Huo Xing Finance reports: On July 29, U.S. markets will face a pivotal earnings window for AI-related trading. Microsoft, Meta, and Qualcomm will release their earnings after the close on Wednesday Eastern Time, coinciding with the Federal Reserve’s interest rate decision and coming on the heels of a recent sharp decline in AI hardware stocks. Over the past few days, stocks in storage, chips, and semiconductor equipment have continued to face pressure, as investor concerns grow regarding the return on AI capital expenditures, valuation overextension, and competition from China’s supply chain. The market’s focus has shifted from “how strong is AI demand?” to “can these investments truly translate into revenue and cash flow?” Microsoft is the most critical bellwether tonight. Wall Street expects Microsoft’s quarterly revenue to be approximately $87.6 billion and earnings per share around $4.24. Investors will closely monitor Azure growth, the commercialization progress of Copilot, and whether the company provides guidance for fiscal year 2027 capital expenditures. Previously, the market anticipated Microsoft’s FY2026 capex could reach $145 billion, significantly higher than the $88 billion in the prior fiscal year. Meta faces greater pressure around “AI spending.” Analysts expect Meta’s Q2 revenue to be around $60.2 billion and earnings per share at approximately $7.19. The company previously provided a FY2026 capex guidance range of $125 billion to $145 billion. After Alphabet raised its AI capex expectations, its stock came under pressure; if Meta raises its guidance further tonight, it may once again trigger concerns over free cash flow. Qualcomm represents another strand of the AI chip trade. Wall Street expects its adjusted EPS at $2.24 and revenue around $9.7 billion. Investors will focus on the company’s progress in data center AI, its $5 billion data center revenue target for FY2027, and whether demand for Android devices in China is recovering. Market participants believe tonight’s key issue is not merely whether earnings exceed expectations, but whether tech giants can demonstrate that their AI investments are generating tangible returns. If Microsoft and Meta provide strong signals around cloud growth, advertising conversion, or AI monetization, the AI sector may find relief. However, if capital expenditures continue to rise and free cash flow pressures intensify, funds recently withdrawn from AI hardware stocks may continue shifting toward Hong Kong-listed internet leaders, dividend-paying assets, and low-valuation core stocks.
Microsoft, Meta, and Qualcomm to Release Q2 Earnings Amid AI Market Volatility
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Summary
Microsoft, Meta, and Qualcomm will release their Q2 earnings on July 29, 2026, following recent declines in AI hardware stocks and amid developments in AI and crypto news. The reports come after the Federal Reserve’s interest rate decision, with investors focused on revenue and cash flow. Microsoft is projected to report $87.6 billion in revenue and $4.24 per share, with Azure and Copilot under the spotlight. Meta is expected to report $60.2 billion in revenue and $7.19 per share, while Qualcomm may post $9.7 billion in revenue and $2.24 in adjusted earnings per share. Market sentiment reflects concerns over AI spending and returns, with Qualcomm targeting $50 billion in revenue by 2027.
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