Zacks Investment Ideas feature highlights: Microsoft and Alphabet

For Immediate ReleaseChicago, IL – July 30, 2025– Today, Zacks Investment Ideas feature highlights Microsoft MSFT and Alphabet GOOGL.Will Cloud Results Boost Microsoft Earnings?The 2025 Q2 earnings season picks up considerable steam this week, with a wide variety of S&P 500 companies reporting results. Headlining the docket are several Mag 7 members, a list that includes Microsoft.A peer, Alphabet, already revealed its quarterly results, whose Cloud performance was largely positive and pleased the market. Given Microsoft's reliance on cloud performance, let's take a closer look at what to expect from the fellow tech titan.Alphabet ImpressesAlphabet's results were largely positive, with Google Cloud revenue soaring 32% year-over-year to $13.6 billion. The growth rate reflected a nice acceleration, with operating income in the segment also more than doubling YoY.Notably, GOOGL upped its capital expenditures (CapEx) guidance for its current fiscal year to $85 billion, up $10 billion from the prior mark. The increased spend remains aimed toward the data center and broader AI infrastructure buildout, a theme we'll likely see discussed in MSFT's and Amazon's (AMZN) upcoming releases too.Up 1.5% YTD, Alphabet shares have lagged the S&P 500 but nonetheless saw a nice charge higher following the latest release.Microsoft Earnings LoomEPS and sales expectations for MSFT's upcoming release have largely remained unchanged, with the titan expected to see 14% EPS growth on 14% higher sales. While revisions haven't budged much, the stability here in the revisions trends is still a positive takeaway, with the YoY growth rates also remaining sizable.Microsoft Cloud and AI strength drove its latest set of strong results, with Microsoft Cloud revenue soaring 20% year-over-year to $42.4 billion. Demand has remained strong for the tech titan, with commentary alluding to the trend remaining for years to come.Importantly, its Intelligent Cloud (includes Azure) revenue totaled a strong $26.8 billion, up 21% from the year-ago period. For the period to be reported, the Zacks Consensus estimate for Intelligent Cloud revenue stands at $28.9 billion.Putting Everything TogetherThe 2025 Q2 earnings season picks up notable steam this week, with several Mag 7 members on the docket. Microsoft is among the bunch, whose cloud results and capex commentary will be watched intently.Alphabet already delivered its quarterly results, with its cloud performance largely positive and providing decent read-throughs of what to expect from MSFT. Alphabet also upped its capex guidance, suggesting that MSFT might just do the same given the current AI frenzy.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. 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