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Alphabet Leads Big Tech Earnings as AI Demand Supercharges Cloud

Investors are rewarding clear AI revenue gains over raw spending.

Overview

  • Alphabet, which reported results Wednesday, beat forecasts with $109.9 billion in revenue and $5.11 EPS as it raised 2026 capital spending to $180–$190 billion and signaled even higher outlays in 2027.
  • Google Cloud revenue jumped 63% to $20 billion, with Sundar Pichai saying enterprise AI is now the unit’s primary growth driver and with Google starting to sell its in-house TPU AI chips to customers.
  • Microsoft reported $82.9 billion in revenue as Azure grew about 40% and said its AI business has reached a $37 billion annual run rate after OpenAI ended its exclusive commitment to Azure.
  • AWS sales rose 28% to $37.6 billion as Amazon reaffirmed roughly $200 billion in 2026 capital spending and expanded model access through new deals with OpenAI and Anthropic.
  • Intel posted an upside tied to data‑center CPUs, with AI product revenue up 22% to $5.1 billion and adjusted EPS of $0.29, showing knock‑on demand for computing power beyond GPUs.