Overview
- Microsoft reported $77.7 billion in fiscal Q1 revenue with commercial cloud at $49.1 billion and Azure up 40% year over year.
- CFO Amy Hood said Azure has been short on capacity and indicated revenue could have been higher, noting Microsoft prioritized compute for first‑party AI products such as Copilot and GitHub.
- Capital expenditures rose to about $34.9 billion with roughly half spent on GPUs and CPUs for AI workloads, and guidance flagged continued capacity constraints and cloud margin pressure.
- An eight‑plus hour Azure disruption was traced to an inadvertent configuration change in Azure Front Door that caused widespread latency and connection errors.
- Microsoft recorded a $3.1 billion accounting charge tied to its OpenAI investment and now reports a 27% stake under new terms that include a $250 billion Azure purchase commitment and the loss of first‑refusal rights as OpenAI’s compute provider.