Cloud Numbers Are In; This Week the Spotlight Moves to Phones, Laptops and Chips

Cloud revenue growth came alongside higher property and equipment spending, while hardware companies face rising component costs.

Rhea-AI Summary

Apple (AAPL) holds its fiscal fourth-quarter results call on November 2, as investor attention shifts from cloud earnings to hardware. Qualcomm (QCOM) reports fiscal fourth-quarter and full-year results on November 4, after the close. Apple's September-quarter 2025 comparison is revenue of $102.5 billion and diluted earnings per share of $1.85.

The preceding cloud reports showed Microsoft (MSFT) revenue rising 19% to $92.3 billion, Alphabet (GOOG) revenue growing 25% to $127.6 billion, and Amazon (AMZN) sales increasing 12% to $201.9 billion. Alphabet and Amazon nevertheless reported lower diluted earnings per share than a year earlier. Property and equipment spending increased at all three companies. Qualcomm has cited rising semiconductor input costs and steps to reflect them in pricing; Amazon identified supply volatility, including memory chips, as a factor that could affect results.

19 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointApple fiscal third-quarter revenue rose 16% year over year to $109.4 billion.
• Moderate pointApple fiscal third-quarter diluted EPS rose 29% to $2.02, including $0.11 from tariff refunds.
• Moderate pointMicrosoft September-quarter revenue increased 19% to $92.3 billion.
• Moderate pointMicrosoft September-quarter operating income increased 21% to $45.9 billion.
• Moderate pointMicrosoft September-quarter GAAP diluted EPS increased 32% to $4.92.
• Moderate pointMicrosoft Cloud revenue rose 30% to $63.9 billion; Azure revenue grew 48%.
• Moderate pointMicrosoft commercial remaining performance obligation, contracted future revenue, climbed 73% to $677 billion.
• Moderate pointAlphabet third-quarter consolidated revenue grew 25% to $127.6 billion.
• Moderate pointGoogle Cloud revenue climbed 103% to $30.7 billion, with TPU systems sales contributing.
• Moderate pointGoogle Services revenue rose 11% to $96.3 billion.
• Moderate pointAmazon third-quarter net sales rose 12% to $201.9 billion.
• Moderate pointAmazon AWS third-quarter sales increased 39% to $46.0 billion.
• Moderate pointAmazon operating income rose to $28.1 billion from $17.4 billion, with a 13.9% operating margin.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Amazon expects fourth-quarter sales of $240.0 billion–$247.0 billion and operating income of $28.5 billion–$33.5 billion.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Amazon projects AWS revenue growth of over 40% in both 2027 and 2028.
• Moderate pointQualcomm fiscal third-quarter automotive revenue rose 61% to $1.59 billion.

3 minor points

• Minor pointApple June-quarter gross margin of 50.1% included approximately 2 percentage points of favorable tariff refunds.
• Minor point. Forward-looking: it has not happened yet and may not happen.Apple's new MacBook Pro starts at $2,899 for the 14-inch M5 Pro model; availability begins November 6.
• Minor pointGoogle subscriptions, platforms and devices revenue increased to $14.3 billion from $12.9 billion.

Negative

• Moderate pointMicrosoft property and equipment additions reached $39.4 billion, versus $19.4 billion a year earlier.
• Moderate pointAlphabet property and equipment purchases reached $51.4 billion, versus $24.0 billion a year earlier.
• Moderate pointAmazon property and equipment purchases reached $77.3 billion, versus $35.1 billion a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Amazon continues to expect approximately $220 billion in 2026 cash capital expenditures.
• Moderate pointAlphabet diluted EPS fell to $2.12 from $2.87 a year earlier.
• Moderate pointAmazon diluted EPS fell to $1.89 from $1.95; prior-year results included $9.5 billion in pre-tax Anthropic gains.
• Moderate pointMicrosoft Devices and Consumer revenue declined 3% to $15.5 billion; Windows OEM and Devices revenue fell 22%.
• Moderate pointQualcomm fiscal third-quarter revenue declined 4% to $9.9 billion.
• Moderate pointQualcomm fiscal third-quarter handset revenue fell 20% to $5.09 billion.

