Big Tech Earnings Silence AI Spending Fears as Revenue Growth Accelerates
The recent earnings reports from Microsoft and Amazon have calmed concerns about Big Tech's AI spending binge. The two companies' quarterly results show that their significant investments in artificial intelligence are generating real revenue growth.
Microsoft reported a Q4 FY2026 revenue of $90 billion, up 18% year over year. Its Azure cloud revenue grew 43%, beating analyst expectations and marking the first time it has crossed $100 billion in revenue for the full fiscal year.
AWS generated $42.2 billion for Amazon, growing 36.7%, its fastest pace in 18 quarters. CEO Andy Jassy called AWS 'booming' and raised capex guidance to $220 billion, citing higher memory chip costs.
The market's reaction was immediate: Microsoft shares jumped 8% in after-hours trading, while Amazon rose over 9%. The news sent shockwaves through the tech industry, with SK Hynix and Samsung Electronics logging their best days on record.