Key Highlights

  • Microsoft (NASDAQ:MSFT) has capital expenditure of about USD 145 billion this fiscal year, and it reports with Alphabet (NASDAQ:GOOGL) after the close on Wednesday, October 28, 2026, with no consensus figures in the sources.
  • A projection published in April put big technology capital expenditure at about USD 700 billion for 2026, which places the Microsoft figure at roughly one fifth of that total on simple arithmetic.
  • Analysts have named Microsoft, Alphabet and Amazon results as tests of artificial intelligence spending, because investors want evidence that heavy outlays on data centres and chips are producing revenue.
  • No Alphabet capital expenditure figure appears in the sources, so a like for like comparison between the two companies cannot be drawn before the reports on Wednesday, October 28, 2026.

The Spending Figures Behind the Reports

Microsoft (NASDAQ:MSFT), which sells cloud services, software and artificial intelligence tools, has capital expenditure of about USD 145 billion this fiscal year, according to figures published around its April workforce announcement. Capital expenditure means money spent on long lived assets such as data centres and computing hardware. A projection published in April put the combined 2026 figure for big technology companies at about USD 700 billion. Simple arithmetic on those two published figures places Microsoft at roughly 21% of the projected total, although the two numbers cover different periods, a fiscal year and a calendar year, and are not directly comparable. Alphabet (NASDAQ:GOOGL) is also due to report after the close on Wednesday, October 28, 2026.

Why Heavy Spending Turns Results Into a Test

Large capital expenditure is recorded first as cash out and only later as depreciation, the gradual charge for using an asset, so profit effects lag the spending. That timing gap explains why analysts have described Microsoft, Alphabet and Amazon results as tests of artificial intelligence spending, as published on Tuesday, October 27, 2026. Context from the same period shows demand for computing capacity, with a report that Anthropic agreed to pay up to USD 120.5 billion for compute through 2029. Microsoft also offered voluntary separation to about 7% of its US workforce on Thursday, April 23, 2026, after cutting 15,000 jobs the previous year, which shows cost management alongside the spending. No causal link is stated in the sources.

Risks and What to Watch

The bull reading is that artificial intelligence revenue growth at Microsoft (NASDAQ:MSFT) and Alphabet confirms that the outlay earns a return and that capacity is being used. The bear reading is that spending continues to rise faster than the revenue attributed to it, which would raise questions about depreciation and margins. Named risks include extended hours volatility after an after the close release, uncertainty about the projected USD 700 billion total and the absence of an Alphabet figure in the sources. Consensus estimates for revenue and earnings per share are also absent. Investors should watch the capital expenditure commentary in both reports on Wednesday, October 28, 2026, and any change to spending guidance for the coming periods.

Where Things Stand

The answer is that the USD 145 billion Microsoft (NASDAQ:MSFT) capex figure sets the benchmark against which investors will judge spending commentary from Microsoft and Alphabet on Wednesday, October 28, 2026. The sources give no Alphabet capex figure and no consensus estimates, so the comparison remains incomplete. The next catalysts are the two reports after the close on Wednesday, October 28, 2026, and the capital expenditure guidance each company provides. Extended hours prices are thin and can change quickly, and this is not investment advice.