Microsoft shares climb 4% as Azure surge fuels earnings beat

Microsoft’s fiscal first‑quarter results, released on Wednesday, showed revenue up 19% year over year and a 48% surge in Azure cloud revenue, sending the stock 4% higher in extended trading, CNBC reported.

What powered Microsoft’s earnings beat?

The earnings beat stemmed from strong cloud growth, with Azure generating $33.17 billion in revenue and expanding 48% versus the prior year, surpassing StreetAccount’s $32.32 billion estimate, CNBC said.

How did capital spending and cash flow look?

Capital expenditures and finance leases rose to $45.2 billion, about 30% higher than a year earlier, while free cash flow fell 27% to $18.63 billion, CNBC noted. Microsoft aims to spend over $50 billion in the next quarter on capex, above the StreetAccount consensus of $53.10 billion, and targets $170 billion for calendar 2027.

What are the outlook and segment performance?

For the upcoming fiscal quarter, Microsoft forecast revenue between $96 billion and $97.1 billion, roughly 18.8% growth at the midpoint, beating the LSEG consensus of $95.60 billion, CNBC reported. Azure is expected to grow 49%‑50% at constant currency. In the Agents and Infra segment, revenue rose nearly 25% to $76.8 billion, outpacing the $75.63 billion consensus, while Devices and Consumer slipped 3% to $15.48 billion but still beat the $15.05 billion estimate. Net income climbed to $36.63 billion, or $4.92 per share, from $27.75 billion, or $3.72 per share, a year earlier, and adjusted earnings excluded a roughly $200 million OpenAI loss, CNBC added.