Microsoft Needs Azure to Keep Growing Faster Than 40% When It Reports on Oct. 28

Microsoft shares trade near $533, less than 2% below the record close of $542.07 on Oct. 28, 2025, after falling more than a third to about $353 in June. The rebound was driven largely by the July earnings report, when Azure revenue rose 43% year over year. Across the last four reports, the next-day stock move has tracked Azure growth: 39–40% growth led to drops of 3% to 10%, while 43% growth lifted shares about 16%. Management guided Azure growth of 44% to 45% for the quarter ending in September, implying around $32 billion in revenue, while capital expenditures are guided above $50 billion and Microsoft Cloud's gross margin has slid from 68% to 65%. The author argues Microsoft needs Azure to land near its guidance without further margin erosion, and believes the shares are priced about right heading into the report.

Summary written by Upside AI from the original article. Read the source for full details.

Read the original on Yahoo Finance ↗

All news →