Microsoft reported fiscal Q1 revenue of $92.3 billion, up 19% year over year, and adjusted EPS of $4.89, up 18%, both above the LSEG analyst consensus. Azure revenue rose 48% to $33.17 billion, and remaining performance obligations surged 73% to $677 billion, while bookings fell 12%. Microsoft 365 cloud revenue grew 17% to $27.8 billion, led by Copilot, whose customers rose eightfold to over 50,000 seats. Free cash flow was $18.6 billion after $45.2 billion in capex, about 75% of which went to short-lived assets such as GPUs and CPUs. For fiscal Q2, Microsoft guided revenue to $96 billion to $97.1 billion and expects capex of over $50 billion, with $170 billion for the full year; citing a forward P/E of 22 times, the author views the stock as attractively valued with solid upside.
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MSFT
▲ Likely positiveMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/30/2026 | 521.90 |
| Change that session | -1.55% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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