toMicrosoft's official announcement regarding the release time of the fiscal year 2026 fourth-quarter earnings report, the conference call will start at 5:30 PM Eastern Time. Azure will be the first data that investors pay attention to. In the previous quarter, Azure and other cloud service revenues grew by 40% year over year. Microsoft's cloud business revenue reached $54.5 billion. The company also stated that its AI business has an annualized revenue run rate exceeding $37 billion. This data comes fromMicrosoft's official third-quarter earnings report for fiscal year 2026, showing that demand for enterprise AI and cloud computing remains strong. However, revenue growth is only part of the AI story. To build data centers and increase computational power, Microsoft still needs to invest heavily. These expenditures can support future growth but will also raise depreciation, energy, and equipment costs.
Therefore, investors will not only look at whether Azure exceeds market expectations. The market will also focus on whether Azure can continue to accelerate after new computational power comes online and whether Microsoft can convert the additional data center capacity into revenue without significantly compressing cloud business profit margins and free cash flow. Microsoft 365 Copilot will also become an important topic in the conference call. Microsoft has incorporated Copilot into several enterprise software products, but investors still hope to see more clear commercialization data. A strong Microsoft earnings report needs to prove two things. First, that enterprise AI demand is still real. Second, that customers are willing to continue paying for these AI products and services. If Microsoft gives weak performance guidance, the impact might not be limited to Microsoft itself. Software, cloud computing, semiconductor, and data center-related stocks could all be affected.
Meta needs to prove that the advertising business can continue to support AI expansion
Meta will announce its second-quarter results for 2026 after the US market closes on July 29, Wednesday. According toMeta's official release regarding the second-quarter earnings report timing, the conference call will start at 4:30 PM Eastern Time. Among large technology companies, Meta has a relatively clear model for monetizing AI. Meta uses AI to recommend content, increase user engagement, and improve advertising effectiveness. More accurate content recommendations can enhance user participation on Facebook and Instagram. Better advertising tools can help businesses find more suitable customers. According toMeta's official first-quarter earnings report for 2026, the company's revenue in the last quarter grew by 33% year over year, reaching $56.31 billion. The number of ad impressions grew by 19%, the average ad price increased by 12%, and the operating profit margin remained at 41%. These figures indicate that AI is already improving Meta's core advertising business.
The question is, how much does Meta need to spend to maintain this growth? The company previously raised its expected capital expenditures for the full year of 2026 to $125 billion to $145 billion, up from the previous estimate of $115 billion to $135 billion. Meta indicated that the adjustment is primarily related to rising component prices and the costs of new data centers. Therefore, the importance of capital expenditure guidance for this quarter may be on par with advertising revenue. If the advertising business continues to grow rapidly, investors may be willing to accept higher AI investments. Meta can prove that AI is not a distant future project but is directly improving existing businesses. However, if advertising growth slows while capital expenditures continue to rise, the market may worry that the gap between Meta's current investments and future returns is widening.
Apple's earnings report will test iPhone demand and AI strategy
Apple will announce its third-quarter results for fiscal year 2026 after the US market closes on July 30, Thursday. According toApple's investor relations website's earnings report schedule, the conference call will start at 5 PM Eastern Time. The AI challenge Apple faces is different from those of Microsoft, Meta, and Amazon. Microsoft and Amazon primarily participate in the AI cycle by building cloud computing infrastructure. Apple needs to prove that AI can make devices more attractive and drive users to upgrade their iPhones, iPads, and Macs. According toApple's official second-quarter earnings report for fiscal year 2026, the company's revenue reached $111.2 billion last quarter, a year-over-year increase of 17%. iPhone revenue hit a record high for March quarters, and services business revenue also set another record. This quarter, investors will pay attention to whether this growth can continue. iPhone revenue remains the most important data point. Growth in services business is also crucial, as service revenue is generally more stable and sustainable than hardware sales. The Greater China business will also be under scrutiny. The region remains a significant market for Apple, but competition is also very fierce. Management may also be asked about Apple Intelligence and the overall AI roadmap for Apple. Investors want to know if the new AI features are providing consumers with clearer reasons to upgrade their devices. Apple does not need to replicate Microsoft and Amazon's cloud computing strategies. It needs to prove that AI can protect the value of the Apple ecosystem and support the next round of device upgrade cycles. Apple's earnings report may also reflect the spending habits of high-end consumers. Given the relatively high prices of Apple products, if demand remains steady, it may indicate that high-income consumers are still willing to spend.
