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Microsoft and Google Cloud Show Strong Financial Performance Amid Rising AI Investments

Microsoft and Google Cloud Show Strong Financial Performance Amid Rising AI Investments

Microsoft’s Profit Jumps 32% Despite Big Increase in Spending
Microsoft’s Profit Jumps 32% Despite Big Increase in Spending

The company’s free cash flow stayed positive in the last quarter even as it spent $45.2 billion on capital expenses like data centers and offered to pay workers to leave.

Microsoft’s Free Cash Flow Beats Forecasts Despite Massive AI Spending
Microsoft’s Free Cash Flow Beats Forecasts Despite Massive AI Spending

Microsoft generated $18.6 billion in free cash flow in July–September 2026 as stronger cloud collections helped fund AI infrastructure and some spending shifted to later quarters.

Alphabet’s Google Cloud revenue doubles to $31 billion as cash flow stays deep red
Alphabet’s Google Cloud revenue doubles to $31 billion as cash flow stays deep red

Capital expenditures hit a record $51.4 billion and free cash flow was negative $9.1 billion.

Microsoft’s cloud growth accelerates, and so too does the spending
Microsoft’s cloud growth accelerates, and so too does the spending

Software giant is one of the tech industry’s largest spenders in cloud computing.

Microsoft's cloud growth, cash flow offer respite from AI spending fears
Microsoft's cloud growth, cash flow offer respite from AI spending fears

The results signal its hefty AI investments are paying off as wariness about Big Tech spending grows Read more at The Business Times.

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