AI-Linked Cloud Spending Boosts Tech Giants' Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2026
0mins
Should l Buy MSFT?
Source: Yahoo Finance
- Microsoft's Strong Performance: Microsoft reported adjusted earnings of $4.27 per share for its fiscal third quarter, with revenue hitting $82.89 billion, while Azure revenue surged 40%, indicating robust competitiveness in the cloud sector and sustained growth expectations.
- Google Cloud Revenue Surge: Alphabet's cloud revenue soared 63% to $20 billion, with backlog nearly doubling to $462 billion, reflecting strong demand for AI-driven products and further solidifying its market position.
- Amazon AWS Significant Growth: Amazon's AWS revenue rose 28% to $37.6 billion, marking its fastest growth rate since 2022, showcasing the company's appeal in the AI sector, although heavy investments may impact free cash flow.
- Increased Capital Expenditure Plans: Both Microsoft and Google have raised their capital expenditure plans for 2026, with Microsoft estimating around $190 billion and Google between $180 billion and $190 billion, demonstrating confidence in future growth prospects.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 409.430
Low
500.00
Averages
631.36
High
678.00
Current: 409.430
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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