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Investors will get their first look into how Big Tech companies are faring on Wednesday, with Google-parent Alphabet , Tesla , IBM and ServiceNow set to report after the bell. Expectations heading into both reports are high, with analysts on average estimating year-over-year earnings growth of more
TITLE: Wall Street’s first Big Tech health check: earnings of Alphabet, Tesla, IBM, ServiceNow
META: Analysts expect >25% YoY earnings growth for Alphabet and Tesla as Wall Street eyes the $6 trillion Big Tech earnings batch that equals 21% of US GDP.
Investors will get their first look at how the four biggest U.S. tech firms—Alphabet, Tesla, IBM and ServiceNow—performed after the bell on July 22, with analysts forecasting more than 25% year‑over‑year earnings growth for Alphabet and Tesla and modest profit expansion for IBM and ServiceNow [1].
| At a glance | |
|---|---|
| Companies reporting | Alphabet, Tesla, IBM, ServiceNow |
| Expected YoY earnings growth | >25% for Alphabet & Tesla; slight expansion for IBM & ServiceNow |
| Combined market cap | ≈ $6 trillion, ~21% of US GDP |
| Market reaction (pre‑market) | Broad equity sell‑off, S&P 500 stalled below early‑June highs; oil price rise weighed on stocks [1] |
Analysts, using LSEG data, project that Alphabet and Tesla will post earnings growth exceeding 25% versus the same quarter a year ago, outpacing the broader market’s average growth rate [1]. IBM and ServiceNow are expected to deliver only modest profit increases, reflecting a more tempered outlook for legacy software and services. The combined market capitalization of the four firms—about $6 trillion—represents roughly one‑fifth of U.S. GDP, underscoring the macro‑economic weight of this earnings batch [1].
The significance of these filings extends beyond individual stock moves. Ben Emons of FedWatch Advisors notes that a cluster of earnings from firms that collectively account for 21% of GDP can influence macro‑economic narratives, especially as AI‑related capital expenditures filter through supply chains [1]. A strong showing from Alphabet or Tesla could validate the ongoing AI spending surge, while IBM and ServiceNow results may signal stabilization in downstream software and services, potentially buoying the broader memory and software sectors. Conversely, any disappointment could exacerbate market fragility; IBM’s preliminary Q2 numbers already triggered its worst‑day move—down 25% on July 14—highlighting how earnings miss can swiftly erode investor confidence [1].
Early Wednesday trading saw equities slide, with the S&P 500 failing to breach its early‑June peak and higher oil prices adding pressure to the market breadth [1]. The pre‑market environment suggests that investors are weighing both the upside potential of AI‑driven growth and the downside risk of earnings shortfalls across this high‑impact group.
The outcome of this “Big Tech health check” will either reinforce confidence in AI‑driven growth or expose vulnerabilities in the sector, setting the tone for equity markets as they head into the final quarter of the year.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Jul 28, 2026 · How we report
The S P 500 is a stock market index that tracks the performance of 500 large-capitalization companies listed on United States stock exchanges. It is maintained by S&P Dow Jones Indices and serves as a benchmark representing approximately 83% of the total market capitalization of U.S. public companies.
Companies are selected for the S P 500 by a committee based on specific criteria established for the S&P 1500 index. These criteria determine which large-capitalization stocks are included in the index.
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