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

The reports arrive as cloud divisions show strong growth: Google Cloud grew 82%, Azure 42%, and Amazon Web Services (AWS) 37% in their latest quarters. All three companies have spent heavily on AI infrastructure, with Microsoft and Alphabet reporting Wednesday after the Federal Reserve's 2 p.m. Eastern Time rate decision, and Amazon following on Thursday.

Microsoft's Azure Growth Challenge

Microsoft reports Wednesday covering its first quarter of fiscal 2027. Analysts expect EPS of $4.71, up from $4.13 a year earlier, and revenue of $90.63 billion, up from $77.67 billion. The stock rose 15% after its July report when EPS beat estimates.

Microsoft recently restructured to separate Azure as its own revenue line, which grew 42% to $29.42 billion in the June quarter. The company guided for 44-45% Azure growth in constant currency and expects capital spending above $50 billion.

Alphabet's Search and AI Concerns

Alphabet reports Wednesday evening with expected EPS of $2.94, up from $2.87 a year earlier, and revenue of $127.92 billion, up from $102.35 billion. Despite beating estimates by more than three times in July, the stock fell 7.1%.

Google Cloud grew 82% to $24.8 billion in the second quarter, while capital spending reached $44.9 billion, pushing free cash flow to negative $5.9 billion. Alphabet raised its 2026 capex guidance to $195-205 billion.

AWS's Fast Growth and Spending

Amazon reports Thursday with expected EPS of $2.01, up from $1.95, and revenue of $202.16 billion, up from $180.17 billion. The stock rose 15.3% after its July report when EPS beat estimates.

AWS sales rose 37% to $42.2 billion in the second quarter, the fastest growth since late 2021. Amazon raised its 2026 capital spending forecast to about $220 billion from $200 billion, with second-quarter capex reaching $54.2 billion, up from $32.1 billion a year earlier.