Microsoft stock lost 2.8% including dividends in the year to October 30, 2026, while the S&P 500 returned 11.3%, even though fiscal Q1 2027 revenue rose 18.8%. Commercial backlog grew 73% year on year to $677 billion, and management said customer demand continues to exceed available supply, though commercial bookings fell 12% after large Azure commitments in the prior year. Azure revenue grew 48% and Microsoft Cloud revenue reached $63.9 billion, up 30%, with about 30% of the backlog, roughly $203 billion, expected to be recognised within 12 months. Capacity constraints remain a risk, as some third-party capacity was delayed, capital spending reached $45.2 billion and free cash flow fell to $18.6 billion from $25.7 billion. The article says the next test is Azure growth in constant currency against management's 49% to 50% guidance for fiscal Q2 2027, to be reported in January 2027.
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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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