3 6 Ke·2025-10-30 03:32Core Viewpoint - Microsoft reported strong financial results for Q1 FY2026, with significant year-over-year growth in revenue and net income, despite concerns over increased capital expenditures impacting stock performance [1][2]. Financial Performance - Total revenue for Q1 was $77.673 billion, an 18% increase year-over-year [1][4]. - Net income reached $27.747 billion, up 12% year-over-year, with a non-GAAP net income of $30.833 billion, reflecting a 22% increase [1][3]. - Diluted earnings per share were $3.72, a 13% increase year-over-year, with a non-GAAP EPS of $4.13, up 23% [1][3]. Segment Revenue Breakdown - Revenue from the Productivity and Business Processes segment was $33.020 billion, a 17% increase year-over-year [5][6]. - Intelligent Cloud segment revenue was $30.897 billion, growing 28% year-over-year [7]. - More Personal Computing segment revenue was $13.756 billion, a 4% increase year-over-year [5][7]. Cost and Expenditure - Total cost of revenue for Q1 was $24.043 billion, up from $20.099 billion year-over-year [8]. - Research and development expenses were $8.146 billion, compared to $7.544 billion in the previous year [8]. - Capital expenditures increased by 74% year-over-year, with significant investments in AI infrastructure and high-performance chips [12]. Future Outlook - Microsoft expects Q2 revenue to be between $79.5 billion and $80.6 billion, representing a year-over-year growth of 14% to 16% [9][10]. - The company plans to continue increasing investments in AI and cloud services, with a focus on meeting strong market demand [11][12]. Strategic Partnerships - Microsoft has deepened its partnership with OpenAI, securing technology agreements and committing to significant resource procurement [13]. - The restructuring of OpenAI's ownership has positioned Microsoft to benefit from ongoing advancements in AI technology [13].