Microsoft Q1 Revenue Hits $92.3B, Azure Up 48% as Capex Jumps to $39.4B With $175B FY27 Guide

Microsoft reported fiscal Q1 2027 revenue of $92.3B, up 19% YoY, with Azure growing 48% and Microsoft Cloud revenue reaching $63.9B (up 30%). Capex nearly doubled to $39.4B, below the $50B the market expected, and free cash flow landed at $18.6B. Management guided calendar 2026 capex to about $175B after a finance-to-operating lease reclassification, keeping AI infrastructure the central narrative.