My Take on Big Tech after Q226 Earnings

26Q2 earnings reveal a different AI strategy among Big Tech, leading to different short term and long term winners

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DoitDuit | Your Investing Friend & Guan 🍉
August 15, 2026

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The biggest week for earnings season is over with Microsoft, Alphabet, Meta and Amazon reporting their 2026Q2 earnings result.

This quarter’s result is especially interesting because it tells us a lot about the strategy each business is pursuing in this AI race.

Q2 Revenue

Sector Growth

Cloud & AI Infrastructure

- Google Cloud: US$24.8 bil

- AWS: US$42.2 bil

- Azure: US$39.3 bil

- Tencent Cloud (included in Fintech & Business Services): RMB60.3 bil

Cloud & AI Infrastructure

- Google Cloud: +82% yoy

- AWS: +37% yoy

- Azure: 32% yoy

- Tencent Cloud: +20% yoy

Advertising

- Google: US$81.6 bil

- Meta: US$59.4 bil

- Amazon: US$19.8 bil

- Tencent: RMB43.6 bil

Advertising

- Google: +14% yoy

- Meta: +27% yoy

- Amazon: +26% yoy

- Tencent: +22% yoy

Enterprise Software

- Microsoft: US$37.8 bil

- Google: US$12.9 bil

Enterprise Software

- Microsoft: +14% yoy

- Google: +15% yoy

When you look at the sector growth, the highest growth area is (by ranking):

  1. Cloud & AI Infrastructure;

  2. Advertising;

  3. Enterprise Software.

This shows that AI demand is directly generating more revenue for hyperscalers.

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