Four of the Magnificent Seven (Mag 7) tech giants are still on track to meet their massive artificial intelligence (AI) spending targets this year, according to their earnings report.
The companies reporting their quarterly after-market results on Wednesday include Microsoft (MSFT), Alphabet (GOOG), Meta (META), and Amazon (AMZ), with a combined market capitalization of around $12 trillion.
Previously, an analysis from Bridgewater Associates indicated that the four companies together are expected to spend around $650 billion on AI infrastructure in 2026. Although most of them did not break out their AI spending in their latest results, they appear on track to continue their spending in the sector.
This investment has significant implications for the digital assets sector, particularly for Bitcoin miners, who are increasingly moving away from mining and toward hosting computers for AI as part of their revenue diversification strategy. Bitcoin miners already have data centers ready and powered to house a massive amount of machinery needed for AI computing. Faced with margin compression due to falling Bitcoin prices and increased competition, miners have started lending their data centers to AI companies to diversify their revenue streams.
AI-related Bitcoin mining stocks with exposure to hyperscaler infrastructure deals include IREN (IREN), down about 0.3%, TeraWulf (WULF) and Cipher Digital (CIFR), down 0.5%. Meanwhile, following the results, Microsoft was down about 2.4% after hours, Alphabet was up 6%, Meta was down 6.6% and Amazon was down 3.7%. Bitcoin is down around 0.9% over the past 24 hours.
The next big test of overall market and miner sentiment will come when chipmaker Nvidia reports earnings on May 20.
Here’s what the tech giants reported and said in their earnings results.
Microsoft
Microsoft reported revenue of $82.9 billion for the third quarter of fiscal 2026, beating the consensus of $81.4 billion, with EPS of $4.27 versus the estimate of $4.06, according to FactSet data.
“We are focused on delivering cloud and AI infrastructure and solutions that enable every business to achieve maximum performance in the age of agentic computing,” said Satya Nadella, Microsoft’s president and CEO, noting that the company’s AI business brought in $37 billion, up 123% year-over-year.
Alphabet
Alphabet highlighted AI as a key driver of growth and reported capital spending of $35.67 billion for the quarter, slightly below estimates of $36.39 billion.
“Our investments in AI and our full stack approach are informing every aspect of the business,” said Alphabet CEO Sundar Pichai, linking gains in search and cloud to AI-driven demand. Google Cloud revenue grew 63% to $20 billion, fueled in part by “enterprise AI solutions and enterprise AI infrastructure,” demonstrating how AI is shaping both product usage and enterprise adoption.
Alphabet reported first-quarter 2026 revenue of $109.9 billion, beating consensus of $107 billion, with EPS of $2.81 versus the estimate of $2.63.
Amazon
Amazon reported first-quarter 2026 revenue of $181.5 billion, beating the consensus of $177.2 billion, with EPS of $2.78 versus the estimate of $1.63. AWS revenue came in at $37.6 billion, compared to an estimate of $36.92 billion.
Amazon said free cash flow fell sharply over the past year, indicating increased infrastructure spending. The company noted that this decline was “primarily driven by a year-over-year increase of $59.3 billion in purchases of property, plant and equipment,” adding that “this increase primarily reflects investments in artificial intelligence.” This move shows how much Amazon is relying on AI, even if it weighs on short-term cash generation.
Meta
Meta highlighted rising AI infrastructure costs as a key driver of spending, reporting $19.84 billion in capital spending for the quarter and raising its full-year outlook to $125 billion to $145 billion, up from its previous forecast of $115 billion to $135 billion. The increase reflects “higher component prices this year and, to a lesser extent, additional data center costs to support capacity in future years,” the company said, highlighting how AI development is driving investment.
CEO Mark Zuckerberg put the initiative more directly, calling it a “milestone quarter” linked to advances in AI and adding: “We are on track to deliver personal superintelligence to billions of people.” »
Meta reported first-quarter 2026 revenue of $56.31 billion, beating the consensus of $55.5 billion, with EPS of $10.44 versus the estimate of $6.67.
