Microsoft rises about 4% after hours as Azure grows 48% and fiscal Q1 EPS of $4.89 tops forecasts
Revenue rose 19% to $92.3 billion and Microsoft Cloud reached $63.9 billion, while capex of $45.2 billion came in below the company's earlier projection.
Microsoft (MSFT) reported results for its fiscal first quarter, which ended Sept. 30, after the close on Wednesday and beat expectations on sales, profit and Azure growth.
| Item | FY27 Q1 | Estimate |
|---|---|---|
| Revenue | $92.28B (+19%) | $90.62B (FactSet, via Reuters) |
| EPS, non-GAAP | $4.89 (+18%) | $4.71 (FactSet, via Reuters) |
| Azure revenue | $33.17B (+48%) | $32.84B (Visible Alpha) |
| Capital expenditures | $45.2B | company had projected about $50B |
Details: Microsoft Cloud revenue rose 30% to $63.9 billion. GAAP EPS was $4.92 (+32%) and includes a $207 million net gain from OpenAI investments; a year earlier those investments produced a loss of about $3.1 billion, which is why GAAP profit grew faster (+32%) than non-GAAP (+18%). The Agents and Infra segment grew 25% to $76.8 billion, while Devices and Consumer fell 3%. Free cash flow of $18.6 billion was more than double the Visible Alpha estimate.
Why it matters: Azure growth accelerated to 48% while spending came in below plan, the opposite of Alphabet’s report minutes later. Investors are rewarding AI cloud growth that does not require ever-larger cash outlays.
Market reaction: The stock closed the regular session at $531.01 (-0.06%) and traded about 4% higher after hours (about $550-$553).
WMR data: MSFT went into the report just 2.3% below its high and up 10.5% year to date (WMR close data, Oct. 28). Follow the stock at /en/topics/microsoft/.
Next: The earnings call outlook for fiscal Q2 Azure growth and full-year capex, then Thursday’s regular-session reaction.
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