Microsoft, Alphabet and Amazon to Present Reports on Billion-Dollar AI Investments

This week, quarterly reports from the three largest IT companies are being released. Microsoft and Alphabet will publish their results on Wednesday, October 28, after market close; Amazon will report on Thursday, October 29. In previous quarters, Google Cloud grew by 82%, Azure by 42%, and AWS by 37%. All three companies have actively invested in artificial intelligence infrastructure, and the reports will show whether they can maintain the pace. The Fed's rate decision is expected at 2:00 PM Eastern Time, a few hours before the reports from Microsoft and Alphabet.

Microsoft: Azure growth target – 44–45%

Microsoft will present its report for the first quarter of the 2027 fiscal year. Analysts forecast earnings per share of $4.71 compared to $4.13 a year earlier, and revenue of $90.63 billion compared to $77.67 billion. In September, the company highlighted Azure as a separate revenue line; on recalculated data for the June quarter, Azure grew by 42% to $29.42 billion. In the current quarter, Microsoft expects Azure to grow by 44–45% and capital expenditures to exceed $50 billion. On Friday, shares closed at $524.51: up 8.5% since the beginning of the year.

Alphabet: investors concerned about search slowdown

Alphabet will report the same evening, with a conference call at 4:30 PM Eastern Time. The earnings per share forecast is $2.94 compared to $2.87, and revenue is $127.92 billion compared to $102.35 billion. In July, the stock fell by 7.1%, even though earnings per share of $9.11 were three times higher than expected. In the second quarter, Google Cloud increased by 82% to $24.8 billion, capital expenditures amounted to $44.9 billion, and free cash flow went negative by $5.9 billion; the investment forecast for 2026 has been raised to $195–205 billion. Goldman Sachs analyst Eric Sheridan noted that investors are concerned about the slowdown in search revenue and the lack of a full release of an AI agent. The stock closed at $320.21: up 2.3% since the beginning of the year – the weakest growth among the trio.

Amazon: AWS completes the fastest quarter in years

Amazon will report on Thursday: the earnings per share forecast is $2.01 compared to $1.95, and revenue is $202.16 billion compared to $180.17 billion. Shares rose by 15.3% after the July report. AWS sales in the second quarter grew by 37% to $42.2 billion – the highest since the end of 2021; analysts expect around 38% with a possible acceleration to 43–45%. Capital expenditures for 2026 have been raised to $220 billion, and for the second quarter – $54.2 billion. Free cash flow over 12 months is negative $7.6 billion. The revenue forecast for the third quarter is $197–202 billion. Shares closed at $248.00: up 7.4% since the beginning of the year.

According to Moody’s, sector capital investments will reach $785 billion in 2026 and nearly $1 trillion in 2027. All three stocks lag behind the S&P 500, which has grown by more than 11% since the beginning of the year.