Alphabet, Meta and Microsoft Report AI-Driven Revenue Growth

Leading technology firms are seeing substantial financial gains from the deployment of artificial intelligence across cloud and advertising sectors. Meta Platforms reported first-quarter revenue of $56.3 billion, a 33% year-over-year increase fueled by AI-powered recommendation algorithms and advertising tools such as the Generative Ads Recommendation Model. This integration led to a 19% rise in ad impressions and a 12% increase in average price per ad.

Alphabet Inc. reported a 22% year-over-year revenue increase, with its Google Cloud segment surging 63% and search revenue rising 19%. The company currently generates nearly 75% of its software code using AI and utilizes Tensor Processing Units and Nvidia GPUs to power Google Gemini.

Microsoft reported third-quarter fiscal year 2026 revenue of $82.9 billion, representing an 18% year-over-year increase. Its AI business reached an annual revenue run rate exceeding $37 billion, while the Azure segment saw 40% sales growth and contracted obligations rose 99% to $627 billion. Despite these gains, heavy capital expenditure on AI infrastructure has caused some investor concern. Meta also noted a slight quarter-over-quarter decline in daily active users, which it attributed to issues in Iran and Russia, though its year-over-year user count grew 4% to 3.56 billion.