[FLASH] Microsoft beats as Azure grows 48% to $33.2B; guides Azure to 49-50% and keeps free cash flow positive
In fiscal Q1 2027, Microsoft reported revenue of $92.28B, up 19%, and adjusted EPS of $4.89, both above estimates. Azure, disclosed in dollars for the first time, grew 48% to $33.17B. Capex including finance leases was $45.2B, and free cash flow fell 27% to $18.63B but stayed positive. Reuters described this as a widening financial gap among AI spenders, as rivals turn to capital markets. Q2 guidance calls for 49-50% Azure growth in constant currency, with CFO Amy Hood saying demand still exceeds supply. Shares rose about 3-5% after hours, depending on the report. Hood also said debt markets remain an option, which is the point to watch.