Two of the world’s largest technology companies, Amazon and Microsoft, are set to report their quarterly earnings on Wednesday, April 29, after market close, with potential implications for broader financial markets and the cryptocurrency sector.
Amazon (AMZN) Q1 FY26 Earnings Preview: Wall Street expects Amazon to report earnings per share (EPS) of $1.63, representing 2.5% growth year-over-year, on revenue of $177.27 billion, up approximately 14% from the same period last year. This marks an improvement from the 8.6% revenue growth Amazon posted in Q1 of the previous year. The company has a strong track record of meeting or beating revenue estimates; last quarter it reported $213.4 billion in revenue, slightly surpassing expectations. Cathie Wood’s ARK Invest added 280,450 AMZN shares worth roughly $71.5 million on Friday, a notable pre-earnings move. Analysts remain overwhelmingly bullish: 42 out of 45 analysts tracked by TipRanks rate the stock a Buy, with an average price target of $287.33, implying roughly 8.84% upside. AMZN stock is up more than 14% year-to-date in 2026, driven by continued growth and AI integration within Amazon Web Services (AWS).
Microsoft (MSFT) Fiscal Q3 2026 Earnings Preview: Microsoft is expected to report adjusted EPS of $4.05 on revenue of $81.4 billion, compared to $3.46 per share on $70.1 billion in the same quarter last year. The key metric to watch is Azure cloud revenue growth, anticipated at 39.7%, up slightly from 39% in the prior quarter. Analysts expect capital expenditure of $37.5 billion for the quarter, nearly double the $21.4 billion spent in Q3 last year, as Microsoft invests $120 billion in AI infrastructure this year. Free cash flow is expected to decline to $15.4 billion from $20.3 billion a year earlier. Investors are increasingly focused on when the massive AI spending will translate into revenue growth. The company’s Copilot monetization is also in focus, with 15 million paid Microsoft 365 Copilot seats reported last quarter. A positive signal came from Accenture, which plans to roll out Copilot to all 743,000 employees. Microsoft also confirmed Monday that its exclusive partnership with OpenAI has ended, adding uncertainty. MSFT stock is down roughly 10-12% in 2026, making it the worst performer among the Magnificent 7. Analysts remain positive: 33 of 35 rate it a Buy, with an average price target of $570.30, implying about 34% upside.
While these are traditional tech earnings reports, the performance of mega-cap tech stocks, particularly those heavily invested in AI and cloud computing, often correlates with risk-on sentiment in cryptocurrency markets. Strong earnings could boost investor confidence and risk appetite, potentially driving capital into digital assets. Conversely, any disappointment—especially on cloud revenue or AI monetization—could dampen broader market sentiment.
