Earnings season: how did Big Techs perform in 1Q26?
Tech Trends: this year began with turbulence in the sector, but also opened doors to unprecedented opportunities and investments in AI infrastructure
By Itaú Private Bank
The past few weeks have been particularly busy for the technology sector. Five companies from the group known as the Magnificent Seven reported their earnings in late April.
Alphabet, Apple, and Amazon delivered solid performance in their main business lines, while Microsoft and Meta reported results along with announcements of increased capital expenditures.
In Alphabet’s case, cloud computing expanded, while its core search segment maintained a steady growth pace.
Amazon, meanwhile, saw progress in its cloud division (AWS) and reported an increase in the volume of long-term contracts. Apple, in turn, provided guidance above market estimates.
Microsoft and Meta, meanwhile, signaled plans to expand investments, particularly in infrastructure.
The rise in spending comes alongside stronger demand for cloud computing, with spillover effects on sectors such as semiconductors, energy systems and data center infrastructure.
Estimates suggest that U.S. companies could allocate more than $700 billion by 2026, potentially reaching around $1 trillion the following year.
The period was also marked by leadership changes in the sector. Apple announced the departure of its CEO after more than a decade in the role, and Netflix reported changes to its board.
In the coming months, events such as Nvidia’s earnings release and conferences like Google I/O and WWDC are expected, where companies typically unveil product updates and software developments.