Azure Grows 48%, Beating Guidance; Microsoft Exits Nscale Data Center Deals
MSFT sits 59% above its 52-week low of $349.2 on elevated volume (2.2× avg).
Summary
Azure grew 48% in constant currency in fiscal Q1, clearing the 44%-45% guidance Microsoft issued in September. Microsoft also walked away from a multibillion-dollar expansion of its Nscale computing agreement for a Texas data center and withdrew from Nscale's planned Loughton site in England after grid connection delays pushed power availability into the 2030s. Separately, the company raised $25 billion in senior unsecured notes, $23 billion fixed and $2 billion floating, with maturities from 2028 to 2066 and interest payments starting in 2027. The Azure beat supports the AI demand story, while the Nscale exits show Microsoft is willing to drop capacity deals that can't deliver power on schedule. Buybacks are running lighter, $9.7 billion in January-September 2026 versus $10.7 billion a year earlier, with September-quarter repurchases down 26% year over year to $2.9 billion.
At the time of this announcement, MSFT was trading at $554.19 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.1T. The 52-week trading range was $349.20 to $559.15. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.