3 minor points

• Minor pointAlphabet's $8.7 billion equity securities loss lowered diluted EPS by $0.55.
• Minor pointQualcomm cited rising semiconductor input costs and steps to reflect those costs in product pricing.
• Minor point. Forward-looking: it has not happened yet and may not happen.Amazon identified supply volatility, including memory chips, as a factor that could affect results.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Nov. 2, 2026 /PRNewswire/ -- Market Updates News Commentary - Microsoft, Alphabet and Amazon reported third-quarter results last week, and the next-session moves in their shares ranged from a fractional dip to a double-digit drop. Attention now turns to consumer hardware: Apple holds its fiscal fourth-quarter results call this afternoon, and Qualcomm, whose largest revenue stream comes from handsets, reports on Wednesday. Active Companies from around the markets with current developments this week include: Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon.com, Inc. (NASDAQ: AMZN), Qualcomm Incorporated (NASDAQ: QCOM).

Apple's conference call to discuss its fourth-quarter results is scheduled for Monday, November 2, at 2:00 p.m. PT / 5:00 p.m. ET, according to the company's investor relations site. The comparison investors will be measuring against is the September quarter of 2025, when Apple posted revenue of $102.5 billion, up 8 percent year over year, and diluted earnings per share of $1.85. Qualcomm has said it will publish its fourth-quarter and fiscal 2026 results on Wednesday, November 4, after the close, with a conference call beginning at 1:45 p.m. PT.

Last week's reports also showed how quickly spending on property and equipment is climbing. In the quarter ended September 30, Microsoft's additions to property and equipment totaled $39.4 billion, compared with $19.4 billion a year earlier; Alphabet's purchases of property and equipment reached $51.4 billion, up from $24.0 billion; and Amazon's purchases of property and equipment came to $77.3 billion, compared with $35.1 billion. Amazon attributed the year-over-year increase in its trailing twelve-month purchases of property and equipment, net of proceeds from sales and incentives, primarily to investments in artificial intelligence, and said it continues to expect 2026 cash capital expenditures of approximately $220 billion.

Component costs are the other thread running through the sector. Qualcomm said in July that input costs are climbing across the semiconductor industry, from wafer fabrication and advanced packaging to memory, and that it is taking steps to reflect those higher costs in its product pricing. Amazon's guidance named supply volatility, including for memory chips, among the factors that could affect its results. Trade policy has also shown up in reported numbers: Apple's June-quarter gross margin of 50.1 percent included a favorable impact of approximately 2 percentage points from tariff refunds.

With two hardware reports landing in three days, prices can gap sharply in either direction once the numbers are out. The free Knowledge is Power guide from Stock Preachers, available at market-updates.com/, shows how to read those post-earnings setups on the chart before deciding what a move means.

In other industry developments and happenings in the market this week include:

Apple Inc. (NASDAQ: AAPL)

Apple reported on July 30 fiscal third-quarter revenue of $109.4 billion, up 16 percent year over year, and diluted earnings per share of $2.02, up 29 percent, including a favorable impact of $0.11 from tariff refunds. Monday's call is also Apple's first quarterly results call since September 1, 2026, the date the company set in April for John Ternus to become chief executive officer and Tim Cook executive chairman.

Ahead of the report, Apple introduced on October 28 a MacBook Pro with a PROLED XDR display built on tandem OLED technology, which also brings Touch capabilities to the Mac for the first time. Pre-orders opened the same day, availability begins Friday, November 6, and the 14-inch model with M5 Pro starts at $2,899 (U.S.). Apple shares closed Friday at $344.63, down 1.23%.

"The new MacBook Pro with PROLED XDR Display is a monumental step forward for the Mac," said Johny Srouji, Apple's chief hardware officer.

Microsoft Corporation (NASDAQ: MSFT)

Microsoft reported on October 28 revenue of $92.3 billion for the quarter ended September 30, an increase of 19%, with operating income up 21% to $45.9 billion. Diluted earnings per share was $4.92 on a GAAP basis, up 32%, and $4.89 on a non-GAAP basis that excludes the impact from investments in OpenAI, up 18%. Microsoft Cloud revenue rose 30% to $63.9 billion, Azure revenue grew 48%, and commercial remaining performance obligation climbed 73% to $677 billion. Revenue in Devices and Consumer declined 3% to $15.5 billion, with Windows OEM and Devices revenue down 22%. The shares closed at $530.14 on October 29, down 0.16%.

