The world’s largest technology companies posted another round of strong quarterly results on Wednesday, underscoring the growing influence of artificial intelligence and cloud computing on the global economy.
Alphabet Inc., Amazon, Meta Platforms and Microsoft all exceeded Wall Street expectations for the first quarter, with robust demand for AI services driving revenue and profits across the sector.
Among the four, Alphabet stood out. Shares in the Google parent rose more than 7% in after-hours trading after the company reported a sharp jump in earnings, helped by strong growth in its cloud division and continued gains in digital advertising.
Alphabet reported net income of $62.6 billion for the January-to-March period, an 81% increase from a year earlier. Revenue rose 22% to $109.9 billion, comfortably ahead of analysts’ forecasts. Its cloud business, which has become central to the company’s AI strategy, saw revenue surge 63% to $20 billion.
The performance reflects the rapid adoption of AI tools by businesses and governments, as well as continued strength in Google’s advertising business. Alphabet’s market value, already above $4 trillion, moved closer to the $4.5 trillion mark following the results.
Microsoft also delivered solid numbers, with net income rising 23% to $31.8 billion. Revenue increased 18% to $82.9 billion, driven by continued expansion in its Azure cloud platform and broader AI offerings. The company said demand for cloud and AI services remains strong, though it plans to significantly increase capital spending this year.
Amazon reported strong gains as well, with profit nearly doubling to $30.3 billion. Revenue climbed 17% to $181.5 billion, boosted by accelerating growth at Amazon Web Services. Sales at AWS rose 28%, the fastest pace in nearly four years, reflecting rising demand for cloud infrastructure and AI capabilities.
Meta also beat expectations, posting a 61% rise in profit to $26.8 billion as advertising revenue remained strong across its platforms. However, investor enthusiasm was tempered after the company raised its capital spending forecast to fund expanding AI infrastructure. Its shares fell in after-hours trading as markets reacted to the higher spending outlook.
The results highlight the scale of investment required to compete in the AI race. Tech companies are spending hundreds of billions of dollars on data centres, chips and infrastructure, betting that demand for AI-powered services will continue to grow.
The digital economy, including cloud computing, online advertising and e-commerce, now accounts for a significant share of global output. As broader economic growth faces pressure from rising energy costs and geopolitical tensions, the technology sector remains one of the strongest drivers of expansion.
