Microsoft Sees Azure Growth Accelerating Further in 2Q
By Elias Schisgall
Microsoft expects growth in its Azure cloud business to accelerate further in the fiscal second quarter, after reporting accelerated growth in the first quarter that exceeded its own guidance.
The technology company said Azure is expected to grow between 49% and 50% in constant currency in the second quarter. The business logged 48% growth in the first quarter, helping fuel a 3.8% after-hours jump in Microsoft's stock to $551.40.
Microsoft projected overall revenue growing to between $96 billion and $97.1 billion in the second quarter. Analysts polled by FactSet currently expect revenue of $95.63 billion.
That projection includes $80.1 billion to $80.7 billion in revenue from Microsoft's Agents and Infra segment, which covers both Azure and the Microsoft 365 business. Devices and Consumer revenue is projected between $15.9 billion and $16.4 billion.
Microsoft also projected more than $50 billion in capital expenditures during the second quarter, underscoring the heavy costs of the artificial-intelligence infrastructure buildout.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
October 28, 2026 18:37 ET (22:37 GMT)
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