As the Q2 earnings season unfolds, some of the tech sector’s biggest players—Microsoft, Apple, and Amazon—command the spotlight with their financial results and guidance.

Amazon is set to report its second-quarter results soon, with analysts anticipating revenue of $162 billion, representing a 9.5% year-on-year increase. Despite solid growth in the previous quarter and better-than-expected earnings, Amazon’s guidance for Q2 operating income has been cautious, reflecting the company’s defensive posture in the face of economic uncertainty, shifting trade policies, and potential recession risks. Capital expenditures have soared this year, a signal of Amazon’s ongoing investment in core infrastructure and artificial intelligence initiatives.

Amazon Web Services (AWS) continues to be a major contributor, posting $29.4 billion in Q1 revenue and maintaining robust operating margins. AWS’s strategy is to leverage its cloud infrastructure to accelerate AI adoption across industries, offering flexibility and cost-efficiency that many enterprises find attractive. This positions Amazon in direct competition with Microsoft’s cloud offerings, as both companies vie to lead in the enterprise AI-driven shift.

Apple, meanwhile, reported Q2 revenues of $95.4 billion, beating expectations, largely on the strength of the iPhone, which alone generated $45.7 billion. However, its services division—once a critical driver of high-margin growth—came up short, with margins dropping and increased costs stemming from ongoing tariffs. Apple’s increased investment in manufacturing in India indicates a shift toward greater supply chain resilience, but the company currently trails its peers in developing a comprehensive AI strategy. Apple’s focus remains on privacy-centric, on-device AI, contrasting with the more cloud-focused approaches of Amazon and Microsoft.

As earnings reports roll in, investors are watching how each company adapts to changing market dynamics, with AI innovation, cost control, and global supply flexibility emerging as central themes.