- Solve real problems with our hands-on interface
- Progress from basic puts and calls to advanced strategies
Interactive Options Course
Posted November 2, 2026 at 10:45 am
Last week, the AI trade began to crack further with Alphabet’s release, missing on both the top and bottom lines. Mirroring Meta’s print from the prior week, massive AI capex turned free cash flow negative, alarming investors. Even with Google Cloud accelerating 103%, softening core search growth fueled fears of AI cannibalization, sending the stock tumbling toward one of its steepest post-earnings drops.1
Microsoft’s report reinforced the market’s growing skepticism over ROI. Despite Azure expanding near 40% and enterprise Copilot adoption scaling, surging infrastructure spend squeezed operating leverage. Even with impressive cloud growth, Wall Street is no longer giving these providers an open checkbook, focusing instead on compressing capital efficiency.2
Amazon results on Thursday showed how the company faces a distinct strategic challenge as AI agents begin to rewire e-commerce discovery. With platforms like Meta Muse increasingly handling product recommendations and direct checkout, the traditional Amazon search bar risks disintermediation. Slower sequential growth in high-margin retail advertising underscored this emerging threat to sponsored-product auction revenues.3
Outside of Big Tech, Caterpillar delivered a major beat driven by the very picks-and-shovels powering data center expansion. A 96% surge in backlog and an 18% jump in its Power & Energy segment highlighted relentless demand for industrial backup generators and turbines. Yet even CAT retreated post-print, hit by capacity constraints and broader profit-taking across premium multiples.4
Monday after-the-bell, all eyes will be on Apple results, out with a rare Monday afternoon report following six years of reporting fiscal Q4 on a Thursday.
Now with 60% of S&P 500 companies reporting, the blended EPS growth rate moved higher to 30.2% last week, from 29.5% the week prior. Revenue growth also saw a bump to 13.1% from 12.7% in the week prior.5
Source: Wall Street Horizon
Academic research shows that when a company confirms a quarterly earnings date that is later than when they have historically reported, it’s typically a sign that the company will share bad news on their upcoming call, while moving a release date earlier suggests the opposite.6
This week we get results from a number of large companies on major indexes that have pushed their Q3 2026 earnings dates outside of their historical norms. Nine companies within the S&P 500 confirmed outlier earnings dates for this week, all of which are later than expected and therefore have negative DateBreaks Factors*. Those companies are: UDR Inc. (UDR), Ametek (AME), Fiserv (FISV), Vivmark Residential (VMRK), Edwards Lifesciences Corp (EW), Global Payments (GPN), DTE Energy (DTE), Kimberly-Clark (KMB) and Charter Communications (CHTR).
* Wall Street Horizon DateBreaks Factor: statistical measurement of how an earnings date (confirmed or revised) compares to the reporting company’s 5-year trend for the same quarter. Negative means the earnings date is confirmed to be later than historical average while Positive is earlier.
The peak weeks of the Q3 earnings season are expected to fall between October 26 – November 13, with each week expected to see over 1,800 reports. Currently, November 5 is predicted to be the most active day with 1,155 companies anticipated to report. Thus far, 80% of companies have confirmed their earnings date, and 30% have reported (out of our universe of 11,000+ global names). The remaining dates are estimated based on historical reporting data.
Source: Wall Street Horizon
The takeaway from early earnings is clear, the era of rewarding indiscriminate AI capital expenditure may officially be over. Markets have transitioned from celebrating massive compute buildouts to demanding cash-flow returns, leaving mega-caps vulnerable until AI software monetization catches up to capex. As we head into the second peak week of the season attention will focus on a broader swath of sectors. We’ll see if those results are more palatable to investors.
—
Originally Posted November 2, 2026 – Can Q3 Earnings Get Back on Track After Being Rattled by Big Tech’s AI Prints?
1 Alphabet Third Quarter 2026 Earnings Results, October 28, 2026, https://s206.q4cdn.com
2 Microsoft Fiscal Q1 2027 Earnings Results, October 30, 2026, https://www.microsoft.com
3 Amazon Third Quarter 2026 Earnings Results, October 29, 2026, https://ir.aboutamazon.com
4 Caterpillar Third Quarter 2026 Earnings Results, October 29, 2026, https://www.caterpillar.com
5 FactSet Earnings Insight, John Butters, October 30, 2026, https://advantage.factset.com
6 Time Will Tell: Information in the Timing of Scheduled Earnings News, Journal of Financial and Quantitative Analysis, Eric C. So, Travis L. Johnson, Dec, 2018, https://papers.ssrn.com
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Wall Street Horizon and is being posted with its permission. The views expressed in this material are solely those of the author and/or Wall Street Horizon and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Related Articles
Join The Conversation
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!