Here’s How the Magnificent 7 Have Done So Far This Earnings Season

No matter which investor bucket you may find yourself in, there’s a good chance that your portfolio has at least some exposure to various so-called “Magnificent 7” companies. These seven leading tech companies make up a significant chunk of most indexes, and as such, are among the most important for most investors with any sort of broad exposure to the markets to watch closely. If these companies sneeze, the indexes millions of investors base their retirement savings on could catch a cold.

With that in mind, let’s dive into how individual Magnificent 7 stocks have done so far this earnings season. At a high level, it’s worth pointing out that the Roundhill Magnificent Seven ETF (NYSE:MAGS), an exchange traded fund which tracks this overall grouping, is currently down more than 5% on a year-to-date basis alone. So, while broader indices have rallied back from earlier losses this year, there’s clearly a ways to go for certain names in this group.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) was one of the first to report earnings this past season, posting its Q1 results on February 26. This earnings report was unsurprisingly a beat on the top and bottom line, though the company’s stock price did dip following this report, highlighting just how high expectations are for the world’s largest high-performance chip maker. 

On a year-to-date basis, NVDA stock is currently roughly flat for the year. That’s not bad, considering how other stocks have performed. But compared to some of Nvidia’s peers on this list, there’s plenty that some investors may be left wanting for, given how much growth is being generated in the world of AI chips.

That said, Nvidia’s continued ability to beat sky-high expectations for revenue and earnings growth is remarkable. With revenue beating by $1.4 billion this past quarter (and EPS beating by nearly $0.40 per share), there’s a lot to like about the direction Nvidia could be headed from here. 

Apple (AAPL)

iPhone maker Apple (NASDAQ:AAPL) was among the first of the Mag 7 companies to report earnings this season, with the company delivering both top and bottom line beats. And while the market did not appear to necessarily appreciate these beats (which were nominal in nature, I suppose), there was a lot to like about the company’s recent results that have signaled to some investors this long-term holding is worth hanging on to.

The company’s revenue grew 5% overall on a year-over-year basis, with EPS actually rising faster at an 8% clip. Now, AAPL stock isn’t cheap, trading around 33-times earnings (for a company with one of the slower growth rates on this list). So, there’s going to be plenty of handwringing with any set of results, given that some growth investors will be looking for more from their large-cap tech growth holdings. 

Meta Platforms (META)

Social media giant Meta Platforms (NASDAQ:META) reported strong earnings for its first quarter in late-April. The company’s revenue and EPS both beat by significant margins. Revenue came in at $42.31 billion (ahead of estimates calling for $41.48 billion) and earnings per share came in at a whopping $6.43 per share compared to consensus expectations of $5.24 per share. 

Those kinds of bottom line beats are what investors are looking for right now, and it should be no surprise in this light that META stock is actually up almost 10% on a year-to-date basis. In my view, there are few blue-chip companies of this quality growing at this pace with the kind of balance sheet stability in the market Meta provides. This is one stock I’m not surprised to see bring the overall Mag 7 grouping higher this year.

Amazon (AMZN)

Moving on to e-commerce giant Amazon (NASDAQ:AMZN), the company’s most recent earnings reported on May 1 highlight the company’s increased focus on profitability over revenue growth. That’s not to say Amazon didn’t post both top- and bottom-line beats (the company did). But it’s wider beat on the bottom line, in which Amazon produced $1.59 in EPS compared to consensus estimates of $1.37 per share) show just how important the company’s core AWS business is to its underlying earnings and cash flow growth prospects moving forward.

Unlike some of the other companies on this list that pays dividends, Amazon has reinvested its earnings back into its core business for decades. This has allowed the company to grow much faster than many of its peers, using organic capital formation as its base. I expect these trends to continue moving forward, with more earnings beats to come. 

Alphabet (GOOG)

Alphabet (NASDAQ:GOOG) is next on this list, with the search and cloud giant next expected to report earnings on or around July 22. 

Given that we’re still a ways away from seeing what Alphabet will ultimately report, we should look at the company’s most recent results as indicative of what the tech giant is likely to report in the quarter ahead. 

Alphabet brought in $80.54 billion in revenue in Q1, beating analyst estimates by nearly $2 billion. Perhaps more compellingly, the company also beat EPS estimates of $2.51 per share for the first quarter by $0.30, so some kind of similar earnings beat will likely be expected by the market moving forward. Given Alphabet’s heavy investments being made into AI, investors will clearly want to see these initiatives translate into greater revenue and earnings growth moving forward. 

Microsoft (MSFT)

If anything, many investors could argue that Microsoft (NASDAQ:MSFT) should have come first on this list. After all, this is the largest company on the list, with a market capitalization above $3.4 trillion.

That’s in addition to Microsoft’s year-to-date performance, which has also been among the best of its peer group. With MSFT stock up nearly 9% on a year-to-date basis at the time of writing, it’s clear investors have liked what they’ve seen from the company’s most recent earnings report. In fact, since this company’s most recent earnings report was released, the stock has provided most of its gains for the year.

Microsoft posted top and bottom line beats for its fiscal Q3 report, with EPS coming in at $3.47 compared to estimates of $2.82 in earnings per share, and revenue coming in above the $70 billion mark (well ahead of the $68.4 billion target set by analysts). If the company can continue to leverage AI for its core product and service offerings, there’s a lot to like about where this stock could be headed from here. 

Tesla (TSLA)

Finally, we come to EV maker Tesla (NASDAQ:TSLA), a company that’s dragged down this grouping, for sure. Despite making up some of its earlier year-to-date losses for the year, TSLA stock is still down more than 15% this year, as investors weigh the potential impact of tariffs on the company’s core EV business, as well as the impact CEO Elon Musk is having on the company overall. 

In looking at Tesla’s most recent results posted on April 22, the fundamental story appears to be driving most of this move. Tesla missed on both the top and bottom line, bringing in only $21.3 billion in revenue (compared to estimates of $22.15 billion) and adjusted EPS of $0.27 per share (compared to a consensus of $0.39 per share). That’s not good enough for investors who are banking on growth from this maturing EV maker.

Maybe autonomous robotaxis and robotics are the future of this company. But until it’s going to stop being perceived as an EV maker, Tesla is the Magnificent 7 company with the most downside potential right now, at least according to the market’s views. 

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