Tech Business & Industry Moves: Key Earnings Reports from January 26 – February 2, 2026

Tech earnings season kicked off with strong results from industry leaders during January 26 to February 2, 2026, underscoring resilience amid macroeconomic pressures like interest rate decisions and global trade tensions.[2] Microsoft delivered strong Q2 results, surpassing guidance with $81.3 billion in revenue (up 15%) and Azure cloud growth of 38%, fueled by AI hosting demand despite capacity constraints.[1] Shares dropped 10% post-earnings due to high spending expectations.[1] Meta crushed expectations with 24% Q4 revenue growth and 30% Q1 guidance, driven by AI-boosted ad sales, alongside capex plans of $115-135 billion for 2026.[1] Tesla saw fair value upgrades from stronger growth in full self-driving subscriptions and accelerated Optimus robot projections.[1] ServiceNow beat estimates for the fifth straight quarter with 19.5% revenue growth, though software stocks faced market headwinds.[1]

These reports align with broader S&P 500 trends projecting 14.3% earnings growth for CY 2026.[3] Amid peak earnings season expecting over 1,000 reports weekly through February 27, tech's performance signals AI and services as key growth engines.[2] Analysts like Morningstar's David Sekera noted vertical integration boosting margins, while FactSet's John Butters emphasized forward P/E ratios at 22.2.[1][3] This week's moves reflect investor focus on AI capex sustainability and capacity expansion, setting the tone for heavyweights like Alphabet upcoming.[1][2]

What Happened in Earnings Reports

Microsoft reported Q2 revenue of $81.3 billion (+15%), beating $80.6 billion guidance, with 47.1% operating margins vs. 45.8% expected and Azure up 38% against 37% guidance, though capacity-limited.[1] Meta posted 24% Q4 revenue growth, guiding 30% for Q1, with full-year 2026 projections at 25%, tied to AI ad enhancements.[1] Tesla's results prompted fair value hikes via pulled-forward Optimus and full self-driving cash flows.[1] ServiceNow achieved 19.5% revenue growth and 30.9% margins, exceeding guidance repeatedly.[1]

FactSet noted S&P 500 CY 2026 earnings growth at 14.3% as of January 30.[3] Earnings calendars confirmed activity from firms like W.R. Berkley and Graco on January 26, with peak season underway.[4][2] Netflix's prior Q4 crossed 325 million subscribers, forecasting $50 billion 2026 revenue, priming the wave.[2]

Why It Matters for Tech Business

These earnings affirm tech's strength, with AI driving Azure and Meta's surges.[1] Revenue beats signal demand outpacing supply, critical as capex balloons—Meta's $115-135 billion underscores infrastructure bets on AI ads and compute.[1]

Investor reactions varied: Microsoft's 10% drop despite beats highlights capex fears, contrasting Meta's capex-fueled optimism.[1] Broader implications include S&P 500 valuation at 22.2 forward P/E, above 5-year averages, betting on 14.3% growth.[3]

For industry, capacity constraints in cloud/AI mean ongoing supply battles, favoring incumbents like Microsoft.[1] Tesla's robot acceleration hints at diversification beyond EVs.[1] ServiceNow's beats amid software disdain show execution trumping sentiment.[1] Collectively, they reinforce tech's ~30% S&P weighting, influencing Fed policy views amid January 28 rate decisions.[2]

Expert Takes on the Results

Morningstar's David Sekera praised Microsoft's Azure growth as AI demand proof, maintaining $600 fair value despite stock dip, citing in-line guidance.[1] He viewed Meta's capex as value-accretive for ad demand, boosting free cash flow forecasts.[1] For Apple, tweaks reflected stronger iPhone growth and services mix, enhancing margins via supply chain prowess.[1]

Tesla earned fair value lifts from full self-driving subscriptions and nearer-term Optimus projections.[1] ServiceNow saw a 5% fair value cut to $200 despite beats, due to tempered medium-term growth amid software sector woes.[1] FactSet's John Butters highlighted aggregate S&P trends, with CY 2026 growth at 14.3%.[3]

Analysts note markets' short-termism: beats don't always lift shares if capex looms large.[1] Sekera emphasized vertical integration's role.[1] Overall, experts see sustained AI tailwinds but caution on valuations and execution risks.[1][3]

Real-World Impact on Industry and Markets

Microsoft's Azure constraints intensify data center races, benefiting Nvidia but straining power grids globally.[1] Meta's ad AI refinements reshape digital marketing, favoring platforms over traditional media.[1] Tesla's Optimus push accelerates humanoid robotics, impacting manufacturing and labor markets.[1]

ServiceNow's resilience aids enterprise software recovery, though sector rotation persists.[1] S&P projections imply broader equity rallies if beats continue, influencing retirement portfolios.[3] Peak season through February 27 tests durability amid trade frictions like Greenland issues.[2] Consumers see stable pricing, but capex hikes signal innovation pipelines in AI, EVs, and devices.[1]

Analysis & Implications

Tech earnings from January 26-February 2, 2026, paint a bullish yet nuanced picture: aggregate beats mask divergent reactions, with AI capex as the pivot.[1] Microsoft's cloud bottlenecks suggest infrastructure for margins.[1] Meta and Tesla exemplify capex leverage, where short-term spends yield long-term ad/EV/robot moats, potentially widening gaps with laggards.[1]

Implications span markets to geopolitics. S&P 500's 14.3% CY 2026 growth forecast hinges on tech's ~30% index weight; sustained beats could justify 22.2 P/E, but misses risk rotations to value.[3] Capacity limits foreshadow AI "arms races," escalating U.S.-China tensions over chips and energy.[1][2] Morningstar's steady fair values signal confidence in theses, not hype.[1]

For businesses, vertical integration emerges as a hedge against supply shocks.[1] Risks include Fed tightening post-January 28 if inflation ticks up from capex.[2] Overall, these reports cement tech's 2026 growth engine status, prioritizing AI scalability.[1]

Conclusion

The January 26-February 2, 2026, earnings from Microsoft, Meta, Tesla, and others confirm tech's vitality, with strong AI growth and cash flows amid peak season.[1][2] Key drivers—Azure capacity, ad AI, and robot timelines—position leaders for dominance, though capex scrutiny tempers enthusiasm.[1]

Investors should monitor upcoming Alphabet results and S&P beats for confirmation of 14.3% growth trajectory.[3][2] Firms excelling in execution offer stability; capex warriors like Meta promise upside if AI pays off.[1] As Enginerds watches, this week's moves herald a year of innovation-fueled expansion, rewarding patience in volatile markets.[1][2]

References
[1] Morningstar. (2026, February 2). Breaking down tech's wild earnings season so far. https://www.morningstar.com/stocks/breaking-down-techs-wild-earnings-season-so-far[2]
[2] Interactive Brokers. (2026, January 26). Tech rebound soothes Greenland-induced shivers, just as earnings season hits its stride. https://www.interactivebrokers.com/campus/traders-insight/securities/macro/tech-rebound-soothes-greenland-induced-shivers-just-as-earnings-season-hits-its-stride/[3]
[3] FactSet. (2026, January 30). S&P 500 earnings season update: January 30, 2026. https://insight.factset.com/sp-500-earnings-season-update-january-30-2026[4]
[4] Nasdaq. (n.d.). Earnings calendar. https://www.nasdaq.com/market-activity/earnings