US Stock Market Movement: Microsoft Surges on October 29th as Earnings Beat Expectations, Azure Grows by 48%, and AI Demand Increases

Microsoft October 29 Surge Interpretation

Keywords: Earnings Beat Expectations, Azure Up 48%, AI Demand

1. On October 28, Microsoft announced its fiscal year 2027 Q1 results: revenue reached $92.3 billion, up 19% year-on-year; adjusted earnings per share were $4.89, higher than the expected $4.73; GAAP net profit was $36.6 billion, an increase of 32% year-on-year; Azure revenue was $33.17 billion, up 48% year-on-year and exceeding expectations; Microsoft Cloud revenue was $63.9 billion, up 30% year-on-year.

2. On October 28, the company’s earnings call projected Azure revenue growth of 49%-50% for Q2, higher than the market expectation of 47.6%; overall sales are expected to reach between $96 billion and $97.1 billion, above the expected $95.6 billion, and noted that AI demand continues to exceed available supply.

3. On October 28, Q1 free cash flow was $18.6 billion, about $10 billion above analyst expectations; capital expenditure was $45.2 billion, lower than the company’s projected $50 billion, mainly due to delays in some third-party capacity deliveries. The CFO expects Q2 capital expenditure to exceed $50 billion, and full-year expenditure to be about $170 billion.

(Disclaimer: This content is generated by AI technology summarizing publicly available information, for reference only and does not constitute investment advice.)