Results from Amazon, Alphabet and Microsoft confirmed robust demand for AI-related services while revealing massive capital spending. Alphabet’s Google Cloud revenue more than doubled, but capital expenditures reached $51.4 billion and results missed expectations, sending shares down nearly 13% and erasing $500 billion in market value. Amazon also missed forecasts, with free cash flow swinging from positive $14.8 billion to negative $42.4 billion, while the company expects about $220 billion in capital expenditures for 2026. Microsoft, by contrast, beat expectations on Azure’s 48% revenue growth, but expects about $170 billion in capital spending for 2026. Apple’s results will be the next test of AI’s ability to generate revenue beyond its immense infrastructure bill.
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