Microsoft beats forecasts as Azure grows 48%; trims capex outlook

· Tech · United States

Microsoft reported quarterly revenue of $92.3 billion and profit of $36.6 billion, beating Wall Street expectations, as its Azure cloud computing division grew 48%. Shares rose about 4% after hours. The results came days after the company offered voluntary buyouts to some 60,000 employees, about a quarter of its workforce; a CFO memo said Microsoft expects 'very few people' to accept. Chief Financial Officer Amy Hood also cut the capex forecast, citing delays in third-party capacity, as Wall Street scrutinizes returns on AI spending. The strong cloud growth and cash flow offered investors some respite from broader AI spending fears.

Why it matters：Microsoft's cloud growth shows AI demand is translating into revenue, a counterpoint to Alphabet's miss that will shape how investors judge the industry's heavy spending.

Key points

  • Azure revenue grew 48% year over year.
  • The buyout offer covers roughly 60,000 employees, about a quarter of the workforce.
  • Microsoft cut its capex forecast on delays in third-party capacity.

Sources (original reporting)

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