Microsoft shares (MSFT) pared early gains and traded about 1.4% below their opening level, even though fiscal first-quarter 2027 revenue of $92.3 billion rose 19% in constant currency, beating expectations. Azure grew 48% in constant currency, about three percentage points above forecasts, and guidance of 49% to 50% for the current quarter also exceeded a consensus of about 45%. Bank of America reiterated its Buy rating and raised its price target to $630 from $600, but forecasts fiscal 2027 capital expenditure of $222 billion, up 53%, with $125 billion in the second half versus $96 billion in the first as delayed third-party capacity pushes spending later. Operating margin reached 49.8%, while commercial bookings fell 11% in constant currency, and investors are watching whether revenue can keep pace with the rising cost of AI infrastructure.
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MSFT
▼ Likely negativeMicrosoft
Relevance: high
| 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% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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