The most exciting time of the year is finally here – earnings season.

This is when prospective investors eagerly wait to see how the market is doing and professional investors try to time their moves. While the earnings season lasts for over two months, some companies attract higher attention and interest as compared to others. These companies set the market momentum.

As the biggest and most well-known companies in their respective industries, these stocks will set the tone for the rest of the year. They’re also on the watchlist because of the exceptional results reported in the previous earnings season. Let’s take a look at them in detail and see why their earnings matter. 

Microsoft (MSFT)

Tech giant Microsoft (NASDAQ:MSFT) is set to report results on April 25. The company beat analyst estimates for the past four quarters. Driven by its investments in the artificial intelligence (AI) sector, Microsoft is steadily moving higher.

The company has integrated AI into its products and services and continues to enhance its offerings. MSFT hit $400 after the company reported results in January and is trading for $412 today, up 11% year-to-date (YTD). 

In the previous quarter, Microsoft reported a revenue of $52.7 billion and a net income of $16.4 billion. It saw the highest growth in the intelligence cloud segment. Microsoft expects revenue in the range of $60 billion and $61 billion for the quarter.

Having blown past expectations in the previous quarter, high hopes and anticipation precedes upcoming Microsoft’s results. Adding new AI features to its products, it recently announced a $2.9 billion investment in Japan over the next two years. 

The company’s paid subscribers for Azure AI are increasing. And it closed the Activision Blizzard deal a few months back. While we may not see its impact on the financials right now, it will be worth looking out for in the next quarter. BMO Capital analyst has raised the price target of the stock to $465. Currently, Wall Street analysts have a strong buy rating for the stock. 

Nvidia (NVDA)

The market eagerly awaits Nvidia‘s (NASDAQ:NVDA) results since its impact on the entire tech sector is huge. The best tech stock to own, Nvidia has made several investors rich.

I had recommended buying Nvidia when it was trading as low as $222 in September 2021 and if you had followed my recommendation, you would be sitting on gains of 293% today. The company is set to report results on May 22. 

Nvidia’s fourth-quarter results blew past expectations with revenue tripling to hit $22.10 billion, up 265% year-over-year (YOY). And, net income stood at $12.29 billion, up 769% YOY. Third-quarter revenue was $18 billion.

Additionally, NVDA introduced the latest AI chip which performs tasks 30 times faster than its predecessor. While we may not see its impact on the financials this quarter, expect a surge in sales for these chips. The company aims for a revenue of $24 billion this quarter. 

Currently, Nvidia holds 80% of market share, and the high demand for chips will help the company maintain its dominance. Trading for $874 right now, it is up 81% YTD. The stock soared to $926 (up 9%) after the previous quarterly results. Further, another quarter of record results is set to take it higher next month. 

Netflix (NFLX)

Streaming giant Netflix (NASDAQ:NFLX) reports tomorrow amidst high market anticipation. Trading at $614 right now, the stock is up 31% YTD. This rally began after it reported a blowout fourth quarter.

And, Netflix managed to report impressive user growth and an improvement in the top and bottom lines. Hence, investors will be keen to see where this business is going now. The expectations are running high and revenue is projected to increase by 13%.

In the previous quarter, the company reported earnings of $938 million, and the revenue was up 12% YOY to hit $8.83 billion. Also, its subscribers grew by 260.28 million, up 12.8%. While it was a record quarter for the company, investors expect the same momentum throughout the year.

Moreover, subscriber growth will remain in focus during the results since it is a pivotal metric for business growth. Netflix rebounded after a 2022 slowdown, and the future path looks interesting. Management expects to see 13% revenue growth in the quarter.

Therefore, analysts are bullish, with several raising the price target. Macquarie analyst has raised it to $685 with an outperform rating. Also, a Guggenheim analyst upped the target to $700 with a buy rating, citing strong growth.

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.