Overview
- Microsoft posted fiscal Q1 EPS of $4.13 on revenue of $77.67 billion, beating estimates as Azure grew 40% year over year on AI demand.
- Guidance calls for fiscal Q2 revenue of $79.5 billion to $80.6 billion and roughly 37% Azure growth on a constant-currency basis.
- Baird initiated coverage at Outperform with a $600 price target, citing leadership across AI infrastructure and applications.
- Analyst William Power projects about $74 billion in fiscal 2026 free cash flow even as capital spending is forecast to rise from roughly $88 billion in fiscal 2025 to about $143 billion in fiscal 2026.
- Microsoft outlined new global AI infrastructure commitments, including more than $8 billion planned in the UAE through 2029 with tens of thousands of additional Nvidia chips and a $10 billion data center investment in Portugal.