The 2026 Q2 earnings season is in full swing following the release of the big banks’ results, with many other notable companies on deck in the coming days and weeks.
Concerning next week’s docket, several Mag 7 members, Tesla TSLA and Alphabet GOOGL, are scheduled to report.
Watch Tesla’s CapEx and Margin Performance
Tesla shares haven’t had a strong showing in 2026 so far, down roughly 15% and underperforming and facing mixed post-earnings reactions. Its results in 2026 have been largely positive from an expectations standpoint, exceeding the Zacks Consensus EPS estimate by double-digit percentages in back-to-back prints.
Both EPS and sales expectations have trended higher over recent months, a bullish development as the company gears up to release its results. Earnings are forecasted to climb 22% YoY, whereas revenue is forecasted to see a 12% YoY climb.
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Margins have always been a key metric to watch for Tesla, which have largely dictated its price action overall. Its gross margin on a trailing twelve-month basis has recently turned higher after periods of decline, with continued improvement likely to drive significant overall positivity.
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It's also just as critical to rememer that Tesla is entering a massive, heavy-spending cycle, recently raising its 2026 CapEx forecast from $20 billion to over $25 billion. The huge spending levels are primarily aimed at constructing the computational and physical infrastructure needed for its real-world AI initiatives, including data centers to power FSD, the Robotaxi network, and more.
Google Cloud Results Remain Key
Alphabet shares have delivered a return on par with the S&P 500 so far in 2026, up roughly 10% and seeing huge positivity following the latest set of quarterly results. Alphabet has overall continued its stellar earnings track record in 2026, beating both EPS and revenue expectations in each 2026 release so far.
Like TSLA, Alphabet has seen bullish EPS and sales revisions for the quarter to be reported over recent months, but the revisions as of late have been more stable than anything. Though there haven’t been upward revisions recently, the stability here is still a positive takeaway. The tech giant is expected to continue its growth trajectory yet again, with earnings and revenue expected to be up 23% and 24%, respectively.
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As has been the case, cloud revenues will again be a key sentiment driver concerning the post-earnings reaction for the Mag 7 member. Google Cloud revenue totaled $20.0 billion in its latest release, reflecting a rock-solid 62.7% YoY growth rate. The growth acceleration is precisely what the market wanted to see, explaining the pop in shares following the latest release.
Further acceleration in the YoY growth rate will likely lead to huge positivity yet again from a share momentum standpoint, though it remains a tough hurdle to clear given the huge growth rates already delivered. Our consensus estimate for Google Cloud revenue stands at $22.8 billion, reflecting a 67% YoY change.
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Bottom Line
With the 2026 Q2 earnings season in full swing, investors will have a flurry of earnings reports to sort through in the coming weeks. The big banks kicked the period off in style, largely posting solid results while also providing solid read-throughs for coming periods.
And coming next week is a duo of Magnificent 7 members, namely Tesla TSLA and Alphabet GOOGL, who both head into their reports with favorable revisions for both earnings and revenue. Google Cloud results will remain key for Alphabet, whereas Tesla's AI-related CapEx and margin picture are key items to watch.
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This article originally published on Zacks Investment Research (zacks.com).