Microsoft Q1 Revenue Tops Estimates as Azure Grows 48%, Shares Rise 5% After Hours

Microsoft Corp. (MSFT) reported fiscal first-quarter results that beat expectations, with Azure revenue climbing 48% to $33.17 billion and free cash flow reaching $18.6 billion — more than double the $8.54 billion consensus. Shares rose more than 5% in after-hours trading. First-quarter revenue rose 20% year-over-year to $92.28 billion, and adjusted earnings per share came in at $4.89 versus the $4.73 expected. For the current quarter ending in December, Microsoft guided Azure growth of 49% to 50%, above the 47.6% estimate, and revenue of $96 billion to $97.1 billion, topping the $95.6 billion consensus. The free cash flow beat was partly attributable to deferred capital expenditures. Capital spending totaled $45.2 billion, below the company's prior $50 billion estimate, as some third-party capacity arrived later than planned. CFO commentary noted the timing shift does not reflect a change in investment plans, leaving spending pressure in the fourth quarter.