SECTOR · MEGACAP TECH

Q1 2026 Big Tech Earnings Review
Inflection Point of $700B AI Capex Cycle

MSFT·META·GOOGL·AMZN simultaneously raised their 2026 capex guidance at the end of April. With a combined $700B in capital expenditures congealing due to memory, power, and thermal management bottlenecks, the AI infrastructure cycle has entered the second stage of "demand visibility vs. margin pressure." The core bottleneck has shifted from GPU to HBM·power·advanced packaging.

Report ID DESK-SECTOR-26050101 Coverage US Megacap + KR Memory Style STACKER Horizon Mid (1–6M)
Big4 Combined Revenue (Q1 2026)
$465.4B
+22% YoY · Acceleration from Previous Quarter
Big4 Capex Guidance (FY26)
~$700B
META·GOOGL Raised, AMZN $200B New
AWS Revenue Growth
+28% YoY
Highest Growth Rate in 15 Quarters
MSFT Commercial RPO
$392B
+51% YoY · Increased Demand Visibility
EXECUTIVE SUMMARY

Three Conclusions, and One Caveat

Conclusion 1 — The capex cycle is not over. The Q1 2026 results and guidance of the four Big Tech companies announced on April 28-29 suggest not just "continued AI investment" but acceleration. Alphabet raised its FY26 capex guidance from $175–185B to $180–190B, and Meta raised the $115–135B range to $125–145B. Amazon specified FY26 ~$200B, and Microsoft officially stated that "FY26 growth rate will exceed FY25." FACT

Conclusion 2 — Demand visibility justifies capex. Microsoft's commercial RPO is $392B(+51% YoY), and Google Cloud's backlog has doubled in one quarter to exceed $460B. AWS revenue growth rate recorded the highest in 15 quarters at 28%. The key change this quarter is that the GW-scale data centers being built by hyperscalers are backed by confirmed multi-year contracts. FACT

Conclusion 3 — The bottleneck has shifted to HBM and power. SK Hynix recorded its highest-ever quarter with Q1 2026 revenue of KRW 52.58 trillion and an operating profit margin of 71.8%, and Samsung Electronics' semiconductor division exceeded 2025 annual semiconductor profits in a single quarter with a single-quarter operating profit of KRW 53.7 trillion. Both Samsung and SK Hynix officially warned that "HBM supply shortages will continue until 2027," and hyperscalers' cumulative HBM purchase commitments exceed 3 years of forward supply. FACT

One Caveat — Meta's Signal

Meta plummeted -7% after hours despite the earnings beat. The market interpreted the $107B quarterly single commitment step-up and capex increase as questioning ROI visibility. In addition, Q1 net income of $26.8B includes $8B in one-time tax benefits, so the appropriate normal EPS is lower than the figure reflected in the consensus. INFERENCE This is interpreted as a signal that the market is starting to price in not "capex acceleration itself" but "the section where the pace of acceleration exceeds revenue recognition."

Mason View · Inflection Signal
According to the "Own the Bottleneck" principle, it is time to gradually shift the center of gravity of the portfolio from GPU(NVDA) to memory, power, and thermal management. While maintaining core holdings of NVDA, increasing the proportion of SK Hynix, Vertiv, and Eaton pair trade could be the main source of alpha in the next two quarters.
SECTION 01 · Q1 2026 EARNINGS SCORECARD
FY26 Capex Guidance — April Guidance Increase
CHART · CAPEX

Source: Each company's 4/29~30 earnings release · Unit USD Bn · MSFT is estimated and converted due to accounting year differences

Big5 Quarterly Performance Summary (Q1 2026)
DATA · EARNINGS
CompanyRevenueYoYKey KPIQuarterly CapexFY26 Capex GuideStock ReactionRating
Microsoft US $77.7B +18% Azure +40% / Cloud $49.1B / RPO $392B(+51%) $34.9B Acceleration Compared to FY25 Rise OW
Alphabet US $109.9B +20% GCP $20.0B(+63%) / Backlog $460B / Gemini API +60% QoQ $35.7B $180–190B (↑$5B) +6% OW
Amazon US $181.5B +13% AWS $37.6B(+28%, 15Q High) / Bedrock Token +170% QoQ $44.2B ~$200B Rise OW
Meta US $56.3B +33% Advertising +33% / Quarterly Commitment Step-Up $107B ~$30B* $125–145B (↑$10B) −7% EW
Apple US $143.8B +16% iPhone +23% / Services +14% / GM 48.2% N/A N/A Rise EW

* Meta quarterly capex is estimated / Source: CNBC·Each Company IR (2026-04-29~30) · Cross-Verification Yahoo Finance, Reuters

SECTION 02 · AI CAPEX CYCLE

"Demand is Real, Can Margins Endure?"

The most important data this quarter is not revenue or EPS, but backlog. Microsoft's commercial RPO of $392B(+51% YoY) and Google Cloud's backlog of $460B (doubled QoQ) provide the strongest rebuttal to the two-year-old question of "Is AI investment a bubble?" Both figures are multi-year binding contracts and partially guarantee the payback period of capex. FACT

However, at the same time, the pressure factors are also clear. MSFT's gross profit margin declined YoY due to the impact of "AI infrastructure scaling," and Amazon's 12-month FCF decreased by -95% YoY to only $1.2B. Meta explicitly acknowledged rising component prices, raising the top of its capex guidance to $145B. This suggests that the bottom of the 2026-2027 margin cycle is forming.

Variables the Stock Price Reacted To — Backlog vs. Capex Pace

The market asks the same question differently each quarter.

Structural Implications
Approximately 50% or more of the $700B Big4 capex flows to NVDA, AVGO, memory, and power infrastructure. Even if cloud revenue does not absorb capex, the infrastructure supply chain already recognizes it as revenue. The "Own the Bottleneck" principle is clearer than ever.