Microsoft reported cloud revenue growth and higher profit on October 28, 2026, for its fiscal first quarter ended September 30. Unconfirmed quarterly figures for Alphabet indicated rising Google Cloud revenue and negative free cash flow. Subsequent reporting also described difficulties monetizing Google’s AI-generated search responses and a decline in Alphabet shares after its earnings call.
Microsoft’s earnings and reported spending outlook
Microsoft said its Microsoft Cloud revenue increased 30% year over year to $63.9 billion. Total revenue rose 19% to $92.3 billion, while net income increased 32% to $36.6 billion.
Diluted earnings were $4.92 per share, compared with adjusted earnings of $4.89 per share. Adjusted net income increased 18% to $36.4 billion.
Microsoft’s adjusted results exclude the effects of its investments in OpenAI. The company said those investments increased quarterly net income by $207 million, compared with a $3.1 billion reduction a year earlier.
Separate, unconfirmed figures put Azure revenue at $33.17 billion, up 48% year over year. Other reported figures, also not independently confirmed, put quarterly operating cash flow at $58 billion and free cash flow at $18.63 billion, down 27% from a year earlier.
Microsoft was also reported to have forecast capital expenditures of $170 billion for fiscal 2027, including more than $50 billion in its second fiscal quarter, and to have said it expected to remain cash flow positive during the fiscal year. Those forecasts and the annual spending period have not been independently confirmed.
Alphabet’s reported cloud and search results
Unconfirmed quarterly figures put Google Cloud revenue at $30.71 billion, up 103% year over year, and Alphabet’s free cash flow at negative $9.07 billion.
Additional unconfirmed figures put Alphabet’s total revenue at $127.58 billion, up 25%, and net income available to common shareholders at $26.17 billion, down from $34.98 billion a year earlier. The reported results included an $8.66 billion loss on equity securities and an approximately $6.7 billion after-tax reduction in net income.
Search advertising revenue for the third quarter of 2026 was reported at $63.4 billion, up 12% year over year. The result was reported to be roughly $1.6 billion below analyst expectations, which had called for approximately 15% growth. Neither the figures nor that expectations comparison have been independently confirmed.
Google Chief Business Officer Philipp Schindler was reported to have said during the Wednesday earnings call that AI-generated search responses made results harder to monetize. The reported comments concerned Google’s AI Mode; a primary transcript supporting the account has not been established.
Alphabet’s reported third-quarter capital spending figures differ: one puts spending at $51.3 billion, while another gives approximately $51.4 billion. Second-quarter spending was reported at $44.9 billion. These figures remain unconfirmed.
Further unconfirmed reporting described expected fourth-quarter capital spending of as much as $73 billion and future commitments exceeding $1 trillion for data centers, energy and other costs.
Subsequent reporting described a decline of as much as 13% in Alphabet shares during Thursday trading following the Wednesday earnings call, with a market-value loss exceeding $500 billion. Those reported market movements have not been independently confirmed.
Amazon’s separate quarterly results
Amazon reported that Amazon Web Services revenue increased 39% year over year to $46 billion for its third quarter ended September 30, 2026. AWS operating income rose to $17.8 billion from $11.4 billion, while companywide operating income increased to $28.1 billion from $17.4 billion.
Amazon reported operating cash flow of $168.3 billion for the 12 months ended September 30 and a free cash outflow of $42.4 billion. That compared with a $14.8 billion free cash inflow in the year-earlier period. These trailing-year figures are not directly comparable with the quarterly cash-flow figures reported for Microsoft and Alphabet.
Amazon attributed the decline in free cash flow primarily to a $94.8 billion year-over-year increase in purchases of property and equipment, net of sales proceeds and incentives. The company said that increase primarily reflected investments in artificial intelligence.
Chief Executive Andy Jassy projected AWS revenue growth above 40% in both 2027 and 2028. Those growth rates are management forecasts.
Oracle’s cash-flow and financing targets
At its October 28, 2026, investor day, Oracle said it expected to reach positive free cash flow during the second half of fiscal 2028 and generate at least $30 billion in free cash flow in fiscal 2029. It forecast lower capital expenditures in fiscal 2029 following peak spending in fiscal 2027 and 2028.
Oracle said it planned to limit additional capital-market funding for its fiscal 2027–2030 investment cycle to $20 billion, excluding refinancing of existing debt. It expected that funding to comprise $10 billion in equity and $10 billion in gross debt, in addition to a $20 billion at-the-market equity raise completed in its first fiscal quarter of 2027.
