Microsoft beats Q1 FY27 estimates as Azure grows 48%, shares jump 4% after hours
What happened
Microsoft reported fiscal Q1 2027 results after the close on Wednesday, October 28, beating expectations on every headline metric. Revenue rose 19% year over year to $92.28 billion, ahead of the $90.62 billion consensus, and adjusted EPS came in at $4.89 versus $4.71 expected; GAAP net income rose 32% to $36.63 billion ($4.92 per share). Azure revenue grew 48%, beating the ~44-45% constant-currency guidance and the ~44.3% Street expectation, with Azure revenue of $33.2 billion and Microsoft Cloud revenue up 30% to $63.9 billion. Capital expenditures of $45.2 billion (including finance leases; $39.4 billion cash capex) came in below the roughly $51 billion analysts expected, and free cash flow of $18.6 billion, though down 27% year over year, beat the ~$8 billion Wall Street expected. Shares jumped about 4% in after-hours trading to around $552, after closing roughly flat at $531.01.
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Start your free 14-day trialWho’s affected
- Microsoft (MSFT) — direct beneficiary, shares +4% after hours. AI infrastructure and chip stocks (NVDA, AMD, Broadcom, memory names) — mixed read-through: the Azure beat validates AI demand, but lower-than-expected capex briefly weighed on chip stocks in late trading. Alphabet (GOOGL) and Amazon (AMZN) — cloud peers reporting in the same window
- Microsoft's print sets the benchmark. PC-exposed names — Windows OEM weakness and memory-price pressure are a headwind.