Gotrade News - The busiest week of Q1 2026 earnings season kicks off with over 20 major U.S. companies set to report results. Tesla (TSLA) and Microsoft (MSFT) headline the schedule as the two most closely watched names this week.
Options data signals significant post-earnings moves across the board. Tesla carries an implied move of 6.4% ahead of its Wednesday (Apr 23) report, while Microsoft follows on Tuesday (Apr 29).
- Key Takeaway 1: Tesla reports Wednesday (Apr 23) with a 6.4% implied move as robotaxis expand to 9 U.S. cities in the first half of 2026.
- Key Takeaway 2: Microsoft is down 22% from its peak, but 39% Azure growth and 15 million Copilot licenses could spark a recovery on Apr 29.
- Key Takeaway 3: Over 20 major names including Boeing (BA) and Intel (INTC) also report this week with Intel showing the highest implied move at 11.1%.
Tesla: Robotaxi Expansion Takes Center Stage
Tesla shares trade at $400.41, down 18% from their all-time high. Morgan Stanley analysts estimate the U.S. robotaxi addressable market at $1 trillion to $2 trillion.
The company's robotaxi service is now live in four cities including Dallas and Houston. Elon Musk targets five additional metro areas in H1 2026 including Las Vegas, Miami, and Phoenix.
Q1 2026 deliveries came in at 358,023 units, roughly 12,000 below Wall Street expectations. At 240 times adjusted earnings, the stock's premium valuation makes Wednesday's report a pivotal moment for shareholders.
Microsoft: Undervalued Amid AI Momentum
Microsoft trades at $422.79 with a P/E ratio of 26.4, well below its five-year average of 32.9. Closing that gap would require approximately a 24% climb from current levels.
Azure cloud grew at least 39% year-over-year across the first two quarters of fiscal 2026. The company invested $118 billion in data centers over the past four quarters to meet surging demand.
AI product Copilot reached 15 million licenses by end of December with 160% year-over-year growth. At just 3.7% penetration among 400 million total Microsoft 365 licenses, the runway for adoption remains enormous.
One notable risk is OpenAI's 45% share of Microsoft's $625 billion order backlog. OpenAI has since cut its spending forecast from $1.4 trillion to $600 billion through 2030.
Beyond Tesla and Microsoft, Boeing reports on Wednesday (Apr 23) and Intel on Thursday (Apr 24). Intel carries the highest implied move at 11.1% among large-cap reporters this week.
Last week's results showed 9 out of 12 companies stayed within options-implied ranges. Only 5 out of 12 moved higher post-announcement, a reminder that elevated volatility does not guarantee upside.
This week serves as a critical test for both the AI growth narrative and autonomous vehicle ambitions in U.S. markets. Investors should focus on forward guidance rather than backward-looking quarterly numbers.
Sources: Barchart, The Motley Fool
