Microsoft and Google attributed cloud growth to strong demand for AI services, executives said on Wednesday's earnings calls. Alphabet's core search revenue grew just 12% from last year, weaker than expected, as AI reshapes the company. Microsoft reported 19% revenue growth in its Q1 2027 call, driven by Azure as it builds out data center infrastructure. Microsoft's capital expenditures were $45.2 billion, up about 30% from last year, while Alphabet's were $51.4 billion in the third quarter versus $24 billion a year ago, mostly for technical infrastructure supporting AI. Forrester analysts said both companies must prove AI is a meaningful commercial growth engine, not just an infrastructure investment cycle.
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MSFTGOOGLartificial intelligencecloud computingearnings
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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/29/2026 | 283.75 |
| Change that session | -12.66% |
MSFT
▲ Likely positiveMicrosoft
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/29/2026 | 530.43 |
| Change that session | -0.11% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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