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

Research evidence excerpt

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

Specialist Sales J P M O R G A N

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 | mark.schilsky@jpmorgan.com | +1 (212) 622-2668

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.