Cloud gains and rising AI bets drive Big Tech Q1 earnings across key players
Big Tech companies' Q1 earnings show AI has become a capital-intensive race, with Alphabet's Google Cloud posting a 63% revenue surge and combined AI-related spending projected to exceed $700 billion in 2026. Microsoft and Amazon also reported significant growth in their cloud businesses, driven by demand for AI tools and infrastructure.
Big Tech companies' latest earnings reveal a significant shift towards AI, with Alphabet's Google Cloud reporting a 63% revenue surge, its strongest growth on record. Combined AI-related spending among major US tech companies is projected to exceed $700 billion in 2026. Alphabet has raised its capital expenditure forecast to between $180 billion and $190 billion, driven by demand for generative AI tools and Google's tensor processing units. Microsoft's Azure revenue grew 40%, while Amazon Web Services posted 28% revenue growth, but lagged Google Cloud in growth momentum. Microsoft and Amazon have also committed to heavy investment in AI infrastructure, with Microsoft outlining a $190 billion capital expenditure plan for 2026 and Amazon's annual capital spending remaining close to $200 billion. Meta raised its 2026 capital expenditure forecast to between $125 billion and $145 billion, but faced scrutiny over spending and regulatory risks.
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