- Microsoft beat fiscal Q4 2026 expectations: revenue rose 18% to $90B, adjusted EPS was $4.81, and Azure grew 43% as the cloud business surpassed $100B in FY26.
- Microsoft guided fiscal Q1 2027 revenue midpoint to $90.4B and Azure constant-currency growth of 45%, both above analyst estimates.
- Microsoft lowered its calendar 2026 capex forecast to about $175B from roughly $190B after extending the useful life of data centers and office buildings to 25 years from 15; CFO Amy Hood said underlying investment plans are unchanged.
- CFO Amy Hood dismissed the AI overcapacity narrative, saying Microsoft can slow server purchases and stagger data-center buildouts if cloud demand changes.
- MSFT stock rose 7% in overnight trading; Stocktwits sentiment flipped to extremely bullish from neutral, while the shares were down 19% year to date at the last close.
Quotes
“If the demand environment changes, you just slow down what is, in fact, the largest component, right, and the driver of COGS (cost of goods sold)”
“The investment into land and data center builds is actually quite flexible, right? It's a smaller percentage of the overall cost structure. And [the] timing can be changed on much of that, especially on the build, or you can stagger the timing of the build-out of, as I was saying, some of the GPUs and CPUs that you plan to put in.”