The quarterly results published yesterday evening by Google, Meta, Microsoft and Amazon They confirm a phase of strong growth for the global technology sector, driven by artificial intelligence and cloud computing. However, another factor is also clearly emerging: the meteoric rise in investments, which is starting to weigh on market valuations.
Google: Financials beat expectations and margins improved
Google opens the season with results that exceed expectations, showing sustained growth in both revenue and profitability. Operating margin rises to 36,1%, an improvement compared to the previous year, a sign of more efficient cost management even in a phase of heavy investments in AI. In addition to the improvement in margins, the company recorded total revenues of approximately 110 billion dollars (+22% on an annual basis) and a earnings per share of $5,11, well above market expectations.
Driving the results are once again Advertising and Google Cloud, with this last segment being the real protagonist thanks to the demand for infrastructures for Artificial Intelligence, with $20 billion in revenue (+63%) and margins in further expansion, while advertising revenue remains dominant with approximately 76 billion dollars, equal to over 70% of the total.
Positive signals also come from the users' side: searches have reached a historical maximum and subscriptions (YouTube, Google One) have exceeded 350 million, supported by the integration of AI into consumer services. The market rewards the company, which appears to be among the most balanced in terms of growth and financial discipline.
Meta: Record profits but AI spending scares investors, stock price drops
A very solid quarter also for Meta, which records revenues of 56,3 billion dollars (+33%) and a net profit of 26,8 billiona EPS of $10,44Advertising continues to be the heart of the business, accounting for over 98% of revenue.
Despite the record numbers, the stock shows weakness, losing 7% due to the significant increase in investments: the company expects capital expenditure up to 145 billions of dollars in the 2026, primarily for AI infrastructure. This ambitious strategy strengthens long-term prospects, but in the short term raises questions about the sustainability of margins.
Microsoft: Azure Accelerates, AI Drives Growth
Microsoft confirms the centrality of the cloud in its strategy, with Azure continuing to grow beyond market expectations. Microsoft reported revenues of $82,9 billion (+18% year-on-year) and a earnings per share of $4,27, both above market expectations.
The heart of growth remains the cloud: the segment Microsoft Cloud generated $54,5 billion (+29%), while Azure grew between 39% and 40%, confirming a very strong demand linked to artificial intelligence. A particularly relevant fact concerns AI: the related business has reached a annual run rate above $37 billion (+123%), a sign of a significant acceleration in the monetization of new services.
Amazon: AWS remains the cornerstone of profitability
Amazon has registered a operating profit of $23,9 billion, up sharply from the previous year's 18,4 billion and exceeding market expectations. AWS's contribution was also decisive in terms of margins: the cloud generated 14,2 billion operating profit, that is, more than half of the group's overall profits.
Geographically, North America has produced 104,1 billion in revenue (+12%), while the international segment has reached 39,8 billion (+19%), confirming widespread growth at a global level. Another significant figure concerns the quality of growth: net profit rose to 30,3 billion (+77%), also supported by strategic investments in artificial intelligence, including a stake in Anthropic.
Finally, Amazon provided positive guidance for the next quarter, with revenues expected to be between 194 and 199 billion dollars and an operating profit of up to 24 billion, a sign of further expansion in the short term.
Overall, the April 29 quarterly results paint a clear picture: Big Tech continues to grow at a sustained pace, but the real game is being played on investments in artificial intelligence. With over $600 billion in spending expected in 2026, the sector is entering a new phase, in which the ability to monetize innovation will make the difference between those who consolidate leadership and those who will have to follow.
