Big Tech grew revenue across the board in the second quarter, but the reporting cycle belonged to capital spending. Rising memory prices account for much of the capex increase. Cloud growth reaccelerated across AWS,1 Azure,2 and Google Cloud,3 and a leadership transition arrived at Apple.4 Here is what each name brought to the table this quarter.

Microsoft (MSFT)

Microsoft closed its fiscal year with revenue up 18% and Azure growth accelerating to 43%, ahead of what analysts had expected. Full-year Azure revenue passed $100 billion for the first time. Capital expenditure and finance leases rose 69%, and free cash flow fell 23%. According to CNBC, Microsoft told analysts to expect capital spending to rise again in fiscal 2027, pointing to demand signals across its portfolio. Investors were satisfied with Microsoft’s performance, sending shares up 8% after hours.² Microsoft closed the following session 15.51% higher.5

Amazon (AMZN)

Amazon’s cloud business grew at its fastest pace since 2021. AWS revenue rose 37%, and the backlog of contracted work reached $496 billion. Amazon said its artificial intelligence and in-house chip businesses had each passed a $25 billion annual run rate. It also raised the 2026 capital spending forecast to $220 billion, attributing the increase to memory prices, and cautioned that even that figure would not cover existing demand. With surging cloud growth overcoming growing capital spending, Amazon shares rose more than 10% after hours.¹ In the following session, Amazon closed 15.32% higher.5

Meta (META)

Meta grew revenue faster than analysts expected, but the print was overshadowed by an earnings miss of more than a dollar a share. According to CNBC, the shortfall came from costs, which climbed 55% on legal charges and severance from the layoffs Meta began in May. Free cash flow fell to $784 million from $8.55 billion a year earlier. Meta also narrowed its full-year capital expenditure guidance. Attention turned to how the company intends to monetize its AI work. Earlier in the month, Meta had released Muse Spark 1.1, which the company described as its strongest model yet for agentic and coding tasks. Investors were unimpressed with a weaker-than-expected revenue forecast and earnings miss, sending shares lower in extended trading.⁶

Apple (AAPL)

Apple beat on both revenue and earnings, with iPhone sales up 22% and Mac well ahead of forecasts. Guidance for the quarter came in soft, held back by supply constraints, and services revenue fell short of expectations. Apple has paid more for memory in each of the past three quarters and expects to continue to pay more. The quarter also brought a leadership change. According to CNBC, the call was Tim Cook’s last before John Ternus takes over as CEO. Investors focused on the guidance rather than the beat, sending shares down more than 6% in extended trading.⁴

Netflix (NFLX)

Netflix’s quarter landed roughly in line with expectations, but its guidance fell short. Revenue rose 13%, and Netflix guided the third quarter a notch lower, to 12%, while trimming the top of its full-year outlook. Engagement dominated the call. Netflix described its own as healthy and cautioned that viewing hours and profit do not move in step. According to CNBC, Netflix will also publish its engagement reports less often. Investors focused on the forecast, sending shares lower after the close.⁷

Alphabet (GOOGL)

Alphabet grew revenue 24%, comfortably ahead of estimates, carried by an 82% surge at Google Cloud. However, the capital expenditure outlook overshadowed it. According to CNBC, Alphabet now expects to spend as much as $205 billion in 2026, well beyond the ceiling it had previously set. Alphabet’s CFO noted the company cannot bring computing capacity online fast enough to meet demand and that, throughout the third quarter, it will purchase third-party capacity. Shares sank in extended trading.³

FANGMA Exposure with TECH

Cloud growth reaccelerated across Big Tech this quarter, and the group is investing heavily to meet that demand. The Evolve FANGMA Index ETF (TECH) is an index-based, equal-weight solution holding each of the six names in this roundup: Alphabet, Amazon, Apple, Meta, Microsoft, and Netflix. For investors seeking single-ticker access to all six, TECH offers a straightforward way to participate.

For more information on TECH, visit the fund page at https://evolveetfs.com/product/tech/.

 

Sources

  1. Amazon posts ‘booming’ cloud growth, hikes 2026 capex to $220 billion. July 30, 2026
  2. Microsoft beats Q4 cloud expectations as full-year Azure revenue tops $100 billion. July 29, 2026
  3. Alphabet earnings takeaways: Q2 revenue beats, GOOGL stock sinks on 2026 capex hike. July 22, 2026
  4. Apple earnings: Revenue tops estimates, but supply constraints weigh on guidance. July 30, 2026
  5. Bloomberg, as at July 31, 2026
  6. Meta’s stock drops on disappointing guidance, dwindling free cash flow. July 29, 2026
  7. Netflix stock falls as earnings forecast disappoints, company says it will give fewer engagement updates. July 16, 2026

 

Disclaimers:

Published August, 2026.

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