Amazon must prove that AWS growth is justified by massive investments
Amazon will also announce its earnings after the close of the US market on July 30, Thursday. According toAmazon's official second-quarter earnings conference call page, the conference call will start at 5 PM Eastern Time. AWS will be the most critical part of this earnings report. According toAmazon's official first-quarter earnings report for 2026, AWS revenue grew by 28% year over year in the last quarter, reaching $37.6 billion. AWS operating profit increased to $14.2 billion. Amazon stated that this is the fastest growth rate for AWS in the past 15 quarters. This is a strong achievement, but it also comes with massive costs. Amazon's free cash flow over the past 12 months has dropped to $1.2 billion. The company stated that the main reason is the increased spending on AI-related real estate, equipment, and infrastructure. This makes the judgment criteria for the second-quarter earnings report very straightforward. AWS must maintain fast enough growth to justify Amazon's massive investments in chips, data centers, and energy infrastructure. Investors will also focus on the profitability of Amazon's retail business and advertising revenue. These businesses can provide overall profit support while the company expands its AI investments. If AWS continues to show strong growth, stocks related to cloud computing, semiconductors, and data centers may be supported. But if AWS growth slows and pressures on capital expenditures and free cash flow continue to rise, the market may worry that the costs of AI infrastructure are growing faster than customer demand.
Earnings guidance may be more important than the numbers already announced
Microsoft, Meta, Apple, and Amazon may all exceed market expectations for revenue and profit, but their stock price reactions could still be entirely different. The reason is that market expectations are already very high. Investors not only hope that the large tech companies exceed expectations but also want them to provide strong future guidance while avoiding significant increases in expenditure plans again. For Microsoft and Amazon, the market will compare cloud business growth with capital expenditures. For Meta, investors will compare advertising revenue growth with the expanding AI budget. For Apple, the market will want to see if the strong performance of iPhones and the services business can carry over into the next product cycle. The Federal Reserve will add another variable. Even if a company's performance is strong, as long as the Federal Reserve sends a more hawkish signal, tech stock valuations may still come under pressure. Therefore, this week should not only focus on a single number. Revenue, profit margins, free cash flow, capital expenditures, and performance guidance need to be assessed together. Whether a company exceeds expectations is important, but how much the company spent to achieve that growth is equally important.
How this week's earnings reports may affect the entire market
This week’s results will not only impact the stocks of Microsoft, Meta, Apple, and Amazon. If demand for cloud computing continues to be strong, suppliers of GPUs, storage chips, networking equipment, and data center components may receive support. Higher capital expenditure plans may also benefit AI infrastructure suppliers. But for the large tech companies responsible for spending on building infrastructure, higher expenditures may pressure free cash flow and valuation. Apple's performance may affect consumer electronics, semiconductor, and component suppliers. Meta's advertising data could reflect digital advertising demand and consumer activity. The Federal Reserve may determine how the market interprets all this data. The large tech companies will tell investors how fast AI revenue is growing. The Federal Reserve will impact how high investors are willing to pay for this future growth.
Frequently Asked Questions
When will Microsoft announce its earnings report?
Microsoft will announce its fourth-quarter results for the fiscal year 2026 after the US market closes on July 29, Wednesday. The earnings report conference call will start at 5:30 PM Eastern Time.
When will Meta announce its earnings report?
Meta will announce its second-quarter results for 2026 after the US market closes on July 29, Wednesday. The earnings report conference call will start at 4:30 PM Eastern Time.
When will Apple and Amazon announce their earnings reports?
Apple and Amazon will both announce their earnings reports after the US market closes on July 30, Thursday. Both companies' conference calls will start at 5 PM Eastern Time.
When will the Federal Reserve announce its interest rate decision?
The Federal Reserve will announce its policy decision at 2 PM Eastern Time on July 29, Wednesday, and hold a press conference at 2:30 PM.
What should be the key focus of Microsoft's earnings report?
Azure growth is the most important data. Investors will also focus on AI business revenue, Copilot commercialization, cloud business profit margins, data center capacity, and capital expenditures.
What should be the key focus of Meta's earnings report?
The market will focus on advertising revenue, ad impressions, ad prices, user engagement, and capital expenditure guidance. Investors want to know if Meta's advertising growth can continue to support AI expansion.
What should be the key focus of Apple's earnings report?
Investors will focus on iPhone revenue, services business growth, sales in Greater China, gross margin, and Apple’s AI strategy. Management's outlook for the next product cycle may be particularly important.
What should be the key focus of Amazon's earnings report?
AWS revenue growth and operating profit will be the main focus. Investors will also focus on free cash flow, AI infrastructure expenditures, retail business profit margins, advertising revenue, and future guidance.
Why might company stock prices still fall even if earnings exceed expectations?
A company might exceed revenue and profit expectations for a quarter that has ended but give weak future guidance. If capital expenditures rise, profit margins fall, or management anticipates slower future growth, stock prices may still decline.
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