Microsoft (MSFT)

Analysis and information

What it does

Microsoft offers the Azure cloud, Microsoft 365 and Copilot workplace software, Windows, LinkedIn, GitHub and Xbox. From fiscal 2027 it reports two segments: Agents and Infra, and Devices and Consumer. Its fiscal year ends on June 30.

Role in the theme

In Platforms and software, Microsoft rents AI computing through Azure and spends heavily on data centers, including capacity contracted from outside providers.

Latest

• 2026-10-28: Revenue for the quarter to September rose 19% to $92.3 billion. Operating income rose 21% to $45.9 billion.
• 2026-10-28: Azure revenue grew 48%. Microsoft Cloud revenue rose 30% to $63.9 billion. Commercial remaining performance obligation was $677 billion, up 73%.
• 2026-10-28: Agents and Infra revenue rose 25% to $76.8 billion. Devices and Consumer revenue fell 3% to $15.5 billion.
• 2026-10-28, on the earnings call: the CFO put capital spending, including finance leases, at $45.2 billion and said "some third-party capacity deliveries we expected in Q1 were delayed" (call transcript; the results release reports cash additions to property and equipment of $39.4 billion).
• 2026-10-28: For the December quarter, Microsoft guided Azure growth of 49-50% in constant currency. It said this helps offset some third-party GPU-as-a-Service contracts delayed to the second half of the fiscal year.
• 2026-10-28: The CFO expects capital spending of over $50 billion in the December quarter and about $170 billion for the calendar year. "Customer demand continues to exceed available supply," she said.

What to watch

• When the delayed third-party GPU contracts start. Microsoft's fiscal second half runs from January to June 2027.
• Azure growth against the 49-50% guidance.
• Capital spending against the guidance of over $50 billion for the December quarter.
• Next report: fiscal Q2 2027 results, date not confirmed.