Microsoft, Amazon, Alphabet Post 43%-82% Cloud Growth as AI Capex Swells
Updated
Updated · 24/7 Wall St. · Aug 13
Microsoft, Amazon, Alphabet Post 43%-82% Cloud Growth as AI Capex Swells
3 articles · Updated · 24/7 Wall St. · Aug 13
Summary
Azure rose 43%, AWS 36.7% and Google Cloud 82% in the latest earnings cycle, showing AI infrastructure spending is translating into faster cloud revenue growth across the three US hyperscalers.
Backlogs also surged, pointing to demand that could extend into 2027: Microsoft’s commercial RPO reached $678 billion and Amazon’s AWS backlog hit $496 billion, while all three companies reported record or sharply higher capital spending.
Microsoft said Azure topped $100 billion in full-year revenue and guided about 45% constant-currency growth for Q1 FY27, while Amazon projected Q3 net sales of $197 billion to $202 billion and operating income of $22.5 billion to $26.5 billion.
Alphabet paired the fastest cloud growth with the lowest valuation multiple, but all three face the same risk: capex is pressuring cash flow, with Microsoft, Amazon and Alphabet each reporting negative or weakened free cash flow.