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MSFTearningscloud computingartificial intelligence
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Related tickers and likely impact
MSFT
▲ Likely positiveMicrosoft
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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Microsoft (MSFT) will report first-quarter earnings after the bell on Wednesday, the first report under its new segments, Agents and Infra and Devices and Consumer. Bloomberg analyst consensus expects EPS of $4.27 on revenue of $90.6 billion, versus EPS of $4.13 and revenue of $77.6 billion in the same period last year. Agents and Infra revenue is expected to rise 22.5% to $75.6 billion, with Azure and Microsoft 365 expected to bring in $32.2 billion and $27.4 billion, respectively, while Devices and Consumer sales are projected to fall 6% to $15 billion. Capital expenditures, including leases, are expected to top $45.9 billion, up from $19.3 billion a year earlier, and remaining performance obligations are expected at $705.6 billion, up 77% from $389 billion. Investors will be watching Azure and Copilot growth as Microsoft pushes its AI services.
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Alphabet and Microsoft report quarterly results after the close on Wednesday, October 28, with investors watching whether AI cloud demand justifies heavy infrastructure spending. Zacks expects Alphabet to post Q3 EPS of $2.94, up more than 2%, with revenue excluding traffic acquisition costs rising nearly 28% to $111.8 billion and Google Cloud revenue up 92% to $29.15 billion. Alphabet forecasts annual capital spending of $195-$205 billion. Microsoft is expected to report fiscal first-quarter EPS of $4.71, up 14%, and revenue of $90.58 billion, up more than 16%, with Azure growth guided to 44-45% in constant currency. The article adds that quarterly capital expenditures could exceed $50 billion, and that higher depreciation and AI infrastructure costs could pressure cloud margins.
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