Microsoft (MSFT) Beats Q1 Estimates as Azure’s AI-Driven Cloud Growth Surges Past Expectations

Core Insights - Microsoft Corporation (NASDAQ:MSFT) reported better-than-expected fiscal first-quarter earnings, driven by strong performance in its cloud sector, particularly Azure, which saw robust AI-driven demand [1][2] - The company's Q1 earnings per share were $4.13 on revenue of $77.67 billion, exceeding forecasts of $3.66 per share and $75.32 billion [2] - Despite strong Q1 results, Microsoft projected second-quarter revenue between $79.5 billion and $80.6 billion, slightly below the consensus estimate of $79.7 billion [3] Financial Performance - Q1 earnings per share: $4.13, exceeding expectations of $3.66 [2] - Q1 revenue: $77.67 billion, surpassing forecasts of $75.32 billion [2] - Azure revenue growth: 40% year-over-year, exceeding analyst projections of approximately 38% [2][3] - Productivity and Business Processes division revenue: $33 billion, above the estimate of $32.33 billion [3] Future Projections - Expected second-quarter revenue: $79.5 billion to $80.6 billion, compared to the consensus of $79.7 billion [3] - Anticipated Azure revenue growth on a constant currency basis: 37% for the upcoming quarter [3]