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Microsoft (MSFT) Q1 2026 earnings report
Microsoft CEO Satya Nadella speaks at Axel Springer Neubau in Berlin on Oct. 17, 2023.
Ben Kriemann | Getty Images
Microsoft will report results for its fiscal first quarter after the close of regular trading Wednesday.
Here’s what analysts are expecting according to a consensus of estimates from LSEG:
- Earnings per share: $3.67
- Revenue: $75.33 billion
Cloud continues to be the big driver of growth at Microsoft, as the business has proven to be a major beneficiary of the artificial intelligence boom. Last quarter, Microsoft disclosed the scale of its Azure cloud infrastructure business in dollars for the first time. The company said revenue in fiscal 2025 from Azure and other cloud services jumped 34% from the prior year to more than $75 billion.
Microsoft is expected to report total revenue growth of 15% for the quarter from $65.6 billion a year ago, according to LSEG.
Analysts will be paying close attention to Microsoft’s capital expenditures as the company races to build out the infrastructure necessary to support AI demand.
Microsoft said in July that it expected to spend $30 billion in capex and assets acquired through leases during the quarter, representing annual growth of more than 50%. CFO Amy Hood told investors at the time that capex will grow in fiscal 2026, but it will be a slowdown from 2025.
Following its fiscal fourth-quarter results, which included better-than-expected earnings and revenue, Microsoft’s stock popped 4%. Ahead of Wednesday’s results, analysts at Jefferies, who recommend buying the stock, said they expect Azure to deliver strong upside, and that the company is well positioned even though it’s seasonally the weakest quarter.
In addition to Azure, they said they see momentum from the Microsoft 365 productivity suite driving “robust bookings growth and rising AI contribution.”
TD Cowen analysts, who also have a buy rating, said they expect Microsoft to offer healthy guidance, especially around Azure. The analysts highlighted Microsoft’s ongoing infrastructure projects and said that if the sites all get deployed, they could result in $30 billion to $40 billion in incremental annual revenue for the company.
Much of Microsoft’s AI momentum has been attributed to its tight relationship with OpenAI.
On Tuesday, OpenAI announced it has completed its restructuring and formally outlined Microsoft’s stake in the company. Under the new structure, OpenAI’s nonprofit will hold a 26% stake in its for-profit arm, worth about $130 billion. Microsoft will hold a 27% stake worth about $135 billion, and current and former employees and investors will own the remaining 47%.
Microsoft shares have gained 29% this year, closing at a record $542.07 on Tuesday. The Nasdaq is up 23% in 2025.
Microsoft is scheduled to hold its quarterly call with investors at 5:30 p.m. ET.
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