Microsoft shares rise 4% as Azure growth fuels earnings beat
ITF Team1 min read
Microsoft posted 19% revenue growth and a 48% jump in Azure sales, sending the stock up 4% in after‑hours trading.
Microsoft (MSFT) posted a strong first‑quarter 2027 performance, with revenue climbing 19% year‑over‑year to $50.67 billion, topping analyst forecasts. The boost came largely from Azure, the company’s cloud platform, which surged 48% to $33.17 billion, making it Microsoft’s largest single‑business segment.
Revenue and profit highlights
- Net income rose to $36.63 billion, or $4.92 per share, from $27.75 billion a year earlier.
- Free cash flow fell 27% to $18.63 billion, still well above rivals such as Alphabet.
- Capital expenditures and finance leases reached $45.2 billion, about 30% higher than a year ago.
Capital spending shift
- Around three‑quarters of the quarter’s capex now funds short‑lived assets like Intel chips and Nvidia GPUs, up from roughly two‑thirds in prior quarters.
- Higher cash outlays for property and equipment reflect timing differences and a lower mix of finance leases.
What traders are watching
- Future Azure growth rates and guidance on AI‑related spending.
- Potential impact of the announced buyout program covering up to 60,000 employees.
- Upcoming earnings call at 5:30 p.m. ET for further detail on revenue outlook and cash‑flow expectations.
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