Microsoft Earnings Beat: Azure Grows 48%, Shares Up Over 5%

Quick Answer: Microsoft reported US$92.3 billion (RM375 billion) in total revenue for the September quarter, above the US$90.6 billion FactSet consensus, and its shares popped more than 5%. Azure grew 48%, but capital expenditure of US$45.2 billion is the number shareholders will track as the company guides to US$170 billion in spending for the year.

Microsoft earnings beat estimates, and the shares popped more than 5% after the report. The tech giant recorded US$92.3 billion (RM375 billion) in total revenue, against the US$90.6 billion FactSet consensus.

Profit exceeded US$36.6 billion, compared with the US$35.1 billion analysts had expected. That is a beat of about US$1.7 billion on revenue and US$1.5 billion on profit.

Why Did Microsoft Earnings Beat Estimates on Azure?

Microsoft earnings driven by Azure cloud technology — Azure cloud growth drove the Microsoft earnings beat in the September quarter.

Azure, the cloud computing division, grew 48% in the September quarter and drove the beat. CEO Satya Nadella said Microsoft is delivering ‘greater capability, choice, control, and cost efficiency for customers across our entire stack’.

Earlier this month, Microsoft launched a Surface Ultra laptop running Nvidia AI chips, priced above US$2,500. The device is part of a push to run more AI on-device and offline, rather than relying solely on remote cloud data centres.

How Big Is Azure Against Google Cloud and AWS?

Azure reached US$33.2 billion in the same period. Google said its cloud revenue doubled to US$30.7 billion, narrowing the gap to US$2.5 billion.

AWS remained the number one cloud provider by revenue in the second quarter, according to Synergy Research Group. Microsoft is number two, followed by Google, which makes the Azure-Google race worth monitoring.

Why Is Microsoft Spending US$45.2 Billion on AI Infrastructure?

Total capital expenditure reached US$45.2 billion, below the US$51 billion FactSet expected for July to September. CFO Amy Hood said about three-quarters went to ‘short-lived assets’ such as memory chips and storage.

Spending on ‘property and equipment’ nearly doubled to US$39 billion from a year earlier. Microsoft added 24 new data centres across the world last quarter.

For the final quarter of 2026, Hood expects capital expenditure of more than US$50 billion. That lifts total spending for the year to US$170 billion.

Will Microsoft Raise Outside Funding for Its AI Build-Out?

Hood said Microsoft will use cash generated by the business and ‘access additional sources of funding when we believe it is attractive to do so’. The wording leaves the form of funding open.

Peers are tapping markets too. Alphabet raised US$85 billion through equity offerings, while Meta plans a US$35 billion stock offering to fund its AI investments.

Why Did Microsoft Offer Buyouts to 60,000 Employees?

The voluntary buyout offer covers about 60,000 employees, roughly a quarter of the workforce. It is the second this year, after seven per cent of the US workforce was given the option to retire early in April.

Headcount fell to 223,000 at the end of June, down from 228,000 at the end of 2025, according to regulatory filings.

Can Malaysian Investors Track Microsoft Shares?

Microsoft is US-listed, so Malaysian investors access the stock through a broker that offers US market access, not through Bursa Malaysia. Our guide to Trading Account Types in Malaysia explains the account setup.

Amazon reports its quarterly earnings today, giving another read on cloud demand.

Key Takeaways

Revenue: US$92.3 billion (RM375 billion), versus the US$90.6 billion FactSet consensus.
Azure grew 48% to US$33.2 billion, US$2.5 billion ahead of Google Cloud’s US$30.7 billion.
Capital expenditure: US$45.2 billion this quarter, with full-year spending guided to US$170 billion.
Headcount: 223,000 at the end of June, after the 60,000-employee buyout offer.
Amazon’s quarterly results land today, the next test of cloud demand.

This article is for general information only and does not constitute investment advice. Do your own research and consult a licensed adviser before making any investment decision.

Frequently Asked Questions

How much revenue did Microsoft report?

Microsoft reported US$92.3 billion (RM375 billion) in total revenue, above the US$90.6 billion FactSet consensus. Profit came in above US$36.6 billion.

How fast did Microsoft Azure grow?

Azure grew 48% in the September quarter and reached US$33.2 billion in revenue for the same period. Google reported US$30.7 billion in cloud revenue.

How much will Microsoft spend on capital expenditure in 2026?

Microsoft expects capital expenditure above US$50 billion in the final quarter of 2026, bringing full-year spending to US$170 billion. Capital expenditure in the September quarter was US$45.2 billion.

How many employees does Microsoft have?

Microsoft had 223,000 employees globally at the end of June, down from 228,000 at the end of 2025. The company offered voluntary buyouts to about 60,000 staff.

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