MSFT ▲ +4.1% - Microsoft Corporation $MSFT Microsoft guided fiscal Q2 revenue to $96B–$97.1B (Est. $95.62B), up 18%–19% YoY, while projecting Azure growth of 49%–50% in constant currency, above the 44.6% estimate. * CapEx Outlook: Lowered calendar 2026 spending expectations to approximately $170B from $175B as delayed third-party capacity deliveries shifted into H2 FY2027, when spending is expected to accelerate alongside CPU, GPU, memory and storage investment. * Cash Flow & Funding: Expects to remain free cash flow positive in FY2027 and may access external capital when terms are attractive. * Q2 Profitability: Microsoft Cloud gross margin projected near 65%, down YoY due to a greater Azure mix. Operating margin expected to decline slightly, with cost of revenue at $32.7B–$32.9B and operating expenses at $18.5B–$18.6B, including voluntary exit costs. * Enterprise Outlook: Agents and Infrastructure revenue expected to grow 24%–25%. Microsoft 365 Commercial Cloud projected to grow approximately 19% in constant currency, with less than a 1-point FX headwind. Commercial bookings face difficult comparisons against large Azure commitments signed last year. * Other Businesses: Devices and Consumer revenue guided to $15.9B–$16.4B. Windows OEM and Devices expected to decline in the mid-30% range, while Search advertising grows low double digits and Xbox content and services grows mid- to high-single digits. Microsoft 365 Consumer Cloud growth is expected in the low teens, slowing sequentially. * Additional Guidance: Productivity and server licensing expected to decline mid- to high-single digits; Industry Solutions Cloud to grow mid- to high-single digits; and Frontier and Support Services to grow low- to mid-single digits. Other expense projected near $300M, excluding OpenAI effects, with an effective tax rate of approximately 20%. 28-OCT-2026 06:13 PM ET