Microsoft shares barely moved, slipping 0.2% to about US$530, despite Q1 fiscal 2027 results showing revenue of US$92.3b and basic EPS of US$4.93, both up sharply year on year. Cloud revenue reached US$63.9b, up 30%, while Azure grew 48%. Microsoft is pouring US$170B into AI buildout, with quarterly capex of US$31.9b, over two-thirds going into short-lived CPUs and GPUs. Bullish observers argue the spending will lift revenue and support margins, while bearish investors worry the AI build will become a margin drag rather than an earnings engine. The stock trades at a 27.6x P/E.
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Related tickers and likely impact
MSFT
• NeutralMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/29/2026 | 530.43 |
| Change that session | -0.11% |
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/29/2026 | 213.72 |
| Change that session | -0.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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