Google Parent company Alphabet reported its second-quarter financial results, with revenue reaching $119.796 billion, but free cash flow turned negative for the first time, recording -$5.9 billion.The company raised its full-year capital expenditure guidance for fiscal year 2026 to between $195 billion and $205 billion and suspended its stock buyback program. Following the earnings release, Alphabet’s stock price fell 2.46%.

Meanwhile, Microsoft. reported its fourth-quarter results for fiscal year 2026, with revenue reaching $90.01 billion. Azure cloud services grew by 43%, and full-year revenue exceeded $100 billion.Copilot’s paid user base reached 30 million, and commercial Remaining Performance Obligations (RPO) surged 84% to $678 billion.Although free cash flow declined by 23.19% to $19.64 billion, the market responded positively to its AI strategy and performance, and Microsoft’s stock surged 15.51% following the earnings report. Both tech giants significantly increased their infrastructure spending, but differing market expectations regarding the return on AI investments led to starkly contrasting stock price performances.