Big Tech earnings optimism rises despite US-Iran tensions

Apr 27, 2026, 11:29 am

		0
Stock market data is displayed on a screen ahead of the opening at the New York Stock Exchange. /AFP

Investor expectations for major U.S. technology companies are rising despite escalating geopolitical risks from the ongoing U.S.-Iran conflict, according to Bloomberg on April 26.

While U.S. stock index futures declined amid prolonged tensions and the continued blockade of the Strait of Hormuz, optimism surrounding corporate earnings remains strong.

Futures for the S&P 500 slipped around 0.2% after closing at a record high on April 24, while Brent crude rose 1.9% to exceed $107 per barrel.

Although investor anxiety has increased following the cancellation of a U.S. negotiation delegation to Pakistan by Donald Trump, markets have not reacted entirely negatively.

Francis Tan, Asia chief strategist at Indosuez Wealth Management, said, “Markets are experiencing a rapid upward trend driven by corporate earnings and the AI boom,” adding that while geopolitical risks are not ignored, they are not currently seen as a decisive factor.

Global markets opened near record highs, with the S&P 500 expected to post its strongest monthly gain since late 2020.

Analysts note that while rising oil prices could weigh on markets by increasing inflation and dampening expectations for interest rate cuts, strong earnings from technology companies may offset these pressures.

Bloomberg strategists said, “Oil supply concerns due to delayed U.S.-Iran negotiations are pushing prices higher, which could pressure growth stocks. However, this week’s Big Tech earnings could counterbalance that impact and sustain positive market sentiment.”

Major technology firms are set to report earnings this week, including Alphabet, Microsoft, Amazon, and Meta Platforms on April 29, followed by Apple on April 30.

Together, these companies account for approximately $16 trillion in market capitalization, representing about one-quarter of the S&P 500.

Market expectations are broadly positive, supported by continued growth in AI investment and cloud services.

Alphabet is expected to benefit from strong cloud revenue growth and increased search advertising, alongside its ongoing investments in AI infrastructure.

Microsoft is projected to see rising demand for AI services through its cloud business and collaboration with OpenAI.

Amazon’s AI-related services are reportedly growing into a $15 billion annual business, while Meta is expected to boost advertising revenue through AI-driven recommendation systems.

Apple is also forecast to deliver solid results, driven by iPhone sales and growth in services such as iCloud, Apple Music, and the App Store, with particular attention on improving performance in the Chinese market.

Despite geopolitical uncertainty and rising energy costs, strong fundamentals in the technology sector continue to support investor confidence.