Microsoft and Google earnings

Business · Heat 5.3 / 10 · 2 shows · 9m airtime

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.

How 2 podcasts covered it

1. Prof G Markets, 2026-10-29 (2:04 to 3:31)
   Previews the earnings split and Azure's 48%
   Reads the day's market vitals, then previews the Microsoft and Google earnings split: Microsoft beat with Azure cloud growth of 48%, Google missed on advertising and free cash flow, and the shares moved in opposite directions.
   New angle: Azure grew 48% year over year, disclosed in Microsoft's earnings statement for the first time.
2. Prof G Markets, 2026-10-29 (3:31 to 8:06)
   Walks through Microsoft's clean beat and raise
   Gil Luria walks through Microsoft's quarter: a clean beat and raise, Azure accelerating from 43% to 48% on a $120 billion business, and free cash flow down 27% but still positive. The argument is that short-term neocloud capacity and a profitable software business let Microsoft avoid the capital markets, unlike Meta and Google. A detailed retelling that stays inside the…
3. The AI Daily Brief, 2026-10-29 (6:36 to 9:51)
   Reads the capex undershoot as constraints
   Walks both earnings prints: Azure's first standalone breakout at $33 billion with $10 billion from OpenAI, Google Cloud doubling to $30.7 billion, and search growth sliding to 12%. Reads the capex undershoot as physical constraints rather than faltering demand.
   New angle: Quarterly capex came in under expectations at both companies despite steady full-year forecasts.