Microsoft has guided Azure to 45% growth. Will its earnings top $4.72 a share when it reports Oct 28?
80% of users predicted YES — the community got this one right. 10 predictions cast.
Microsoft reported fiscal first-quarter 2027 results on Oct. 28, 2026, posting non-GAAP earnings of $4.89 per share, above the roughly $4.71 consensus estimate and the $4.72 threshold this question tracked. Revenue rose 19% year over year to about $92.3 billion, while net income climbed 32% to $36.6 billion.
The beat was driven by Azure, which grew 48% in constant currency, outpacing both Microsoft's own 44-45% guidance and Wall Street's forecast. Azure revenue, broken out in dollar terms for the first time, reached $33.17 billion for the quarter. Microsoft Cloud revenue overall rose 30% to $63.9 billion. Shares rose about 4% in after-hours trading following the report.
Management guided for continued strength, projecting 49-50% Azure growth next quarter, while flagging that heavy AI infrastructure spending, roughly $45 billion in capital expenditures for the quarter, would compress cloud gross margins to about 65%. Free cash flow fell 27% to $18.63 billion.
The community predicted this correctly: 80% of forecasters expected Microsoft to top $4.72 a share, in line with the actual beat.