Microsoft's finance chief Amy Hood told analysts the firm expects roughly $170 billion in capital spending this fiscal year while still generating positive free cash flow, as she lifted her Azure growth forecast to 49-50%.
Alphabet shares fell more than 9% in after-hours trading as a shortfall in search advertising and negative free cash flow of around $9 billion outweighed Google Cloud revenue more than doubling.
Microsoft and Alphabet report on Wednesday, October 28, with Amazon following on Thursday, October 29, in a week investors see as a key check on whether heavy AI investment is paying off for Big Tech.