Google Cloud grew 82% at 35.6% margin as Alphabet lifted 2026 capex to $195–205B
MSFT, GOOGL and AMZN all reported in late July, so each story is a dated report from the 90-day allowance, not the last 30 days. Against your 18% Q2 cloud growth, all three cloud lines grew faster (Azure 43%, AWS 37%, Google Cloud 82%); your margin basis is unstated, so margins are not compared.
The 30-second version
Alphabet raised 2026 capex to $195–205B and posted its first negative free cash flow, even as Google Cloud grew 82%.
Amazon lifted 2026 capex to about $220B from $200B; AWS grew 37% at roughly 39% operating margin.
Microsoft held capex plans, Azure grew 43% and guided 45%; Intelligent Cloud margin was flat at about 40.6%.
Q2 2026 (quarter ended Jun 30): revenue $119.8B, up 24%; Google Cloud revenue $24.8B, up 82% (from $13.6B), with segment operating income $8.8B vs $2.8B a year ago. My calculation from the release: Google Cloud operating margin about 35.6% vs about 20.7% in Q2 2025. Consolidated operating income was $40.8B (34% margin). GAAP diluted EPS was $9.11, inflated by $98.0B of other income, largely gains on securities; Reuters cited adjusted EPS of $2.85 vs $2.89 expected (LSEG), and Cloud growth vs a 64% LSEG expectation. Purchases of property and equipment were $44.9B vs $22.4B a year earlier.
Capex guidance: Reuters reports 2026 capex of $195–205B, up from $180–190B given last quarter. CFO Anat Ashkenazi said: "We have increased our capacity quite significantly over the past three years. The demand still outpaces that investment." She reaffirmed another significant capex increase in 2027. Reuters reported negative free cash flow of $5.9B, a first for the company. Alphabet also said it will rent more third-party data-center capacity, which Reuters says will hurt margins. A secondary blog puts Cloud backlog at $514B (not verified in the release). Call themes per Reuters: Gemini model delays, capex and cash burn. No transcript was opened. Stock: shares were down about 3% in extended trading Jul 22 and about 6% in early trading Jul 23 (Reuters, intraday); a closing move was not verified.
Against your benchmark: Google Cloud's 82% growth is over four times your 18%, but check how much of its margin gain survives rented capacity and higher depreciation.
Amazon raises 2026 capex to $220B as AWS growth hits 37%
Q2 2026 (quarter ended Jun 30): net sales $200.6B, up 20% (20% ex-FX), vs LSEG consensus of $196.47B per CNBC Investing Club. AWS sales $42.2B, up 37% (StreetAccount expected $40.54B), with AWS operating income $16.6B vs $10.2B; my calculation gives about 39% margin vs about 33% a year ago (Q2 2025). Operating income was $27.5B, up 43%, versus a $23.57B consensus; Amazon cited roughly $1.2B of benefit from lower expenses (tariff refunds, energy contracts). GAAP EPS was $5.75 vs $1.68, including $53.4B of pre-tax non-operating gains mostly from Anthropic, so the $1.82 LSEG consensus is not comparable (CNBC Investing Club).
Capex: CNBC reports Jassy now expects about $220B in 2026, up from $200B in February and April; he attributed the rise to memory prices. Q2 purchases of property and equipment were $54.2B vs $32.2B. Jassy: "But even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027 too." AWS backlog was $496B. Q3 guidance: sales $197–202B (LSEG expected $204.1B), operating income $22.5–26.5B vs $17.4B a year ago. Trailing-twelve-month free cash flow was an outflow of $7.6B. Stock: CNBC Africa reported +12% premarket on Jul 31, after about +4% at Jul 30 close; the Jul 31 close was not verified in a fetched source. Analyst Q&A themes were not verified.
Against your benchmark: AWS at 37% is about double your 18%; the open question is whether $220B of capex holds the roughly 39% margin.
Microsoft: Azure accelerates to 43%, fiscal 2026 capex plan held
Q4 FY2026 (quarter ended Jun 30): revenue $90.0B, up 18% (17% constant currency), vs $87.62B LSEG consensus (CNBC). GAAP diluted EPS $4.81; non-GAAP $4.74, vs $4.24 expected. Microsoft said discrete items, including a $3.2B Anthropic gain, added $0.27 to EPS. Intelligent Cloud revenue was $39.3B, up 32%, vs a $38.16B StreetAccount consensus; Azure grew 43% vs 40% prior quarter. Segment operating income was $15.96B vs $12.14B; my calculation gives about 40.6% margin in both periods, i.e. flat. Microsoft Cloud revenue was $59.3B, up 27%.
Capex: CNBC reports capital expenditures and finance leases of $41B, up 69%; Hood reiterated the fiscal 2026 plan and said the roughly $175B figure reflects longer asset lives and more operating leases, with further growth in fiscal 2027. Free cash flow was $19.64B, down 23%. Guidance: Azure growth of 45% constant currency in Q1 FY2027 vs 41.4% StreetAccount; Q1 revenue $89.85–90.95B vs $89.66B LSEG. Hood: "we delivered a strong quarter to close out the fiscal year, highlighted by Microsoft Cloud revenue of $59.3 billion, up 27% year-over-year." Stock: up 8% in extended trading on Jul 29; CNBC Africa says Microsoft rallied 15% on Jul 30. Call Q&A themes were not verified.
Against your benchmark: Azure at 43% is more than double your 18%; Microsoft's margin held flat while capex rose 69%, so check next quarter's depreciation.