Overview
- Microsoft posted Q1 fiscal 2026 revenue of about $77.7 billion with earnings of $4.13 per share as Azure grew roughly 40% year over year on AI demand.
- The company guided Q2 revenue to $79.5 billion to $80.6 billion, roughly in line with or slightly below consensus, which contributed to a post‑earnings pullback.
- Microsoft announced a $10 billion AI build in Sines, Portugal, planning 12,600 next‑generation Nvidia GPUs with partners Start Campus, Nscale and Nvidia.
- The company detailed plans to invest over $8 billion in the United Arab Emirates through 2029 to expand data centers and high‑performance computing capacity.
- Ecosystem moves include a reported additional $3.1 billion equity stake in OpenAI and a Pantone partnership building Azure OpenAI‑powered design tools, as Baird initiated coverage at Outperform with a $600 price target.