Microsoft and Alphabet earnings preview: cloud growth and capex in focus

Investing.com reports that Microsoft and Alphabet are set to release their earnings after the market closes on October 28, 2026. Market participants are closely watching these earnings reports for clues on whether AI spending is proving profitable. While both companies consistently beat earnings expectations, analysts are focusing on capital expenditures and growth in cloud services as key factors influencing investor sentiment.

As of October 28, 2026, at 3:24 PM EDT, Microsoft's stock was trading at $529.28, with a market capitalization of $3.93 trillion. Analysts have a consensus earnings per share (EPS) of $4.72, and the company reported revenue of $90.61 billion. Microsoft's stock has seen a 14.68% increase since the last trading session.

Alphabet's Class A shares were trading at $324.30, with a market capitalization of $3.98 trillion. Analysts anticipate an EPS of $3.02 and revenue of $127.69 billion. Alphabet's stock has experienced an 8.49% decline since the last trading session.

The prevailing market narrative suggests that Microsoft's earnings have been mixed, with the company beating EPS in four of the past four quarters but experiencing a price decline in three of those periods. Similarly, Alphabet has also met or exceeded earnings expectations in four quarters, but its stock has fallen after two of those quarters.

The market appears to be closely examining the capital expenditure story as a catalyst for the recent price movements of both companies. These insights serve as frameworks for understanding the market reaction to the upcoming earnings releases, rather than definitive predictions.