Hyperscaler 1Q:26 Update: Confidence Grows in Compute ROI Case

研报英文原文证据摘录

Hyperscaler 1Q:26 Update: Confidence Grows in Compute ROI Case

Equity Research

Price Target Change — May 20, 2026

Internet

U.S. Software

Hyperscaler 1Q:26 Update: Confidence Grows

in Compute ROI Case

Accelerating Growth & Solid Margins Bolsters Case for

Cloud Providers

Our Call Ken Gawrelski

See market confidence improving in companies monetizing compute investments directly Equity Analyst | Wells Fargo Securities, LLC

Ken.Gawrelski@wellsfargo.com | 617-210-3707

through cloud business driven by combo of accel'ing cloud revs (immediate monetization),

Michael Turrin, CFAstable-to-improving margins (ROI) and rapidly rising backlogs (durability).

Equity Analyst | Wells Fargo Securities, LLC

Michael.Turrin@wellsfargo.com | 628-629-7565

See stock performance since April 1 reflective of increasing comfort with the return Zachary Morrissey

profile of GOOGL (+30% vs. SPX 12%) and AMZN (+23%) on AI compute capacity Associate Equity Analyst | Wells Fargo Securities, LLC

investments. Notable GOOGL, the stock w/ largest '27 CapEx revision, is the leading Zachary.Morrissey@wellsfargo.com | 212-214-5344

hyperscaler performer. Conversely, META (+4%) has lagged as benefits beyond ads Austin Williams

growth, which has been robust, have longer lead time. Expect current narrative to prevail Associate Equity Analyst | Wells Fargo Securities, LLC

through 2Q, but new AI products/services could be a 2H unlock for META. Austin.R.Williams@wellsfargo.com | 628-629-7572

David Umansky

Another quarter of reported cloud revenue acceleration combined with confidence in Associate Equity Analyst | Wells Fargo Securities, LLC David.Umansky@wellsfargo.com | 212-214-1406

the durability of the trend from $371B of backlog growth (+23% Q/Q), $319B (86%)