Amazon Web Services reported revenue of $46 billion, marking a 39.3% growth rate. The business reached an annualized run rate of $184 billion. Operating income hit $17.8 billion with a 38.7% margin, while the backlog increased to $578 billion from $244 billion at the end of 2025.
Amazon plans to sell its Trainium chips externally starting in late 2027. In the third quarter, customers using Amazon's custom silicon saved over $2 billion. CEO Andy Jassy projected AWS growth exceeding 40% for both 2027 and 2028, noting the potential for AWS to reach $1 trillion in revenue within five years.
Microsoft reported Azure revenue of $33.2 billion, representing 48% growth. The company highlighted that customers with over 50,000 Copilot seats grew more than eightfold year over year. Microsoft's total 2026 capital expenditure was approximately $220 billion, with negative free cash flow of $33.5 billion.
Google Cloud revenue grew 103% to $30.7 billion, with an operating margin of 36.2%. Alphabet's total capital expenditure reached $51.4 billion, with negative free cash flow of $9.1 billion. The company expects capital expenditure to exceed $300 billion in 2027.
Oracle reported cloud infrastructure revenue of $7.4 billion, a 121% increase, with a remaining performance obligation of $664 billion. The company's quarterly capital expenditure reached $28 billion, with negative free cash flow of $5.4 billion and total debt of $125 billion. IBM revenue grew 5% to $17.1 billion.
