Microsoft stock jumps 5% as cloud growth drives earnings and revenue beat
Azure revenue rose 48% to $33.17 billion, reinforcing investor confidence that Microsoft’s AI spending is starting to pay off.
- On Wednesday, October 28, 2026, Microsoft reported fiscal Q1 revenue of $92.3 billion, up 19%, with Azure revenue reaching $33.17 billion and growing 48% year-over-year, exceeding analyst expectations.
- Emphasizing a pivot toward AI infrastructure, Microsoft reorganized into 'Agents and Infra' and 'Devices and Consumer' segments, allocating $45.2 billion in quarterly capital expenditures with 75% dedicated to short-lived assets like CPUs and GPUs.
- Maintaining financial resilience, Microsoft generated $18.6 billion in free cash flow, remaining the only hyperscaler projected to stay cash-flow positive next year. The company eliminated 4,800 positions and offered voluntary buyouts to up to 60,000 employees.
- Microsoft shares rose about 4% in after-hours trading following the earnings announcement. Multiple analysts increased price targets as the results countered growing market anxiety regarding Big Tech's debt-fueled AI spending.
- Facing demand that still exceeds supply for AI services, Microsoft added 24 data centers across five continents this quarter. Management expects quarterly capital spending to exceed $50 billion as infrastructure expansion accelerates.
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Microsoft beats earnings estimates, even as AI spending spree continues - The Daily Chronicle
Microsoft smashed Wall Street estimates on Wednesday, with all eyes on the balance between the company’s revenue growth and its heavy artificial intelligence spending, which showed no signs of slowing down. The Redmond-based tech giant reported $92.3 billion in revenue, a 19% year-over-year increase, for the first quarter of its 2027 fiscal year, which ran from July through September, beating analysts’ consensus. Microsoft reported $36.6 billion…
Microsoft exceeded forecasts: Azure grew 48% to $33.17 billion. Results, AI spending, drop in Windows PC sales and quarter projection.
Microsoft Stock Rises on Earnings Beat, Azure Revenue Up 48% YoY
Microsoft Corporation (NASDAQ: MSFT) shares rose about 1% to $535.11 in Thursday's premarket trading after the company reported better-than-expected quarterly earnings and revenue, supported by accelerating growth in its Azure cloud business. The technology giant reported adjusted earnings of $4.89 per share for its fiscal 2027 first quarter, exceeding analysts' estimate of $4.72.Visit Website
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