Microsoft Q1 FY2027 Earnings Report: Azure Growth Accelerates Amid High AI Capital Expenditure
Microsoft Corporation (MSFT) reported strong Q1 FY2027 results, surpassing Wall Street expectations with total revenue of $92.28 billion, a 19% year-over-year increase, and adjusted earnings per share of $4.89. A primary driver of this performance was the Azure cloud platform, which saw growth accelerate to 48%, exceeding market consensus by 320 basis points. While operating margins expanded to 49.8% due to strong operating leverage, the company's free cash flow (FCF) faced pressure. Despite a 29% rise in operating cash flow to $58 billion, massive investments in AI infrastructure caused capital expenditures to more than double to $39.37 billion, resulting in a 27% decline in FCF to $18.63 billion.
Tickers: $MSFT
Topics: AI infrastructure cloud computing earnings report free cash flow revenue growth
Read the full article at Seeking Alpha
Part of the story MICROSOFT CORP - 8-K Filing (21 articles)