Microsoft included the cost of its voluntary exit offer for about 60,000 eligible employees in its operating expense guidance of $18.5 to $18.6 billion, while guiding calendar-year capex to approximately $170 billion. Fiscal first-quarter revenue rose 18.8% to $92.28 billion, Azure grew 48%, and commercial remaining performance obligation reached $677 billion, up 73%, with about 30% expected to convert to revenue within 12 months. Non-GAAP EPS was $4.89 versus a $4.72 estimate, operating cash flow rose 29% to $58 billion, and free cash flow was $18.6 billion. The company's filings warn that its cloud and AI investments may not achieve expected returns, while cash and equivalents fell 29.7% to $20.28 billion and Microsoft Cloud gross margin slipped to 66%.
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▲ Likely positiveMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/28/2026 | 530.83 |
| Change that session | -0.09% |
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