Overview
- Microsoft reported $77.7 billion in revenue and $4.13 adjusted EPS for fiscal Q1 2026, beating LSEG estimates.
- Azure revenue grew about 40% year over year, marking a ninth consecutive quarter above 30% growth.
- The cloud backlog reached $392 billion, up 51% from a year ago, including a new $250 billion Azure commitment from OpenAI.
- Capital expenditures were nearly $35 billion in the quarter, and CFO Amy Hood said fiscal 2026 capex growth will exceed fiscal 2025 with priority on GPUs and CPUs.
- Management guided next-quarter revenue to $79.5 billion to $80.6 billion, roughly aligning with analyst expectations.