Microsoft earnings blowout: Azure surges 48%, but capital spending unexpectedly hits the brakes; shares jump 6% after hours
After the market close on October 28, U.S. time, Microsoft (MSFT) reported results for the first quarter of fiscal year 2027, beating Wall Street expectations across key metrics.
📈 Overall results: Revenue and profit both beat expectations
Revenue: $92.28 billion (up 19% year over year), above expectations of $90.69 billion.
Net income: $36.63 billion (up 32% year over year).
Adjusted EPS: $4.89, above expectations of $4.73; GAAP EPS was $4.92, also beating expectations.
☁️ Core growth engine: Azure reveals its numbers in dollars for the first time
Microsoft disclosed Azure’s absolute revenue in dollars for the first time: $33.17 billion, up a blistering 48% year over year, well above analysts’ expectations of 44% and last quarter’s 42%. Growth is accelerating even with its annualized revenue base already above $100 billion, directly undermining the narrative that “AI demand is slowing.”
🚨 The real surprise: Capital spending came in below expectations
Capital expenditures this quarter, including finance leases, totaled $45.2 billion, up 30% year over year but well below the market’s expectation of $50.67 billion. Microsoft attributed this to delays in the delivery of some third-party computing capacity. The market interpreted this as a sign that AI spending is more measured than expected, making it a key catalyst for the stock’s rise.
The market voted with its feet: After the results were released, Microsoft shares jumped as much as 6.4% after hours, in stark contrast to Google, which plunged the same day after its free cash flow turned negative.
The central tension: Azure’s 48% growth shows that demand for AI commercialization is real and strong, while capital spending below expectations temporarily eases market fears of “unlimited spending.” However, Microsoft’s CFO also warned that capital expenditures will exceed $50 billion this quarter and continue to rise over the next few quarters. The restraint is temporary; the arms race is far from over.
Disclaimer: This is an objective summary of publicly reported financial results only and does not constitute investment advice.
#微软盘后股价涨6% #股票财报季 $MSFTB
After the market close on October 28, U.S. time, Microsoft (MSFT) reported results for the first quarter of fiscal year 2027, beating Wall Street expectations across key metrics.
📈 Overall results: Revenue and profit both beat expectations
Revenue: $92.28 billion (up 19% year over year), above expectations of $90.69 billion.
Net income: $36.63 billion (up 32% year over year).
Adjusted EPS: $4.89, above expectations of $4.73; GAAP EPS was $4.92, also beating expectations.
☁️ Core growth engine: Azure reveals its numbers in dollars for the first time
Microsoft disclosed Azure’s absolute revenue in dollars for the first time: $33.17 billion, up a blistering 48% year over year, well above analysts’ expectations of 44% and last quarter’s 42%. Growth is accelerating even with its annualized revenue base already above $100 billion, directly undermining the narrative that “AI demand is slowing.”
🚨 The real surprise: Capital spending came in below expectations
Capital expenditures this quarter, including finance leases, totaled $45.2 billion, up 30% year over year but well below the market’s expectation of $50.67 billion. Microsoft attributed this to delays in the delivery of some third-party computing capacity. The market interpreted this as a sign that AI spending is more measured than expected, making it a key catalyst for the stock’s rise.
The market voted with its feet: After the results were released, Microsoft shares jumped as much as 6.4% after hours, in stark contrast to Google, which plunged the same day after its free cash flow turned negative.
The central tension: Azure’s 48% growth shows that demand for AI commercialization is real and strong, while capital spending below expectations temporarily eases market fears of “unlimited spending.” However, Microsoft’s CFO also warned that capital expenditures will exceed $50 billion this quarter and continue to rise over the next few quarters. The restraint is temporary; the arms race is far from over.
Disclaimer: This is an objective summary of publicly reported financial results only and does not constitute investment advice.
#微软盘后股价涨6% #股票财报季 $MSFTB
