Microsoft and Alphabet reported third-quarter 2026 earnings on October 28. Microsoft beat expectations with revenue up 19% and disclosed Azure revenue for the first time, showing cloud growth of 48%; shares rose as much as 5% after hours. Google posted 24-25% revenue growth but advertising fell short and free cash flow declined; shares dropped as much as 11%. Quarterly capex came in under expectations at both companies despite steady full-year forecasts. The discussion turns on why investors read the two AI spenders so differently, with Azure's disclosed growth the clearest evidence yet of the gap.