By Johnny Rice
Publication Date: 2026-10-28 23:59:00
Two tech behemoths — Alphabet (GOOG +1.60%) (GOOGL +1.34%) and Microsoft (MSFT -0.06%) — reported earnings today. Both showed strong cloud growth, but the market is treating them very differently. Microsoft shares popped after hours while Alphabet stock sank. Why?
I think a big part of the answer is how each plans to pay for the massive outlays both have planned.
Cloud growth accelerated at both companies
Microsoft beat Wall Street’s targets with sales up 19%, reaching $92.3 billion. GAAP — generally accepted accounting principles — earnings per share (EPS) came in at $4.92. Adjusted EPS was $4.89, above the roughly $4.72 the Street expected. Azure, its cloud platform, grew 48%, reaching $33.17 billion in revenue.
Alphabet’s cloud growth was even stronger than Microsoft’s: 103% growth for the unit, earning $11.1 billion in operating income on $30.7 billion in sales. Overall, sales jumped 25%, reaching $127.6 billion, slightly missing estimates, while GAAP EPS actually fell from…
