By Alex Sirois
Publication Date: 2026-08-17 16:07:00
Quick Read
Azure crossed $100B in annual revenue with 43% growth, while Google Cloud surged 82%, leaving every other hyperscaler well behind.
Microsoft generated $20B in free cash flow despite $36B in capex, while Alphabet went FCF-negative and suspended buybacks to fund AI buildout.
Microsoft’s $678B contracted backlog makes it the steadier compounder, while Alphabet carries 27% modeled upside for investors willing to absorb more risk.
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Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) both closed their latest quarters with cloud growth that dwarfed the rest of the hyperscaler field. Microsoft posted $90.01 billion in fiscal Q4 revenue, while Alphabet delivered $119.80 billion in its Q2. Both are pouring cash into AI infrastructure at a scale…
