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Microsoft (MSFT) reported fiscal first-quarter revenue of $92.3 billion, up 19%, with Azure revenue up 48% to $33.2 billion.
Capital expenditures including finance leases were $45.2 billion, below analyst projections, as some third-party capacity deliveries were delayed, according to CFO Amy Hood.
CoreWeave fell 5.8% and Nebius 6.3% in overnight trading, with investors reading the shortfall as a slower capacity ramp for neocloud firms, per Stocktwits.
Gotrade News - Microsoft (MSFT) beat Wall Street estimates for its fiscal first quarter on Wednesday, October 28, as Azure revenue grew 48%, but capital spending of $45.2 billion came in below forecasts. Shares rose after hours, while CoreWeave (CRWV) and Nebius (NBIS) fell after Microsoft said some third-party capacity deliveries were delayed.
According to Stocktwits, Alphabet's third-quarter capex of $51.36 billion also came in below analyst expectations of $55.09 billion, and investors read the Microsoft and Alphabet results as signs of a slower capacity ramp at neocloud firms.
Regular-session close on October 28, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. 52-week range: Yahoo Finance daily highs and lows since October 29, 2025.
Microsoft (MSFT): Azure Revenue Grows 48% to $33.2 Billion
According to Microsoft's official earnings release, revenue rose 19% to $92.3 billion for the quarter ended September 30, 2026, operating income increased 21% to $45.9 billion, and non-GAAP diluted earnings per share rose 18% to $4.89. Microsoft Cloud revenue grew 30% to $63.9 billion, while Azure revenue reached $33.2 billion, up 48%.
As reported by SiliconANGLE, the earnings report topped Wall Street forecasts of $4.73 per share and $90.69 billion in revenue. It was also the first time Microsoft disclosed Azure revenue in exact dollar terms, and the $33.17 billion figure came in ahead of analyst forecasts of $32.32 billion.
Microsoft now reports two segments instead of three. Agents and Infra revenue rose 25% to $76.8 billion, while Devices and Consumer slipped 3% to $15.5 billion, per the company's release. SiliconANGLE reported that devices and Windows license sales fell 22%, and CEO Satya Nadella attributed weak PC demand to higher prices from rising memory and storage costs.
Capital expenditures including finance leases were $45.2 billion, up about 30% from a year earlier, against analyst projections of up to $50.67 billion, according to SiliconANGLE. Free cash flow fell 27% to $18.63 billion in the quarter, the outlet added.
"Capital expenditures were $45.2 billion as some third-party capacity deliveries we expected in Q1 were delayed," Microsoft CFO Amy Hood said on the earnings call, as reported by Stocktwits.
Hood said she expects second-quarter capex to exceed $50 billion and calendar-year spending to come in at about $170 billion, reflecting those delays, per Stocktwits. On Azure, she said, "We still have demand that exceeds supply," according to SiliconANGLE.
For the fiscal second quarter, Microsoft guided revenue to a range of $96 billion to $97.1 billion and Azure growth of 49% to 50% in constant currency, compared with Street forecasts of $95.6 billion and 45.1%, SiliconANGLE reported. Microsoft shares rose about 4% in after-hours trading following the release, the outlet said.
CoreWeave (CRWV): Shares Fall 5.8% After Microsoft Capex Shortfall
CoreWeave shares fell 5.8% in overnight trading late Wednesday, according to Stocktwits, which described Microsoft as a major CoreWeave customer. Per the outlet, Microsoft relies on third-party cloud providers to meet demand beyond its own capacity.
The decline extended a sharp recent selloff driven by concerns over the sustainability of neocloud business models, Stocktwits reported. Other neocloud stocks also slid in the same session, with IREN down 5.3% and Applied Digital down 4.3%.
Nebius (NBIS): Shares Drop 6.3% on Delayed Third-Party Capacity
Nebius fell 6.3% in overnight trading late Wednesday, as reported by Stocktwits. Microsoft signed a deal with Nebius last year reportedly worth up to $19.4 billion for compute through the 2030s, according to the outlet.
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M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
