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 reports.

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

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

Microsoft’s Azure Faces a 45% Growth Bar

Microsoft reports after the close on Wednesday, October 28, covering the first quarter of its 2027 fiscal year.

• Analysts expect earnings per share (EPS) of $4.71, against $4.13 a year earlier, according to ChartRow.
• Revenue consensus is $90.63 billion, up from $77.67 billion a year earlier, according to MarketBeat.
• The stock rose 15.0% after its July report, when EPS of $4.74 beat the $4.21 estimate.

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

For this quarter, Microsoft guided for Azure growth of 44% to 45% in constant currency. It also expects capital spending above $50 billion.

Goldman Sachs analyst Gabriela Borges said Microsoft now controls more of the variables in its capex plans, giving it flexibility. She expects investors to focus on Azure’s unit economics and return on invested capital.

The July jump broke a run of declines. Microsoft shares fell after each of the three reports before it, even though all three beat estimates. Shares closed at $524.51 on Friday, up 8.5% in 2026.

Alphabet’s Big July Beat Still Sent Its Stock Lower

Alphabet reports later the same evening, with its call at 4:30 p.m. ET.

• Analysts expect EPS of $2.94, against $2.87 a year earlier, according to ChartRow.
• Revenue consensus is $127.92 billion, up from $102.35 billion a year earlier, according to MarketBeat.
• The stock fell 7.1% after its July report, even though EPS of $9.11 beat the $2.88 estimate.

That EPS figure was more than three times the estimate, yet the stock still fell. The current $2.94 estimate sits close to last year’s $2.87, so analysts do not appear to expect a repeat. 

Second-quarter revenue rose 24.2% to $119.8 billion, with Google Cloud up 82% to $24.8 billion. Capital spending reached $44.9 billion in the same quarter, pushing free cash flow to negative $5.9 billion. In July, Alphabet also raised its 2026 capex guidance to between $195 billion and $205 billion.

Goldman Sachs analyst Eric Sheridan said investor worries have centered on Search revenue growth. Another concern is the lack of a formal consumer AI agent launch so far. 

He still sees Alphabet’s AI models, Google Cloud, and consumer apps as possible catalysts, and keeps the stock on Goldman’s buy list.

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

AWS Comes Off Its Fastest Quarter in Years

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

• Analysts expect EPS of $2.01, against $1.95 a year earlier, according to ChartRow.
• Revenue consensus is $202.16 billion, up from $180.17 billion a year earlier, according to MarketBeat.
• The stock rose 15.3% after its July report, when EPS of $1.88 beat the $1.83 estimate.

AWS sales rose 37% to $42.2 billion in the second quarter, the fastest growth since late 2021. One analyst cited by Benzinga put the AWS growth consensus for this quarter at 38%, while expecting 43% to 45%.

That growth came with a 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 year earlier.

CEO Andy Jassy said even that amount would not give Amazon enough capacity to meet all of this year’s demand. The spending pushed free cash flow over the trailing 12 months to negative $7.6 billion. Amazon also announced a $25 billion bond sale in July, partly to fund AI capex.

Amazon guided third-quarter revenue of $197 billion to $202 billion. The revenue consensus sits just above the top of that range. 

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

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

AI spending at this scale reaches beyond the three companies’ own shareholders. Moody’s estimates the sector’s capex could reach $785 billion in 2026 and nearly $1 trillion in 2027. Hyperscaler debt issuance is running at around $175 billion this year, against a five-year average of $30 billion.

All three stocks trail the S&P 500, which has gained more than 11% this year, according to CNBC. In their latest quarters, the three cloud businesses grew between 37% and 82%. This week’s reports will show whether that pace held as spending kept climbing.

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