Microsoft Q1 2026 Earnings Report
- Here's a summary of Microsoft's fiscal first quarter earnings report:
- expected $75.33 billion) * Revenue Growth: 18% year-over-year (from $65.6 billion) * Net Income: $27.7 billion (up from $24.67 billion last year)
- * Azure Revenue: $30.9 billion (up 28% year-over-year, beating estimates of $30.25 billion) * Azure Growth: 40% (overall cloud buisness) * Azure & Other Cloud Services (Fiscal 2025):...
Microsoft (MSFT) Q1 Earnings Report – Key Takeaways:
Here’s a summary of Microsoft’s fiscal first quarter earnings report:
Financial Highlights:
* EPS: $3.72 (vs. expected $3.67)
* Revenue: $77.67 billion (vs. expected $75.33 billion)
* Revenue Growth: 18% year-over-year (from $65.6 billion)
* Net Income: $27.7 billion (up from $24.67 billion last year)
Cloud Performance (Key Driver):
* Azure Revenue: $30.9 billion (up 28% year-over-year, beating estimates of $30.25 billion)
* Azure Growth: 40% (overall cloud buisness)
* Azure & Other Cloud Services (Fiscal 2025): Revenue jumped 34% to over $75 billion.
other Notable Points:
* OpenAI investment impact: A $3.1 billion hit to net income (41 cents per share) due to investment in OpenAI.
* Capital Expenditures: Growth in capital expenditures is expected to accelerate this fiscal year, contributing to a ~4% stock slip in extended trading.
* Q2 Outlook: microsoft expects revenue between $79.5 billion and $80.6 billion (midpoint $80.05 billion, slightly above analyst expectations of $79.95 billion).
* Azure Growth (Q2): Expected to be 37% at constant currency, in line with estimates.
Competition:
* Azure competes with Amazon Web Services and Google Cloud.