Cloud

This earnings season highlights a split in tech’s AI approach. Meta’s stock soared on strong revenue and ambitious AI infrastructure plans, assuaging investor concerns. Conversely, Microsoft faced a significant stock drop due to decelerating Azure growth and increased capital expenditures, despite a massive backlog driven by its OpenAI partnership. IBM also saw gains with its AI business doubling. However, broader software companies like ServiceNow experienced declines amidst fears of AI disrupting traditional software models.

Microsoft is set to report Q2 earnings, with analysts expecting $3.97 EPS on $80.27 billion revenue, a 15% year-over-year increase. Investors will watch Azure cloud growth, forecast slightly slower at around 39%, and significant AI infrastructure investments. Capital expenditures are projected to rise 52%. Price hikes for Office subscriptions are also anticipated. Recent stock performance shows a 10% dip in three months.

Oracle has launched Oracle Retail Supply Chain Collaboration, a new cloud platform designed to enhance retailer resilience and efficiency. This AI-powered solution offers improved visibility, forecasts, and disruption alerts, streamlining communication with suppliers for better oversight, compliance, and risk mitigation. It integrates with Oracle Retail Merchandising Foundation Cloud Service, facilitating supplier assessments and data consolidation for more effective merchandising strategies.

Despite challenges in 2025, Amazon’s stock is poised for a strong comeback in 2026. Key drivers include the reacceleration of AWS revenue growth, robust momentum in e-commerce and advertising, and strategic margin expansion, particularly from its high-margin ad business bolstered by Prime Video’s sports content. Continued improvements in retail, like expanded same-day delivery, and the crucial deployment of AI infrastructure in its cloud division will be vital for sustained investor confidence.

Salesforce’s fiscal Q3 beat EPS expectations ($3.25 vs. $2.86) with $10.26 bn revenue, an 8.6% YoY rise, and net income up to $2.09 bn aided by a $263 m investment gain. The company highlighted accelerated cloud adoption for Tableau and MuleSoft, and forecast FY Q4 revenue of $11.13‑$11.23 bn with adjusted EPS of $3.02‑$3.04. Growth is driven by AI‑focused acquisitions (Regrello, Waii), the new Agentforce platform, and the $8 bn Informatica deal. Despite a 29% stock decline this year, free cash flow grew 22% to $2.18 bn, though below consensus.

Oracle’s stock initially surged on bullish AI prospects and its OpenAI partnership, but has since relinquished significant gains. Investor sentiment is cooling due to concerns about the capital intensity of AI buildout, Oracle’s cash flow, and OpenAI’s commitment sustainability. Oracle is reportedly considering a large debt raise to fund its AI infrastructure expansion. Analysts highlight Oracle’s reliance on OpenAI and lower GPU rental margins compared to its core business. Upcoming earnings will be crucial for assessing Oracle’s AI strategy progress and financial health.

Amazon’s Q3 earnings exceeded expectations, driving shares up nearly 11%. Cloud sales (AWS) surged 20% to $33 billion, contributing significantly to operating profit. Digital advertising revenue jumped 24% to $17.7 billion. Total sales increased 13% to $180.17 billion, with EPS at $1.95. Amazon raised its spending forecast to $125 billion for AI, demonstrating its commitment to the sector. Despite strong performance, 14,000 corporate employees will be laid off as part of a restructuring effort focused on efficiency. Q4 sales are projected between $206 billion and $213 billion.

Kyndryl’s 2025 Readiness Report, based on a survey of 3,700 leaders, reveals that while AI investments are yielding increased ROI, scaling AI remains a challenge. Many organizations struggle with outdated IT infrastructure, skills gaps, and a complex regulatory landscape. Despite confidence in tools and processes, foundational tech often hinders innovation. Geopolitical pressures also force cloud strategy reevaluation. Companies are increasing AI spending, prioritizing cybersecurity, and recognizing the need to address talent and culture to fully realize AI’s potential.

DXC Technology launches DXC Assure Smart Apps, an AI-powered suite to modernize insurance operations and enhance decision-making. Utilizing Amazon Web Services and the DXC Assure Platform, the apps integrate seamlessly with existing systems, offering self-service capabilities, AI-driven customer support, and intelligent insights. Built with DXC’s Assure BPM and enhanced by ServiceNow, the Smart Apps promise scalable workflows and rapid deployment, aiming for an 80% reduction in process design time, enabling insurers to innovate without disrupting existing investments.

CoreWeave, the AI Hyperscaler, announces it is the first AI cloud provider to deploy NVIDIA’s latest GB300 NVL72 systems, promising significant performance boosts for AI reasoning and agentic workloads. This strategic move, supported by partnerships with Dell, Switch, and Vertiv, reinforces CoreWeave’s commitment to offering state-of-the-art AI infrastructure for global innovators.