Alphabet reported revenue up 25% to $127.6 billion, slightly below estimates, as Search and YouTube ads underperformed. Google Cloud revenue grew 103% to $30.7 billion with $11.1 billion in operating income. Capex reached $51.4 billion, double last year's $24.0 billion, pushing free cash flow to -$9.1 billion.
Alphabet raised $28.7 billion in senior notes and $12.4 billion from stock sales; long-term debt rose from $46.5 billion at the end of 2025 to $125.1 billion. It held 2026 capex guidance at $195-205 billion and said 2027 spending will "increase significantly". Shares fell after hours.
Microsoft sales rose 19% to $92.3 billion, with adjusted EPS of $4.89 against about $4.72 expected. Azure grew 48% to $33.17 billion; free cash flow fell 27% to $18.63 billion after $39.37 billion in cash capex. Shares rose after hours.