By Hyun-Seon, Park
Publication Date: 2026-10-30 04:25:00
Microsoft shares surged more than 5% in after-hours trading after the company reported better-than-expected results for the June-September quarter and issued an outlook that exceeded market forecasts.
On Oct. 28 (local time), Microsoft reported that capital expenditure (CAPEX) for its fiscal first quarter of 2027, ended in September, came in below its own forecast, while revenue from its core Azure cloud business surged 48%, helping generate $18.6 billion in free cash flow (FCF). The figure exceeded analysts’ expectations of $8.54 billion, according to Visible Alpha, by $10.06 billion.
Revenue from Microsoft’s Azure cloud business reached $33.165 billion in the fiscal first quarter of 2027, surpassing the market forecast of $32.84 billion. Total revenue rose 19% year-on-year to $92.28 billion, while adjusted earnings per share (EPS) reached $4.89, well above analysts’ expectations of $4.73.
