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Google ($GOOG), Microsoft ($MSFT) and Amazon Web Services ($AMZN AWS) reported…

2026-07-31 · 03:39 UTC ·@IrnestKaplan ·0 min read

Brief

Hyperscaler revenue: The three majors—Google ($GOOG), Microsoft ($MSFT) and Amazon Web Services ($AMZN AWS)—reported quarter-to-June results with accelerating revenue and rising profit margins. The author attributes strong AI-driven demand to these gains, notes incremental EBIT margins clustering near 50%, and highlights Microsoft’s Intelligent Cloud/Azure (Azure revenue +43%) as part of the analysis.

Why it matters

Google ($GOOG), Microsoft ($MSFT) and Amazon Web Services ($AMZN AWS) reported quarter-to-June results showing revenue accelerating at scale and higher profit margins (post dated 2026-07-31).

Key details

  • Incremental EBIT margins across the three hyperscalers are clustering around 50%.
  • Microsoft analysis used the Intelligent Cloud segment (Azure sits inside it); Azure revenue grew 43% and Microsoft does not disclose Azure EBIT separately; the author attributes a big positive impact from AI on revenue and profit.
Source evidence

Hyperscaler revenue is accelerating at scale with increasing margins. The 3 majors have reported their quarter to June. AI is having a big positive impact on revenue and profit.

$GOOG, $MSFT and $AMZN AWS are like the "Fed" of technology. When they report, it sets the tone for the entire technology complex. The tone is clearly positive.

See the table below:
🟢 In all three cases, revenue has accelerated at scale.
🟢 In all three cases, the profit margin has increased.
🟢 Incremental EBIT margins are clustering around 50%.

For Microsoft, I've used Intelligent Cloud, their reported segment. Azure sits within that but they don't disclose EBIT separately. Azure revenue grew 43%.