Magnificent Seven Earnings: What Can Investors Expect?

Earnings season is now in full swing. Many investors will be scrutinizing the reports of leading stocks, in the hope they will reveal something about the short-term future of the broader economy. 

Read on for an overview of the magnificent seven’s recent performance, as well as some specific predictions regarding this week’s big-ticket earnings calls. 

Trouble at the Top

The so-called ‘magnificent seven’ group of stocks — comprising Apple [AAPL], Microsoft [MSFT], Nvidia [NVDA], Alphabet [GOOGL], Amazon [AMZN], Meta [META] and Tesla [TSLA] — has had both its worst month and its worst quarter on record.

The Roundhill Magnificent Seven ETF [MAGS] is still down 14.57% year-to-date, despite having recovered a significant 14.79% from its 2025 low on April 8.

March saw the fund drop 10.45%, marking its worst month on record. 

The majority of the losses stem from Elon Musk’s Tesla, which was down 45.06% for the year to date on April 8 and remains down 29.44% in the year to April 25. 

Musk’s involvement with the Trump administration, among other factors, has resulted in a 20% dip in automotive revenues.

Perhaps surprisingly, Tesla’s Q1 2025 earnings presentation last week failed to address its founder’s political forays, only mentioning “changing political sentiment” as a potential factor in prices going forwards.

Elsewhere in the magnificent seven, Nvidia is down 17.33% for the year to date, despite a 77.94% year-over-year increase in revenue reported in Q4 2025 earnings back in February.

Even Google’s parent company Alphabet is down 14.34%, despite marginally beating revenue estimates and EPS estimates in Q1.

Is There Hope for the Magnificent Seven in Q2?

US President Donald Trump’s so-called Liberation Day tariffs saw more than $1trn in market value wiped from the magnificent seven in five days, but with broad recoveries in the third week of April, has the worst of the tech selloff now passed?

Of course, there is no way to know for certain, but investors might consider that the tariff freeze announced in Trump’s Rose Garden speech is temporary. In 90 days — if the administration sticks to their plan — the tariffs will once again be up for discussion. Any adverse decisions here could see tech stocks lead another significant selloff in the summer.

Chinese large language model DeepSeek’s explosion onto the market, reportedly offering performance on a par with artificial intelligence (AI) leaders at a fraction of the development cost, has also cast a question mark over current valuations.

All that said, the magnificent seven remain at the top of the S&P 500 Index, following the March rebalance. 

What to Watch This Week

This is certainly a crunch week, with four of the magnificent seven reporting, alongside a host of other major tech stocks: Microsoft and Meta are on Wednesday, Apple and Amazon are on Thursday. 

• Analysts forecast that Microsoft will report 10% year-on-year growth in revenue and earnings; Wall Street consensus is that it remains a ‘strong buy’, thanks to its AI and cloud leadership, strong financials and resilient recurring revenues, and despite AI-driven margin pressure and question marks around Copilot monetization.
• Meta may see double-digit profit and sales growth, Seeking Alpha detailed, with Wall Street likewise maintaining a ‘strong buy’ rating. One analyst upgraded Meta from ‘sell’ to ‘hold’, citing improved risk/reward after a 15% share price drop and lower valuation, with strong ad growth and rising budgets supporting that outlook. The social media giant has beaten EPS and revenue estimates eight quarters in a row. 
• Amazon, meanwhile, may log a 38% profit surge. Wall Street remains bullish, but Paul Franke advises selling the stock, citing stretched valuations, insider selling and risks from a potential recession and trade war. By contrast, Millennial Dividends is still bullish, pointing to Amazon’s diversified, high-margin business lines as key strengths. EPS is expected to rise to $1.37 from $1.13, according to Quartz. 
• When it comes to Apple, the iPhone captured a 19% global market share in Q1, with strong growth in Japan, India and emerging markets offsetting flat sales in the US, Europe and China. Analysts forecast 5% year-over-year growth in EPS and revenue, with Wall Street rating the stock a ‘buy’. Many will be looking for indications as to the brand’s direction of travel with regard to AI integration.

Conclusion 

Amid ongoing geopolitical and macroeconomic turmoil, the earnings of these four stocks will offer analysts and investors alike some clues as to what the future may hold. 

Stay tuned to the OPTO daily newsletter for detailed breakdowns of each earnings report.