By Brian Boyle
Publication Date: 2026-10-29 04:01:00
Microsoft has a message to Wall Street: Rest Azure-d, our AI plans are paying off.
Amid an earnings season full of hard-to-swallow AI buildout plans, the Windows-maker’s after-the-bell first-quarter earnings report on Wednesday contained three data points that should make its own massive spend go down easier for investors. First, a smoking 48% year-over-year revenue growth for its Azure cloud computing division, proving existing and growing AI demand. Second, a lower capex than expected, to the total of “only” $45 billion. And third: a free cash flow figure that came in at $18.6 billion, more than double what most analysts were expecting and standing in stark contrast to rivals such as Alphabet and Meta that have seen their free cash flow slip negative amid the AI build-out. So what was everyone so nervous about again?
The New Two
In its new fiscal year, the company said it is changing up how it organizes its earnings reports, splitting the company into just two…
