IDD Daily Brief: Thursday, Oct 29, 2026 — Cloud growth powers Alphabet and Microsoft as the Fed holds and GDP accelerates
> “I want people to realize that you shouldn’t think you know it all.” — Sir John Templeton
The Big Picture
- Cloud demand drove the two biggest reports. Alphabet's Google Cloud revenue rose 103% to $30.7 billion as total revenue grew 25%, while Microsoft's Azure revenue grew 48% and its commercial remaining performance obligation rose 73% to $677 billion.
- The Fed held rates, and the economy picked up. The Federal Reserve kept its target range at 3.75% to 4% on a 10-2 vote, and the Bureau of Economic Analysis said real GDP grew at a 3.4% annual rate in the third quarter.
- Oracle laid out a long-range plan. At its Investor Day, Oracle set fiscal 2030 targets of at least $225 billion in revenue and $21 of non-GAAP EPS, and capped additional capital raises through fiscal 2030 at $20 billion.
Economic Data
Third-quarter GDP: Real gross domestic product increased at an annual rate of 3.4% in the third quarter, up from 2.2% in the second quarter, according to the Bureau of Economic Analysis's advance estimate. Increases in investment, consumer spending and government spending were partly offset by lower exports, while imports rose.
Fed decision: The Federal Open Market Committee held the federal funds target range at 3.75% to 4%, with Lisa D. Cook and Beth M. Hammack dissenting in favor of a rate increase, according to the Fed's statement. The interest rate on reserve balances stays at 3.90%.
What it means: The Fed's statement described economic activity as expanding at a strong pace, and BEA's estimate shows growth accelerated from the second quarter.
Earnings
Reported since yesterday's brief
- Alphabet (GOOGL) reported revenue of $127.6 billion, while diluted EPS fell to $2.12 from $2.87 as other income swung to an $8.2 billion loss; capital expenditures reached $51.4 billion, according to its earnings release.
- Microsoft (MSFT) grew fiscal first-quarter revenue 19% to $92.3 billion and net income 32% to $36.6 billion, or $4.92 a share, and recast its results into two new segments.