Microsoft, Alphabet and Amazon all report quarterly results this week, starting with Microsoft and Alphabet on Wednesday and Amazon on Thursday. The three reports will land hours after the Federal Reserve announces its rate decision at 2 p.m. ET, and they arrive with a single question hanging over all of them: whether the billions being poured into AI infrastructure are starting to pay off.
The stakes are high because investors have already shown they'll punish these stocks even when the numbers beat expectations. All three trailed the S&P 500 this year, which is up more than 11%.
Microsoft's Azure math takes center stage
Microsoft reports after the close on Wednesday, covering the first quarter of its 2027 fiscal year. Analysts expect EPS of $4.71 versus $4.13 a year earlier and revenue of $90.63 billion versus $77.67 billion. The stock rose 15.0% after its July report, when EPS of $4.74 beat the $4.21 estimate.
Since then, Microsoft has moved to a two-segment structure and restated Azure as its own revenue line. Under those figures, Azure grew 42% to $29.42 billion in the June quarter. The company guided for Azure growth of 44% to 45% in constant currency and expects capital spending above $50 billion.
Goldman Sachs analyst Gabriela Borges said Microsoft now controls more of the variables in its capex plans, giving it flexibility. She expects investors to focus on Azure's unit economics and return on invested capital. The stock fell after each of its three reports before July despite all three beating estimates. Shares closed at $524.51 on Friday, up 8.5% in 2026.
Alphabet's cloud surge meets a skeptical market
Alphabet reports the same evening, with its call at 4:30 p.m. ET. Analysts expect EPS of $2.94 versus $2.87 a year earlier and revenue of $127.92 billion versus $102.35 billion. The stock fell 7.1% after its July report even though EPS of $9.11 beat the $2.88 estimate by more than three times.
Alphabet's second-quarter revenue rose 24.2% to $119.8 billion, with Google Cloud up 82% to $24.8 billion. Capital spending reached $44.9 billion, pushing free cash flow to negative $5.9 billion. In July, the company raised its 2026 capex guidance to between $195 billion and $205 billion.
Goldman Sachs analyst Eric Sheridan said investor worries have centered on Search revenue growth and the lack of a formal consumer AI agent launch. He still sees Alphabet's AI models, Google Cloud and consumer apps as possible catalysts and keeps the stock on Goldman's buy list. Shares closed at $320.21 on Friday, up 2.3% in 2026, the smallest gain of the three.
Amazon's AWS growth and the Anthropic wildcard
Amazon reports after the market closes on Thursday. Analysts expect EPS of $2.01 versus $1.95 a year earlier and revenue of $202.16 billion versus $180.17 billion. The stock rose 15.3% after its July report, when EPS of $1.88 beat the $1.83 estimate.
AWS sales rose 37% to $42.2 billion in the second quarter, the fastest growth since late 2021. One analyst cited by Benzinga put the AWS growth consensus for this quarter at 38%, while expecting 43% to 45%.
Amazon raised its 2026 capital spending forecast in July to about $220 billion from $200 billion. Second-quarter capex reached $54.2 billion, up from $32.1 billion a year earlier. CEO Andy Jassy said even that amount wouldn't give Amazon enough capacity to meet all of this year's demand. The spending pushed free cash flow over the trailing 12 months to negative $7.6 billion, and the company announced a $25 billion bond sale in July, partly to fund AI capex.
Amazon guided third-quarter revenue of $197 billion to $202 billion; the revenue consensus sits just above the top of that range. Its July GAAP EPS of $5.75 included $53.4 billion in pre-tax income, mostly tied to its stake in Anthropic, so headline profit can swing on investment gains. Shares closed at $248.00 on Friday, up 7.4% in 2026.
The debt bill behind the AI buildout
The spending is showing up in credit markets. Moody's estimates the sector's capex could reach $785 billion in 2026 and nearly $1 trillion in 2027. Hyperscaler debt issuance is running at around $175 billion this year, against a five-year average of $30 billion.
For now, the focus is on the numbers due Wednesday and Thursday. Microsoft's Azure unit economics, Alphabet's Search growth and Amazon's AWS acceleration will each get a hearing. Whether any of it changes the market's mood is the open question.
