by Coinstrooper Crypto Articles
Quick Take
  • 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.
  • Microsoft reports after the close on Wednesday, October 28, covering the first quarter of its 2027 fiscal year.

What Happened

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.

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.

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.

Market Context

Revenue consensus is $90.63 billion, up from $77.67 billion a year earlier, according to MarketBeat.

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

Revenue consensus is $127.92 billion, up from $102.35 billion a year earlier, according to MarketBeat.

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.

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

Why It Matters

Analysts expect earnings per share (EPS) of $4.71, against $4.13 a year earlier, according to ChartRow.

Analysts expect EPS of $2.94, against $2.87 a year earlier, according to ChartRow.

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.

Details

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’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.

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.

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.

The stock fell 7.1% after its July report, even though EPS of $9.11 beat the $2.88 estimate.

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