Google Cloud Nears Azure Revenue, but Microsoft Wins Over Investors

[The Information] Google Cloud's quarterly revenue more than doubled to over $30 billion, with operating income tripling to $11.12 billion, closing in on Microsoft Azure's $33 billion in the same period, which grew 48%, according to The Information. Alphabet's overall revenue rose 25% to $127.58 billion, slightly short of Wall Street forecasts, while heavy AI spending pushed free cash flow to negative $9 billion from positive $24 billion a year earlier. Search revenue grew 12% to $63.35 billion, the softest growth since the second quarter of 2025, and Google shares fell nearly 10% in after-hours trading. Microsoft shares rose about 3% after hours. Google said strong AI Mode query growth had an impact because of lower monetization in AI Mode.