Yahoo Finance·2026-03-02 21:12Microsoft - Microsoft spent $37.5 billion on capital expenditures and generated $5.9 billion in free cash flow in the quarter, returning $12.7 billion to shareholders through dividends and buybacks [1] - In Q2 of fiscal 2026, Microsoft reported a revenue increase of 17% to $81.3 billion and a 24% jump in earnings per share [2] - Microsoft has a solid backlog of $625 billion and is aggressively expanding in AI, with operating margins expanding to 47% despite significant investments [2] - Analysts expect Microsoft's earnings to increase by 20% in fiscal 2026 and 14.4% in fiscal 2028, with a "Strong Buy" rating from 41 out of 50 analysts [6] Nvidia - Nvidia reported a 73% year-over-year revenue increase to $68 billion, with data center revenue up 75% to $62 billion, driven by generative AI adoption [8] - The company generated $97 billion in free cash flow for the full year, returning $41 billion to shareholders, while adjusted earnings increased 82% in Q4 [8] - Analysts expect Nvidia's earnings to increase by 57.8% in fiscal 2027 and 20.3% in fiscal 2028, with a "Strong Buy" rating from 45 out of 50 analysts [9] Alphabet - Alphabet's revenue surged 18% year-over-year to $113.8 billion, with earnings increasing 31% to $2.82 per share [10] - Google Cloud revenue climbed 48% to $17.7 billion, with a backlog doubling to $240 billion, indicating strong future prospects [11] - Analysts expect Alphabet's earnings to increase by 7.3% in fiscal 2026 and 14.7% in fiscal 2027, with a "Strong Buy" rating from 47 out of 55 analysts [12] Market Context - The "Magnificent Seven" stocks, including Microsoft, are showing signs of fatigue early in 2026, leading to debates among investors about their future performance [5] - Despite recent underperformance, the fundamentals supporting these mega-cap tech stocks remain intact, suggesting a potential accumulation opportunity for investors [13][14]