3 Must-Watch Tech Earnings Reports Coming Up…

Investors will also be watching closely to see whether these companies can help sustain the rally in the U.S. stock market. Last week, the S&P 500 reached a new all-time high, marking a 23% year-to-date gain, while the Dow Jones closed above the 43,000 mark for the first time, signaling continued optimism about market growth.

According to Bank of America, as earnings season kicked off, 30 companies in the S&P 500 surpassed earnings expectations by an average of 5%, up from 3% at the start of the last quarter. An additional 41 S&P 500 companies reported results last week. However, with the S&P 500 currently trading at around 21.8 times forward earnings—well above its long-term average of 15.7—some analysts caution that stock valuations may be stretched. Any disappointment in these reports could trigger a market correction as investors reassess valuations.

As we look ahead to big tech’s upcoming releases, here’s what to watch for:

1# ​​​​Will Microsoft’s Azure Unit Miss Expectations Again?

Microsoft delivered stronger-than-expected earnings and revenue for its fiscal fourth quarter, with total revenue rising 15% year-over-year. Net income climbed to $22.04 billion, up from $20.08 billion in the same quarter last year, translating to $2.69 per share.

While these results were solid, investor attention was focused on Azure’s performance, which fell below expectations for the first time since 2022. Azure and other cloud services posted 29% revenue growth, but this missed consensus estimates, sparking concerns about whether Microsoft’s cloud unit is losing momentum in an increasingly competitive market.

Despite the Azure miss, Microsoft’s management remains optimistic about future growth, suggesting potential acceleration in the coming quarters. However, investors remain cautious, as Azure’s performance is now a critical driver of Microsoft’s overall growth, especially as cloud computing continues to gain importance across industries.