Microsoft rises as Azure growth accelerates to 48% and revenue tops expectations
Earnings results
- EPS comparison not verified
Actual: $4.89 (adjusted)
- Revenue beat +1.8%
Actual: $92.279B · Cons.: $90.62B (Total reported revenue)
- Guidance
Next-quarter guidance will be provided on the earnings call; no new numerical outlook in the release.
Earnings and the stock move
Microsoft reported faster Azure and cloud growth with quarterly revenue above expectations. The results strengthen the case that AI infrastructure is generating sales, while lower cash remaining after property spending shows why investment returns still matter.
Q1 FY2027 earnings recap
Microsoft rose 4.55% to $555.16 after hours on October 28, 2026 as faster Azure growth helped revenue exceed expectations.
- Fiscal first-quarter revenue reached $92.28 billion, up 19% and about 1.8% above the $90.62 billion expected.
- Adjusted EPS, or profit per share, rose 18% to $4.89. Reported GAAP EPS was $4.92, including a small OpenAI investment gain.
- Azure revenue grew 48%, while Microsoft Cloud revenue rose 30% to $63.9 billion. Faster cloud growth helps turn demand for AI computing into sales.
- Commercial contracted revenue yet to be earned reached $677 billion, up 73%. This supports future sales visibility but is not revenue already collected.
- Cash spending on property and equipment roughly doubled to $39.37 billion. Cash remaining after that spending fell to $18.63 billion, keeping investment costs in focus.
- The release leaves next-quarter guidance for the earnings call. The key question is whether cloud growth can keep outpacing the cost of adding computing capacity.
The earnings jump cleared October highs near $541–$551. Holding that area would strengthen the breakout; heavy spending, competition and a reversal below it remain risks.
Financials and technicals
Charts through Oct 28, 2026. The session move above may reflect later news.
Technical setup and risks
The October 28 regular close was $531.01 near the 20-day average. The separate earnings reaction moved above the $541–$551 October high area. Holding this area on the next regular-session close would strengthen the breakout; a return below it would weaken follow-through.
After-hours move is measured versus the same-day regular close AI-assisted research with source and calculation checks. Prices may be delayed. Technical charts use the stated completed session, which can precede the quoted intraday move. Educational information; investing involves risk.