**Microsoft and Amazon Report Strong Cloud Growth Amid High Spending Plans**
Microsoft reported a 43% year-over-year increase in Azure revenue, reaching its first fiscal year with over $100 billion in revenue. The company’s “Intelligent Cloud” segment accounted for more than 39% of its operating income, as Microsoft plans to invest $175 billion in fiscal year 2027 to bolster its AI and cloud capabilities. Despite only a 3.5% rise in stock value this year, concerns regarding AI spending have eased following positive results in the latest quarter.
Amazon’s second-quarter revenue reached $200.6 billion, a 20% year-over-year growth, with significant contributions from its e-commerce and AWS segments. AWS, which generated over 60% of Amazon’s total operating income despite accounting for only 21% of revenue, experienced a 36.7% growth—the most substantial increase in 18 quarters. Amazon plans to spend $220 billion in the current year, as it diversifies its business into advertising and healthcare alongside its core offerings.
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