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3 Big Tech Earnings Reports to Watch as AI Bills Keep Growing

Big tech earnings arrive this week, with Microsoft, Alphabet, and Amazon all releasing quarterly studies.

In their newest quarters, Google Cloud grew 82%, Azure 42%, and Amazon Web Services (AWS) 37%, whereas all three spent closely on AI infrastructure.

Microsoft and Alphabet report on Wednesday, hours after the Federal Reserve pronounces its charge determination at 2 p.m. Eastern Time (ET). Amazon follows on Thursday.

Microsoft’s Azure Faces a forty five% Growth Bar

Microsoft studies after the shut on Wednesday, October 28, overlaying the primary quarter of its 2027 fiscal yr.

  • Analysts anticipate earnings per share (EPS) of $4.71, towards $4.13 a yr earlier, in accordance to ChartRow.
  • Revenue consensus is $90.63 billion, up from $77.67 billion a yr earlier, in accordance to MarketBeat.
  • The inventory rose 15.0% after its July report, when EPS of $4.74 beat the $4.21 estimate.

In September, Microsoft moved to a brand new two-segment structure and restated Azure as its personal income line. Under the restated figures, Azure grew 42% to $29.42 billion within the June quarter.

For this quarter, Microsoft guided for Azure progress of 44% to 45% in fixed forex. It additionally expects capital spending above $50 billion.

Goldman Sachs analyst Gabriela Borges (*3*) Microsoft now controls extra of the variables in its capex plans, giving it flexibility. She expects buyers to deal with Azure’s unit economics and return on invested capital.

The July leap broke a run of declines. Microsoft shares fell after every of the three studies earlier than it, although all three beat estimates. Shares closed at $524.51 on Friday, up 8.5% in 2026.

Microsoft (MSFT) Stock Performance. Source: Google Finance

Alphabet’s Big July Beat Still Sent Its Stock Lower

Alphabet studies later the identical night, with its name at 4:30 p.m. ET.

  • Analysts anticipate EPS of $2.94, towards $2.87 a yr earlier, in accordance to ChartRow.
  • Revenue consensus is $127.92 billion, up from $102.35 billion a yr earlier, in accordance to MarketBeat.
  • The inventory fell 7.1% after its July report, although EPS of $9.11 beat the $2.88 estimate.

That EPS determine was greater than thrice the estimate, but the inventory nonetheless fell. The present $2.94 estimate sits shut to final yr’s $2.87, so analysts don’t seem to anticipate a repeat. 

Second-quarter income rose 24.2% to $119.8 billion, with Google Cloud up 82% to $24.8 billion. Capital spending reached $44.9 billion in the identical quarter, pushing free money movement to detrimental $5.9 billion. In July, Alphabet additionally raised its 2026 capex steering to between $195 billion and $205 billion.

Goldman Sachs analyst Eric Sheridan mentioned investor worries have centered on Search income progress. Another concern is the dearth of a proper client AI agent launch thus far. 

He nonetheless sees Alphabet’s AI fashions, Google Cloud, and consumer apps as possible catalysts, and retains the inventory on Goldman’s purchase checklist.

Shares closed at $320.21 on Friday, up 2.3% in 2026, the smallest achieve of the three.

Alphabet (GOOGL) Stock Performance. Source: Google Finance

AWS Comes Off Its Fastest Quarter in Years

Amazon closes out the week on Thursday, October 29, reporting after the market closes.

  • Analysts anticipate EPS of $2.01, towards $1.95 a yr earlier, in accordance to ChartRow.
  • Revenue consensus is $202.16 billion, up from $180.17 billion a yr earlier, in accordance to MarketBeat.
  • The inventory rose 15.3% after its July report, when EPS of $1.88 beat the $1.83 estimate.

AWS gross sales rose 37% to $42.2 billion within the second quarter, the quickest progress since late 2021. One analyst cited by Benzinga put the AWS progress consensus for this quarter at 38%, whereas anticipating 43% to 45%.

That progress got here with a much bigger spending plan. In July, Amazon raised its 2026 capital spending forecast to about $220 billion, from $200 billion. Second-quarter capex reached $54.2 billion, up from $32.1 billion a yr earlier.

CEO Andy Jassy mentioned even that quantity wouldn’t give Amazon sufficient capability to meet all of this yr’s demand. The spending pushed free money movement over the trailing 12 months to detrimental $7.6 billion. Amazon additionally introduced a $25 billion bond sale in July, partly to fund AI capex.

Amazon guided third-quarter income of $197 billion to $202 billion. The income consensus sits simply above the highest of that vary. 

Amazon’s July GAAP EPS of $5.75 included $53.4 billion in pre-tax revenue, largely tied to its stake in Anthropic. Its headline revenue can swing on investment gains as a result.

The agency’s shares closed at $248.00 on Friday, up 7.4% in 2026.

Amazon (AMZN) Stock Performance. Source: Google Finance

AI spending at this scale reaches past the three corporations’ personal shareholders. Moody’s estimates the sector’s capex may attain $785 billion in 2026 and almost $1 trillion in 2027. Hyperscaler debt issuance is working at round $175 billion this yr, towards a five-year common of $30 billion.

All three shares path the S&P 500, which has gained greater than 11% this yr, in accordance to CNBC. In their newest quarters, the three cloud companies grew between 37% and 82%. This week’s studies will present whether or not that tempo held as spending stored climbing.

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The publish 3 Big Tech Earnings Reports to Watch as AI Bills Keep Growing appeared first on BeInCrypto.

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