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META, GOOGL Earnings: Advertising Results Remain Key

Key Takeaways

  • The earnings docket this week is stacked with Mag 7 members.
  • META and GOOGL are on the schedule, with advertising results from each remaining an important metric to watch.
  • Both companies have consistently posted better-than-expected advertising results for years now.

We have entered the thick of the 2026 Q1 earnings season, with a stacked earnings schedule led by many members of the beloved Magnificent 7 group.

Alphabet (GOOGL - Free Report) and Meta Platforms (META - Free Report) are among those scheduled to unveil quarterly results. Advertising revenue is a significant chunk of each company’s business and will undoubtedly be an important metric in the releases. Let’s take a closer look at what’s expected.

Meta’s Sales Growth to Accelerate?

Earnings and revenue expectations for the upcoming release have drifted higher modestly over recent months for META, a positive takeaway heading into the release. Solid growth is expected for the tech giant, with earnings forecasted to climb 4.4% on 31% higher sales. Notably, the forecasted sales growth rate reflects a big acceleration relative to recent periods.

Below is a chart illustrating META’s YoY sales growth rates on a quarterly basis. Please note that these are not actual sales figures.

Zacks Investment Research
Image Source: Zacks Investment Research

Concerning Advertising revenue, the Zacks Consensus Estimate presently stands at $54.3 billion, suggesting a sizable 31% growth rate from the year-ago period. The tech titan has regularly exceeded our expectations for this metric as of late, with the most recent beat totaling roughly $1 billion.

Zacks Investment Research
Image Source: Zacks Investment Research

Alphabet Keeps Beating Expectations

Both EPS and sales expectations for Alphabet have seen bullish revisions over recent months, rising modestly from near the beginning of February. Earnings are forecasted to fall 6% YoY, whereas sales are expected to see a strong 20.5% charge higher. Like META, the forecasted sales growth rate reflects an acceleration relative to recent periods, continuing an established trend we’ve seen since the end of 2022.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus estimate for Advertising revenue stands at $76.9 billion, nearly 15% higher than the year-ago mark of $66.9  billion. The company has continued to positively surprise concerning its advertising results, stringing together six consecutive beats.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Earnings season kicks into a much higher gear this week, with a wide variety of companies scheduled to report quarterly results.

Among the bunch are two Magnificent 7 members: Alphabet (GOOGL - Free Report) and Meta Platforms (META - Free Report) . Their respective advertising results will be important metrics to watch in their releases, given the heavy top-line contributions, though it’s worth noting that each has yet to negatively surprise on the metric in years now.

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