Microsoft (MSFT) and Alphabet are set to report quarterly earnings on Wednesday, following the Federal Reserve's October 28 interest rate decision. Cloud revenue, artificial intelligence (AI) spending, and cash generation are expected to be central themes in both reports, offering updated figures from two of the largest providers in the cloud market.

Fed Decision Arrives Before Tech Earnings

The Federal Reserve will announce its rate decision at 2 p.m. Eastern, followed by a news conference at 2:30 p.m. Alphabet has scheduled its third-quarter earnings call for 4:30 p.m., while Microsoft's fiscal first-quarter call begins at 5:30 p.m. The back-to-back timing pairs a fresh read on rate policy — a key driver of corporate borrowing costs — with results from two companies each spending tens of billions of dollars per quarter on cloud and AI capacity.

The reports follow a difficult week for technology shares. Meta shares fell after its latest earnings as investors assessed higher AI investment and weaker cash flow. Wednesday's releases will provide updated figures from two cloud providers, along with fresh detail on how their AI spending is affecting cash flow.

Microsoft Faces an Azure and Spending Test

Analysts expect Microsoft to report $90.6 billion in revenue and $4.71 in adjusted earnings per share, according to FactSet estimates. Those forecasts represent 17% revenue growth and 14% earnings growth from a year earlier.

Microsoft previously projected 45% Azure growth on a constant-currency basis. The company said demand remained above its available computing capacity. Management also forecast quarterly capital spending above $50 billion, including changes in how it accounts for data-center leases.

That spending comes as borrowing costs pressure AI cloud operators elsewhere in the sector. Microsoft reported more than 30 million paid Microsoft 365 Copilot seats in July. Its upcoming report will show whether software adoption and cloud demand are continuing.

Alphabet Results Put Cloud and Cash in Focus

Wall Street expects Alphabet to post about $127.9 billion in third-quarter revenue and earnings near $3.03 per share. That would represent revenue growth of roughly 25% from the prior year. Search advertising, YouTube, and Google Cloud remain the company's main reported growth areas.

Google Cloud revenue climbed 82% to $24.8 billion in the June quarter. Search advertising rose 17%, while YouTube advertising increased 13%. Alphabet plans $195 billion to $205 billion in capital spending in 2026, after raising its outlook in July — a range that works out to roughly $50 billion per quarter, putting its building pace on par with Microsoft's forecast quarterly outlays.

June-quarter operating cash flow reached $39.1 billion, but capital expenditure totaled $44.9 billion, producing roughly $5.9 billion in negative free cash flow. That shortfall puts Alphabet's cash generation in focus.

Amazon's earnings on October 29 will provide another comparison point for cloud growth and AI spending across major providers. Alphabet's previous $9.11 quarterly earnings per share included large unrealized investment gains, which inflated reported profit; the October report will offer updated results for its core businesses.

With the Federal Reserve's decision due hours earlier, both reports will be watched for evidence that cloud demand remains strong — and for how far each company's AI spending weighs on cash generation.