Odaily Planet Daily report: Amazon, Microsoft, and Google Cloud all exceeded market expectations for Q2 cloud revenue. Amazon disclosed that AWS revenue increased 37% year-over-year to $42.23 billion in Q2, marking the highest growth rate since 2021. Amazon’s total revenue surpassed $200.6 billion for the first time, with an operating profit of $16.6 billion.
Microsoft's revenue for the fourth quarter of fiscal year 2026 increased 18% year-over-year to $90.007 billion, with Azure revenue growth accelerating from 40% in the prior quarter to 43%, and annual revenue surpassing $100 billion for the first time. Alphabet, Google's parent company, reported that Google Cloud revenue grew 82% year-over-year to $24.8 billion in the second quarter, with contract backlog increasing to $514 billion.
Amazon has raised its capital expenditure forecast for this year from approximately $200 billion to $220 billion, primarily for data centers, servers, networking equipment, and AI semiconductors. Alphabet has increased its capital expenditure forecast for this year to as much as $205 billion, while Microsoft's quarterly capital expenditure reached $41 billion, a 69% year-over-year increase.
Alphabet CEO Sundar Pichai stated that demand for AI infrastructure and AI solutions is driving cloud business growth, with 90% of Fortune 100 companies using Gemini Enterprise. Amazon CEO Andy Jassy said that even with an investment of $220 billion, this year’s resources are still insufficient to meet all customer AI demands, and this situation is expected to continue next year.