Microsoft, and Alphabet report after today’s close, with investors looking for solid revenue growth and evidence that spending on artificial intelligence is translating into stronger business performance.
Microsoft (MSFT) is expected to report earnings of $4.72 per share, up 14.3% from $4.13 a year ago
Revenue is forecast at $90.62 billion, up 16.7% from $77.67 billion. Azure growth, capital spending and the outlook for margins will be key areas of focus. Alphabet (GOOGL/GOOG) is expected to earn $3.03 per share, up 5.6% from $2.87 last year.
Revenue is projected at $127.91 billion, up 25.0% from $102.35 billion. Investors will watch Google Cloud growth, the performance of the advertising business and how rising AI investment affects free cash flow. The headline numbers will provide the first test.