$MSFT · Schwab Network · 2026-10-28

Yes, Microsoft releases its results before Alphabet here. Let's dive into its first financial quarter and what we get here. Earnings per share came in at $4.89. The forecast was at $4.73 . So, they exceeded their own profits.

Revenues amounted to 92.28 billion. This is 2 billion better, slightly less than 2 billion better than expectations, which were at 90.63 billion. Their capital spending for the first quarter, $39.37 billion, was less than the expected $ 45.93 billion.

Their operating income was 45.92 billion. The estimates were 43.92.

Azure revenues, we were just talking about how important they are with Caleb Silver. It increased by 48%. Estimates pointed to around 44. The figure circulating behind the scenes was between them.

It's superior no matter what scale you look at. Those revenues came in slightly better than everyone here expected.

So, we have a net profit advantage and a gross revenue advantage. Operating income came in better than expected. Net income rose by 32% on a generally accepted accounting principles basis to 36.6 billion.

Overall cloud revenues totaled 63.9 billion. The estimates were at 61.62. This figure for capital expenditures came in much lower than the estimates, which had anticipated 45.93 billion.

They are making their numbers less than 40. We are at 39.37.

We are seeing a positive reaction towards Microsoft so far. We are up by only 3 and 3 /4% because of these few numbers that came through the wires in early absorption.

But the numbers in all areas here represent a superiority for Microsoft. So, what are your initial impressions here? Well, I think the positive thing we see with this capital expenditure figure, which is probably a different story here, is that it's particularly encouraging because it proves that Microsoft is maintaining exceptional growth from an already huge revenue base, and they are doing that, and now they are cutting capital expenditure on it.

I believe that seeing what we are seeing in cloud revenue reinforces the strength of the infrastructure and cloud business and the demand from these corporate customers. You know, given the overall profit margins here, but as we see the backlog of orders growing strongly, this gives us a clearer view of the future.

I believe again that the reaction here is very positive. The numbers are good, and overall we have seen a decrease in capital spending, because investors were concerned about that.

As long as it doesn't look like a downturn because they don't think they'll achieve that profitability, which isn't the explanation here, I think investors don't mind.

Okay Sam, we were just talking to Caleb about Microsoft. What he was hearing was that people were looking for predictions here. What caught your attention the most? Well, I think this explains why people like Dan Ives believe this is the most important report of the week for the technology sector, because clearly, as he was saying, Azure's superiority with its backlog growth paves the way for Alphabet, which is interesting because it comes just before their report, and also for Amazon, because it confirms the demand side in the capital spending debate ahead of November.

There was a big question about whether this would calm market concerns regarding all the spending we have seen. He says this primarily because it is the most accurate measure of demand for artificial intelligence in organizations.

I mean, Azure is where advanced technology labs and Fortune 500 companies buy their computing capabilities.

We know that the unofficial trading figure, as we mentioned, was around 47-48%, and we know that this is also the figure that moves the stock. So, obviously, this is what we're seeing as a result, Mali.

Well, we see a good upward movement here based on these numbers. We have been rising by approximately 5% steadily since its release.