The ‘Magnificent 7’ Are Off to a Mixed Start in 2026. Here’s What to Watch as Their Earnings Start

America’s heavy-hitting “Magnificent 7” stocks have driven years of market gains. That may not continue to be the case.

This year has started with a mixed showing from the grouping of some of America’s biggest tech stocks, which accounted for over 40% of the S&P 500’s roughly 18% total return in 2025. Google parent Alphabet (GOOGL) is up some 5% since 2026 began, while Amazon (AMZN) is up about 4%. Tesla (TSLA), Meta (Meta), and Nvidia (NVDA) are little changed. Microsoft (MSFT) and Apple (AAPL) are in negative territory. The Roundhill Magnificent Seven ETF (MAGS) which tracks the group, is about flat.

A more “risk-off” stance as geopolitical events rattled markets earlier this month could be partly to blame, along with concerns about an AI bubble—though the stocks’ recent divergence suggests that some are having a harder time winning over investors than others. Magnificent 7 earnings, which kick off this week, could shed more light on how they’re approaching a range of challenges and, perhaps, breathe fresh enthusiasm into their shares. 

For Tesla, which is set to report earnings after the bell Wednesday, that could mean sharing more about its developments in self-driving cars and robotics in the midst of an effort to reposition its business and the perception of the opportunity its stock offers. CEO Elon Musk, who’s previously suggested as much as 80% of the company’s value could eventually be driven by its Optimus humanoid robots, said in an interview at the World Economic Forum in Davos, Switzerland last week that he expects Optimus could be available to the public next year.

Meta and Microsoft, which also report Wednesday, could face questions about their capital expenditures amid worries about their hefty spending on AI. Investors will want to hear whether and when Microsoft expects to be able to boost its cloud capacity enough to keep up with demand, and if Meta’s AI efforts are driving gains in its ad business. 

On Thursday, Apple could impress with record sales in what is typically its strongest quarter of the year after signs of better-than-expected demand for its iPhone 17. Many investors are still waiting for Apple to show progress with AI features and devices. Updates about new partnerships or other AI-related developments could help, with some analysts hoping Apple could soon identify an AI partner in China after announcing a deal with Google earlier this month. 

That Apple partnership, which Wedbush analysts called a “major validation moment” for Google’s AI efforts with Gemini, was among the latest bits of good news for its parent Alphabet, which is set to report on Feb. 4. The tech giant logged the best performance of the Magnificent 7 last year after a major legal win for its search business, which has seen strong growth along with its cloud business. Citi analysts, who’ve made Alphabet their “top pick” in the internet sector, said they’re looking for its results to top consensus estimates.

Analysts have said they’ll be watching to see if Amazon, set to release results on Feb. 5, will be able to sustain momentum in its cloud business after topping projections when it last reported in October. The e-commerce giant’s results could also show whether its investments in logistics and focus on value helped it gain wallet share during the holiday shopping season. 

Nvidia, due to release results on Feb. 25, will be the last of the Magnificent 7 to report earnings and likely the most highly anticipated as the world’s most valuable company by market capitalization and a bellwether for the AI boom. Nvidia is projected to post another sales record, which could help bring some more energy back into the AI trade, but with expectations already riding high the stock could face a high bar to impress. Investors have focused on profit margins as one of the points on which they scrutinize the company.