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Specialist Sales JPMORGAN 23 July 2026

GOOGL Buy the Pullback, NOW Bear Case Hibernating?, MSFT Earnings Preview

JPM TECH SKETCH: GOOGL Cloud Now a TPU Story, NOW Q2 Better Than Feared, MSFT Q4 Preview – No Model, No Chip, No Hope? Mark Schilsky | |

SCHILSKY’S SNAPSHOT WTI is back above $90…The 10-year is at 4.7%...Ask Marissa Gitler, our Macro Specialist, if you have any macro- related questions.

- GOOGL Q226 Earnings – Cloud is Now a TPU Story: My full take is below, but here’s a snippet: Ultimately, what investors want to see with GOOGL are EPS revisions. We didn’t get that this quarter and so the stock trades down T+1. But if you have any sort of duration, this is exactly the type of quarter you want to see: Cloud accelerating, Backlog up meaningfully without any mega-deals, and TPU sales starting to ramp. GOOGL is now firmly both a Search company and an AI factory. As Doug said: buy the pullback. Check out Doug’s GOOGL Q226 Strength in Cloud & Search (Buy the Pullback).

- NOW Q226 Earnings – Better than Feared (But Sustainably So?): NOW is trading (squeezing?) +6% higher pre- market after producing a quarter that I can only describe as a modest beat on cRPO and Subscription Revenues. But, and this is a big ‘but’, management noted in the release that the beat was due primarily to strong US Federal demand, which I would expect Bears to question the sustainability of such a tailwind. With that said,the overall print was definitely better-than- feared – and given the Bearish positioning, I’m not surprised the stock is trading up moderately pre-market. Check out Samik’s NOW Q226 Results to Calm Fears.

- MSFT Q426 Earnings Preview – No Model, No Chip, No Hope?:MSFT enters earnings season as a funding short for many – and an alpha short for some. No matter how you slice it, sentiment on MSFT is terrible. It likely has the worst overall sentiment amongst the Mag 7 (and that’s saying something). Could Q4 begin to turn that sentiment more positive? Sure. Azure could surprise to the upside and the margin guide could be better-than-feared. But until MSFT demonstrates some more tangible progress in AI (Copilot progress, proprietary LLM, proprietary chip, etc.), it will likely remain on the Battleground. My full Preview is below.

- JPM Research: GOOGL Q226 Strength in Cloud & Search (Buy the Pullback) | NOW Q226 Results to Calm Fears | TSLA Q226 Lower Estimates on Margin Miss & Ramping Investments | T Q226 Convergence Playbook Scaling | IBM Outlook Implies NT Headwinds | VRSN Confirmed .Web Registry | PEGA Q226 Weaker-than- Expected

- JPM Events: Satellite Expert Tim Farrar Webinar (SPCX, VSAT, TMUS, etc.) Monday July 27th at 11AM EST – with Sebastiano Petti REGISTER HERE

Media Q226 Earnings Preview Webinar (DIS, LYV, TKO, FOXA, etc.) Tuesday July 28th at 10AM EST - with David Karnovsky & Mark Schilsky REGISTER HERE

Specialist Sales JPMORGAN 23 July 2026

NEWS – DESK COLOR – JPM TECH RESEARCH GOOGL Q226 Earnings – Cloud is Now a TPU Story: GOOGL reported a solid quarter: Search in line at +17% Y/Y and Google Cloud beat at +82% Y/Y. The obvious disappointment was on Operating Income which only slightly beat the Street, but missed investor expectations modestly (even though Google Cloud margins were great). In other words, EPS estimates are unlikely to move materially. Yes, some people are chalking up the pre-market -5% move to the upwards Capex revision, but I think the real ‘culprit’ is the mere fact that Buyside EPS numbers barely moved (and for some went slightly lower).GOOGL Q226 Earnings Release

This is the first time this disclosure was made in an earnings release: “Google Cloud generates product revenues primarily from the sale of TPU systems.” [Are we going to get two Google Cloud Revenue lines in 2027? One Services and one Product? Probably, yes?]

This is a fun stat: “Other income reflected a net gain of $98.0 billion, primarily the result of net unrealized gains on our equity securities.” [SPCX, Anthropic]

From Sundar’s Prepared Remarks: “Next, the Gemini app, which now has 950 million monthly active users, with daily active users tripling in the last year.”

From Doug’s GOOGL Q226 Strength in Cloud & Search (Buy the Pullback): “First, on…