#MicrosoftGoogleEarnings

WHEN REPORTS LAND AND CORE GUIDE 📊
Both firms report today, October twenty eight, after close. Microsoft covers July to September as fiscal twenty twenty seven first quarter. Alphabet covers same three months as third quarter. Webcast for Microsoft begins at two thirty p.m. Pacific, five thirty p.m. Eastern. Alphabet call follows after release. Amazon follows tomorrow, Apple early November.

Fed decision also lands today at two p.m. Eastern, with press conference at two thirty p.m. Eastern, so market will trade both macro and earnings at same time.
MICROSOFT FISCAL Q1 BREAKDOWN 💻
Microsoft guide points to revenue between eighty nine point eight five and ninety point nine five billion. Consensus EPS sits near four point seven one dollars. Last quarter to June thirty, cloud revenue hit fifty nine point three billion, up twenty seven percent, with Azure up forty three percent.

For this quarter, Intelligent Cloud is seen near forty point nine five to forty one point two five billion, with Azure growth near forty five percent in fixed FX view. Productivity and Business Processes near thirty three point seven five to thirty four point zero five billion, led by Microsoft three sixty five commercial, Copilot and LinkedIn. More Personal Computing near thirteen point two five to thirteen point six five billion, with Windows and gaming.

Key watch: Azure consumption split between core and AI workload, Copilot seat growth and ARPU, margin trend as data center, chip and power costs rise.
ALPHABET Q3 BREAKDOWN 🔍
Alphabet consensus EPS sits near two point nine four to three point zero three dollars. Revenue grew twenty four percent last quarter.

Google Services includes Search, video ads unit, Network and Subs. Search ad growth stayed firm last quarter despite AI overview shift. Video ads and subs mix remains key driver.

Google Cloud hit twenty four point eight billion last quarter, up eighty two percent year over year, with strong AI infra and enterprise move to cloud. Market now looks for Cloud to hold above twenty five billion with better operating profit.

Other Bets, headcount, buyback pace and cost control will also be in focus.
CLOUD RACE AND AI SPEND 💰
Microsoft Cloud runs near sixty billion per quarter, largest by dollars. Azure growth near forty five percent tops overall market. Google Cloud】 grows faster off lower base, with eighty two percent last quarter. AWS holds largest share but growth has been slower than both.

AI workload now drives large share of new cloud spend. Backlog and remaining performance obligation show booked demand that still needs to be delivered.

Combined capex for twenty twenty six across Microsoft, Alphabet, Amazon and Meta is seen near seven hundred twenty five billion, per recent sector tallies. High spend lifts long run capacity but trims free cash flow near term. Market will ask about ROI, usage rate and pricing power for AI cloud.
MARKET SETUP AND WHAT TO WATCH 🚀
Ahead of print, Alphabet rose point eight percent to three hundred sixteen point eight three dollars. Microsoft slipped point two percent to five hundred thirty one point four four dollars. Amazon rose one point six percent to two hundred fifty three point one dollars.

Options imply larger than usual move after print, as Fed plus earnings land together.

Bullish case: Azure above forty five percent, Cloud above twenty five billion with margin gain, Search ad stable, video ad acceleration, disciplined cost and clear AI monet path.

Bearish case: Azure below guide, Cloud growth cools, Search ad soft on macro or AI shift, margin dip on higher depreciation and chip limits, cautious guide for next quarter.

In sum, today will show if AI led cloud growth can offset heavy spend and macro crosswind. Both firms hold scale, cash and backlog, but market wants proof that revenue growth stays above cost growth into year end.
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