Overview
- Shares fell roughly 10%–11% in the first session after the report, the steepest one‑day drop since March 2020.
- Azure revenue grew 38% in constant currency with guidance of 37%–38% for the current quarter, short of the Street’s higher “whisper” hopes.
- Capital expenditures jumped to $37.5 billion, up about 65%–66% year over year as Microsoft builds AI data‑center capacity.
- Remaining performance obligations total about $625 billion, with roughly 45% tied to OpenAI (about $281 billion), highlighting concentration risk.
- Microsoft’s outlook for its Windows and Devices unit came in more than $1 billion below analyst expectations, adding to the disappointment.