Overview
- Alphabet reported $102.3 billion in Q3 revenue, its first quarter above $100 billion, cited a $155 billion Google Cloud backlog tied to AI demand, and raised 2025 capex to $91–$93 billion with a significant increase flagged for 2026.
- Alphabet shares rose about 5–6% after the beat, as management said AI features in Search and Cloud are driving query growth, ad strength, and more billion‑dollar cloud deals than the prior two years combined.
- Meta lifted 2025 capex to $70–$72 billion and said 2026 spending will be notably larger, defended front‑loading compute for future AI products, and saw shares fall roughly 8–12% after a $15.9 billion one‑time tax charge cut net income.
- Microsoft posted $77 billion in quarterly revenue and $34.9 billion in capex focused on AI infrastructure, with CFO guidance that spending will increase sequentially into fiscal 2026 as demand outpaces capacity.
- Analysts highlighted a widening gap between firms showing direct AI monetization and those asking for patience, as warnings about multi‑year commitments, vendor financing and a possible AI bubble grow louder.