Alphabet's Google Cloud revenue rose 103% to $30.7 billion in the third quarter. Total revenue of $127.6 billion, up 25%, came in just under analyst estimates, and search and other advertising grew 12% to $63.3 billion. CFO Anat Ashkenazi said capital spending will rise significantly in 2027, with details to come on the next call. Shares fell more than 10% in after-hours trading.
Microsoft said Azure grew more than 48% and, for the first time, disclosed Azure revenue in dollars: $33.17 billion. Capital spending including finance leases was $45.2 billion, and about 75% of it went to short-lived assets such as GPUs and CPUs. CFO Amy Hood said demand still exceeds supply, and Microsoft guided Azure growth of 49% to 50% in constant currency for the next quarter.
Amazon's AWS revenue grew 39% to $46 billion, with $17.8 billion in operating income. Amazon still expects about $220 billion in 2026 capex, and Andy Jassy projected AWS growth above 40% in both 2027 and 2028. Trailing 12-month free cash flow was negative $42.4 billion.