Microsoft Q1 earnings top Wall Street estimates

Financial Performance - Microsoft's Q1 revenue reached $77.67 billion, exceeding the street's expectation of approximately $75.55 billion [1] - Q1 Azure and other cloud revenue experienced a growth of 39% [1][5] - Intelligent cloud overall revenue for Q1 was $30.9 billion, surpassing the street's estimate of $30.18 billion [1] - First quarter capital expenditures, including leases, amounted to $34.9 billion, an increase from $24 billion in the previous quarter [8] Market Dynamics and Investment - Analysts cited stronger enterprise tone and accelerating AI infrastructure demand from partners like OpenAI [4] - Microsoft holds a 27% stake in OpenAI's new for-profit public benefit corporation, valued at roughly $135 billion [4][16] - The market is described as fickle, with Microsoft's stock potentially reacting to expectations not being fully met despite strong performance [9][10] - AI contribution to Azure's growth is estimated to be in the low to mid-teens as a percentage of the total Azure business [13] Future Outlook and Guidance - Investors are awaiting forward-looking guidance from CFO Amy Hood on the earnings call [6][7] - AI is expected to be a bigger contributor to Azure's growth, with workloads shifting from training to inferencing and reasoning [15] - Microsoft having rights to AGI even post AGI until 2032 and research rights until 2030 or AGI whichever comes first [17]