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Microsoft Stock Slips 0.2% Before Earnings as Alphabet Gains
What to expect from Microsoft and Alphabet earnings today?
Microsoft (MSFT) stock slipped 0.2% to $531.33 on Tuesday while Alphabet (GOOGL) rose about 1% to roughly $321, as investors await earnings after Wednesday's close and AI spending plans.
Key numbers
| Microsoft expected revenue | $90.6B+16.7% YoY |
|---|---|
| Alphabet expected revenue | $127.9B+25% YoY |
| Azure growth expected | 44–45%vs 43% last quarter |
| Google Cloud growth, June quarter | 82%revenue $24.8B |
| Microsoft quarterly capex guide | >$50Bguided above $50B |
| Alphabet 2026 capex guide | $195–205B[2] cites $180–190B |
What happened
Microsoft (MSFT) stock slipped 0.2% to $531.33 on Tuesday while Alphabet (GOOGL) rose about 1% to roughly $321, as investors await earnings after Wednesday's close and AI spending plans. Analysts expect sales growth of about 17% for Microsoft and 25% for Alphabet compared with a year ago. Investors mainly want to know whether huge spending on AI data centers will turn into real profit. Microsoft has guided to spending above $50 billion this quarter, while Alphabet's 2026 plan is $195 billion to $205 billion.
Why it matters
Microsoft and Alphabet together make up about 11.5% of the S&P 500 (an index of 500 large US companies), so their results can move the wider market and many retirement funds. Alphabet shares fell about 4% after hours in July when it raised its spending plan, and analysts say both stocks could drop if spending grows faster than sales. Tonight's reports show whether AI demand is paying for the spending.
Who this affects
- MarketmixedHigh impact
- Mixed risk: two stocks make up 11.5% of S&P 500.
- CompanyneutralMedium impact
- Microsoft holders face a higher bar after July's strong rally.
- CompetitorsmixedMedium impact
- Amazon reports Thursday; Meta fell after raising spending last week.
- IndustrymixedHigh impact
- Cloud and chip suppliers gain if AI spending keeps rising.
Microsoft vs Alphabet, Amazon, Meta
How we got here
Alphabet raised 2026 capex guidance to $195–205B as Google Cloud grew 82%.
Microsoft reported $90.0B revenue for the June quarter, with Azure up 43%.
Meta shares fell about 7% as AI spending outpaced cash flow.
Microsoft and Alphabet report after the close; Alphabet's call is 4:30 p.m. ET.
What to watch
- Azure growth versus the 44–45% guided range, and Microsoft spending above $50B.2026-10-28
- Google Cloud growth after 82% last quarter, and any change to Alphabet's $195–205B spending plan.2026-10-28
- Amazon results, with AWS growth and roughly $220B planned 2026 spending in focus.2026-10-29
Educational content only. Not investment advice.
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