MSFT ▲ +4.1% - Microsoft Corporation $MSFT Microsoft said fiscal Q1 capital spending fell below guidance because third-party data center capacity deliveries were delayed, despite accelerating AI demand. The company expects Q2 CapEx above $50B and Azure revenue growth of approximately 49%. * Infrastructure: Added 24 data centers across five continents. About 75% of Q1 CapEx went to shorter-lived assets, primarily CPUs and GPUs, with rising memory and storage costs. * AI Chips: Received its first $NVDA Nvidia Vera Rubin GPUs. Microsoft's Maia 200 delivers up to 1.7x more tokens per watt for Teams and Copilot workloads, while Maia 300 targets 40% better efficiency than leading GPU systems. * AI Adoption: Microsoft Foundry surpassed 120,000 customers, with revenue more than tripling YoY. Multi-model agent adoption grew 5x, open-source model revenue rose 10x, and Copilot throughput improved over 50% QoQ. * GitHub Agents: AI agents now initiate over 40% of pull requests, up from 17% in March, with 110M agent-started PRs reported for September. * Q2 Outlook: Agents and Infrastructure revenue projected at $80.1B–$80.7B. Microsoft 365 commercial paid seats grew 5%, with weaker sales execution affecting growth. * Revenue Visibility: Approximately 30% of commercial cloud remaining performance obligations are expected to convert into revenue over the next 12 months. 28-OCT-2026 06:02 PM ET