Four of the Magnificent Seven (Mag 7) tech giants are still on track to hit their massive artificial intelligence (AI) spending targets this year, according to their earnings report.
The companies that reported quarterly earnings after the market on Wednesday are Microsoft ( MSFT ), Alphabet ( GOOG ), Meta ( META ) and Amazon ( AMZ ), with a combined market capitalization of approximately $12 trillion.
Earlier, an analysis by Bridgewater Associates flagged that the four companies are expected to spend about $650 billion combined on AI infrastructure by 2026. Although most of them did not break out their AI spending in their latest earnings, they appear to be on track to continue their spending spree in the sector.
The investment has significant implications for the digital asset sector, particularly for bitcoin miners, who are increasingly turning away from mining towards hosting computers for AI as part of their revenue diversification strategy. The Bitcoin miners already have data centers ready and fired up to host a huge amount of machines needed for AI computing. Facing a margin squeeze from lower bitcoin prices and increased competition, miners have begun lending their data centers to AI companies to diversify their revenue streams.
AI-linked bitcoin mining stocks with exposure to hyperscaler infrastructure deals include IREN ( IREN ), which fell about 0.3%, TeraWulf ( WULF ), and Cipher Digital ( CIFR ), which fell 0.5%. Meanwhile, following the results, Microsoft fell over about 2.4% in after-hours trading, Alphabet up 6%, Meta down 6.6% and Amazon down 3.7%. Bitcoin is down about 0.9% in the last 24 hours.
The next big test of overall market sentiment and miners will come when chipmaker Nvidia reports earnings on May 20.
Here’s what the tech giants reported and said during their earnings call.
Microsoft
Microsoft reported third-quarter 2026 revenue of $82.9 billion, beating consensus estimates of $81.4 billion, with EPS of $4.27 versus estimates of $4.06, according to FactSet data.
“We are focused on providing cloud and AI infrastructure and solutions that enable any company to evaluate their performance in the agentic computing era,” said Satya Nadella, chairman and CEO of Microsoft, noting that the company’s AI business brought in $37 billion, a 123% year-over-year increase.
Alphabet
Alphabet pointed to AI as a core driver of growth and reported capital expenditures of $35.67 billion for the quarter, slightly below estimates of $36.39 billion.
“Our AI investments and full-stack approach are lighting up every part of the business,” said Alphabet CEO Sundar Pichai, linking gains in Search and Cloud to AI-driven demand. Google Cloud revenue rose 63% to $20 billion, driven in part by “enterprise AI Solutions and enterprise AI Infrastructure,” which shows how AI is shaping both product usage and enterprise adoption.
Alphabet reported Q1 2026 revenue of $109.9 billion, beating the consensus of $107 billion, with EPS of $2.81 vs. $2.63 estimate.
Amazon
Amazon reported Q1 2026 revenue of $181.5 billion, beating consensus estimates of $177.2 billion, with EPS of $2.78 vs. estimates of $1.63. AWS revenue came in at $37.6 billion versus the $36.92 billion estimate.
Amazon said free cash flow fell sharply over the past year, pointing to an increase in infrastructure spending. The company noted that the decline was “primarily driven by a year-over-year increase of $59.3 billion in property and equipment purchases,” adding that “this increase primarily reflects investments in artificial intelligence.” The shift shows how much Amazon is leaning on artificial intelligence, even if it weighs on cash generation in the short term.
Meta
Meta pointed to rising AI infrastructure costs as a key driver of spending, reporting $19.84 billion in capital spending for the quarter and raising full-year expectations to $125-145 billion, up from its previous guidance of $115-135 billion. The increase reflects “higher component prices this year and, to a lesser extent, additional data center costs to support future years’ capacity,” the company said, emphasizing how AI deployment is driving the investments.
CEO Mark Zuckerberg framed the push more directly, calling it a “milestone quarter” tied to AI advances, adding, “We’re on track to deliver personal superintelligence to billions of people.”
Meta reported Q1 2026 revenue of $56.31 billion, beating the consensus estimate of $55.5 billion, with EPS of $10.44 vs. estimates of $6.67.
