Microsoft Guides $90B Q1 Revenue, 45% Azure Growth; Capex Plan Eases Fears
MSFT sits 22% above its 52-week low of $349.2.
Summary
Microsoft's Q4 beat on revenue ($90B vs. $87.6B expected) and EPS ($4.74) is overshadowed by robust forward guidance: Q1 revenue seen at $89.85B-$90.95B (16% growth) and Azure growth accelerating to 45%. The capex outlook is the real story—management now expects ~$175B in capex and finance leases for 2026, but a shift to operating leases and extended asset lives signals spending discipline that calms investor nerves. Free cash flow fell 23% to $19.6B, yet CFO Hood projects positive FCF in FY27. An Anthropic investment gain of $3.2B and a 8% sequential jump in commercial remaining performance obligations to $678B underscore enterprise momentum. Shares surged 8.9% pre-market, adding to post-earnings gains as the capex narrative shifts from fear to controlled investment.
At the time of this announcement, MSFT was trading at $425.75 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.9T. The 52-week trading range was $349.20 to $555.45. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: ShareCast.