Microsoft Posts 110% YoY RPO at $625B While Azure Faces GPU Caps
Microsoft posted mid-teens revenue growth last quarter with 110% YoY RPO at $625 billion and 39% YoY cRPO growth, though GPU supply capped Azure’s 39% expansion. A senior executive expects AI agents to drive per-seat licensing demand even as shares dipped 1.01% below key moving averages.
1. Q3 Performance and Supply Constraints
Microsoft posted mid-teens revenue growth last quarter, with RPO rising 110% YoY to $625 billion and cRPO climbing 39% YoY. However, GPU availability constrained Azure’s growth to around 39%, highlighting supply challenges even as demand remains robust.
2. AI Agents Driving Licensing Demand
Microsoft leadership views AI agents as a growth catalyst, arguing each agent requires its own software license. Executives forecast this trend could expand per-seat licensing sales beyond traditional enterprise user counts.
3. Technical Indicators Show Medium-Term Pressure
Shares dipped 1.01% in the latest session, slipping below both 20-week and 50-week moving averages while holding above the 200-week line. Weak RSI readings and a bearish MACD suggest potential medium-term selling pressure on the stock.