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Four of the magnificent 7 prepare to report quarterly earnings this week, with numbers from Microsoft, Meta, Tesla, and Apple that could set the tone for the entire sector. The earnings come after several months of rotation away from tech stocks into value stocks such as large-cap cyclicals and small caps.
 

Tesla Q4 earnings preview

Tesla reports after the close on Wednesday.

Q4 earnings come after a record quarter in Q3 with 497,099 deliveries and revenue of $28.1 billion. However, this was due to a pull-forward effect as consumers rushed to purchase before the tax credit expired.

Deliveries for Q4 were 418,227, a 15.6% decline YoY and below analysts' forecasts. BYD, a Chinese competitor, took the crown as the world’s largest battery electric vehicle manufacturer.

Expectations are for Tesla to post EPS falling 39% to $0.44, as revenue dropped 3.6% to $ 24.8 billion. Meanwhile, the electric car maker's profit margin is expected to have fallen to 17.1% from 18%. Compared to the previous quarter. As the forward guidance, unless they're expecting the company to forecast Q1 revenue growth of 19.8 percent 23.2 billion, with the gross profit margin slipping further to 16.7%

In addition to the numbers, investors will be focusing on updates surrounding robotaxis, Full Self Driving and the company’s emerging AI hardware programs.
 

How to trade TSLA earnings?

Tesla trades above its rising trendline dating back to April. The price ran into resistance at 498 before easing lower and briefly spiking below the trendline to a low of 420. From here, the price has recovered higher, pushing back above the 50 SMA and the rising trendline support to 450. The RSI has risen above 50, and the MACD shows a bullish crossover, keeping buyers hopeful of further gains.

Should the 50 SMA hold, buyers will look to rise towards 470 resistance, the October and November highs, before bringing 498 and fresh record highs into focus.

Should sellers take out the 50 SMA and 417 support, this creates a lower low towards 385, the November low.
 

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Microsoft Q2 earnings preview

Microsoft reports on Wednesday, and is expected to post EPS of $3.93, up 21% year on year, on revenue of $80.2 billion, up 15.3% year on year.

Investors will be closely watching Azure cloud growth, the impact of AI integrations, notably Copilot and OpenAI, and the company's ability to manage rising capital expenditures. The markets will want to see continued margin strength and evidence that heavy AI investments are fuelling growth.

In its first quarter results, Microsoft reported Capex increased 74% year over year to 34.9 billion. During the earnings call, the CFO said the company expected total spend to increase substantially and that 2026 growth rates would be higher than 2025.

Earnings come as Microsoft trades around $445, well off its 52-week high of $555, and down 6.8% year to date in 2026. Analysts remain bullish surrounding the stock with a mean target of $618.
 

How to trade MSFT earnings?

Microsoft has been trading in a falling channel since October, and the 50 SMA crossing below the 200 SMA is a death cross signal. The price has recovered from the 440 low, and the RSI is pointing higher. However, the downtrend remains for now.

Should momentum continue, buyers will need to rise above 480, the confluence of the 50 & 200 SMA, and the upper band of the falling channel. Above here 492 comes into play with a rise above here, creating a higher high.

Sellers will look to break below 440 to create a lower low, bringing 422, the May low into focus.
 

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Apple Q1 earnings preview

Apple will report fiscal Q1 results on January 29 after the close, when investors will be keen to see whether one of the world's few multi-trillion dollar companies can continue to grow earnings amid mixed demand and rising expectations surrounding AI

These results come out during the crucial holiday shopping period, which is typically the most important for Apple

Expectations are for revenue to rise 11.3% to $138.42 billion, whilst net income is expected to rise 8.4% to $39.38 billion, and earnings per share are forecast to rise 11.2% to $2.67.

The spotlight will fall once again on iPhone demand, particularly in China, where Apple has faced pricing pressures and challenges from domestic rivals. While Apple no longer discloses unit sales, the numbers for new trends are closely scrutinised as a proxy for underlying demand.

China will be a key focus both as the manufacturing base and as an end market. Apple has previously noted the tougher trading environment in the region, and Q1 fiscal results will provide further insight into whether this continues. Attention will also be on any commentary regarding geographic diversification of the supply train.

With regard to AI, Apple’s partnership with Google and Siri is seen as reinforcing the iPhone’s role as a gateway to new AI features, potentially easing competitive concerns.

Services are an increasingly important focus which could support gross margins. Service revenue is expected to continue rising at a double-digit pace, helped by the iCloud, AppleCare, and advertising formats.
 

How to trade AAPL earnings

Apple's share price has trended higher since April, forming a series of higher lows and higher highs. The price reached a record high of 288 in December before easing to the 245 support zone, testing the rising trendline and the October low. The RSI is overbought, so sellers should be cautious, and there could be a period of consolidation or a move higher.

If the 245 support holds, buyers will look to rise above 265, the November low and the 50 SMA at 270. Above here, the 298 level comes back into focus.

Should sellers break below the 245 level, this exposes the 200 SMA at 234.
 

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