Microsoft beats quarterly cloud revenue estimates
MSFT•Azure revenue rose 48% to $33.17 billion in the first quarter, above estimates of $32.84 billion. Microsoft reported $18.6 billion in free cash flow and $45.2 billion in capital expenditure.
1. Azure revenue tops estimates
Microsoft's Azure cloud revenue grew 48% to $33.17 billion in the first quarter ended September, surpassing Visible Alpha's estimate of $32.84 billion. Azure revenue was $29.4 billion in the prior quarter.
2. Spending and cash flow
Capital expenditure was $45.2 billion, up from $34.9 billion a year earlier and below Microsoft's own $50 billion projection for the quarter. Free cash flow was $18.6 billion, compared with analysts' estimate of $8.54 billion.
3. AI investment context
Microsoft had forecast capital expenditure of $190 billion in 2026. Its shares rose about 4% in extended trading after the results. The article says some analysts see Microsoft's balance sheet as an advantage as AI spending increases.