"We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack," said Satya Nadella, chairman and chief executive officer of Microsoft.

Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL)

Alphabet reported on October 28 that third-quarter consolidated revenues grew 25% to $127.6 billion, its 13th consecutive quarter of double-digit revenue growth. Google Cloud revenues climbed 103% to $30.7 billion, with TPU systems sales cited as a meaningful contributor, while Google Services revenues rose 11% to $96.3 billion and the Google subscriptions, platforms, and devices line grew to $14.3 billion from $12.9 billion. Diluted earnings per share was $2.12, compared with $2.87 a year earlier; the company said the net effect of an $8.7 billion loss on equity securities lowered diluted earnings per share by $0.55. Class A shares closed at $283.82 on October 29, down 12.64%.

"We had a strong quarter and are now on a half-trillion dollar revenue run rate," said Sundar Pichai, CEO of Google and Alphabet.

Amazon.com, Inc. (NASDAQ: AMZN)

Amazon reported on October 29 third-quarter net sales of $201.9 billion, up 12%, with AWS segment sales up 39% to $46.0 billion. Operating income rose to $28.1 billion from $17.4 billion, for an operating margin of 13.9%, which the company described as its highest ever. Net income was $20.7 billion, or $1.89 per diluted share, compared with $1.95 per diluted share a year earlier, when results included $9.5 billion of pre-tax gains from its investments in Anthropic. Amazon expects fourth-quarter net sales of between $240.0 billion and $247.0 billion and operating income of between $28.5 billion and $33.5 billion. The shares closed Friday at $240.35, down 1.41%.

"Our AWS investment in functionality and infrastructure is working, with over 39% year-over-year revenue growth in Q3 ($184 billion revenue run rate) and projected revenue growth rates of over 40% both in 2027 and in 2028," said Andy Jassy, President and CEO, Amazon.

Qualcomm Incorporated (NASDAQ: QCOM)

Qualcomm will report its fiscal fourth-quarter results after the close on Wednesday. For that quarter, the company guided in July to revenues of $9.7 billion to $10.5 billion and non-GAAP diluted earnings per share of $2.05 to $2.25. In its fiscal third quarter ended June 28, revenues were $9.9 billion, down 4%, with GAAP diluted earnings per share of $1.87 and non-GAAP diluted earnings per share of $2.21. In its QCT chip business, handset revenues fell 20% to $5.09 billion, while automotive revenues rose 61% to $1.59 billion. Qualcomm shares closed Friday at $164.79, down 11.12%.

"Despite a challenging memory and supply environment, our third quarter results reflect solid execution of our growth strategy, with quarterly revenues at the high end of guidance," said Cristiano Amon, President and CEO of Qualcomm Incorporated.

Last week's cloud reports were followed by very different share moves, and this week's hardware results can shift the picture just as quickly. Learn to read those setups with the free Stock Preachers guide, plus The Roadmap market reports, at market-updates.com/.

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FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When does Apple report fiscal fourth-quarter results, and what is the year-earlier comparison?

Apple's fiscal fourth-quarter results call is scheduled for November 2, 2026, at 2:00 p.m. PT / 5:00 p.m. ET. In the September quarter of 2025, Apple reported revenue of $102.5 billion, up 8 percent year over year, and diluted earnings per share of $1.85.

What guidance did Qualcomm give for its fiscal fourth quarter of 2026?

Qualcomm's July guidance called for fiscal fourth-quarter revenue of $9.7 billion to $10.5 billion and non-GAAP diluted earnings per share of $2.05 to $2.25. It will publish its fourth-quarter and fiscal 2026 results after the close on November 4.

What leadership transition preceded Apple's November 2026 earnings call?

Apple set September 1, 2026 as the date for John Ternus to become chief executive officer and Tim Cook executive chairman. The November 2 call is Apple's first quarterly results call since that date.