Azure grew 43% and AWS 37% last quarter, and investors want proof that heavy AI spending is turning into revenue. Microsoft 365 Copilot passed 30 million paid seats, while Amazon's AI and chips businesses each passed $25 billion in annualized run rates. Microsoft's commercial remaining performance obligations rose 84% (25% without OpenAI), while its free cash flow fell 23.2% to $19.64 billion. Amazon's trailing 12-month free cash flow was negative $7.6 billion after $54.21 billion of capital spending in one quarter, and its $5.75 EPS included a $53.4 billion one-time gain tied mainly to its Anthropic stake. Microsoft's operating margin is 46.8% versus Amazon's 11.2%, and Amazon is expected to report on October 29.
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MSFTAMZNcloud computingearningsartificial intelligence
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Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/16/2026 | 249.94 |
| Change that session | -1.89% |
MSFT
• NeutralMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/16/2026 | 528.95 |
| Change that session | -1.94% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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