Microsoft tops estimates as Azure jumps 48% and stock rises 4%
What's new: Free cash flow reached $18.6 billion and second-quarter revenue guidance beat Wall Street forecasts.
Microsoft beat Wall Street expectations for its fiscal first quarter, powered by 48% growth in Azure cloud infrastructure and stronger-than-expected revenue. The company posted adjusted earnings of $4.89 a share on $92.28 billion in revenue for the quarter ended Sept. 30, topping LSEG estimates. Shares gained about 4% in extended trading. Microsoft generated $18.63 billion in free cash flow, while capital expenditures and finance leases of $45.2 billion came in below analyst projections. The company forecast fiscal second-quarter revenue of $96 billion to $97.1 billion, also above expectations, as demand for AI-related cloud capacity continued to outstrip supply.