ASX 200 Climbs 0.4% at Midday as Fed Holds Rates, Microsoft Results Ease AI Fears and Star Shares Jump on Fine

Microsoft reported $45.2B in Q1 capital expenditures, with 75% spent on CPUs, GPUs, and data centers. Azure revenue growth is expected to be 49-50% in Q2, while total revenue is forecasted at $96B-$97.1B. Devices and Consumer revenue fell 3%, and Xbox revenue declined 2%. Microsoft plans to increase capital spending to $50B in Q2 and $170B for the year.

Microsoft's Q1 capital expenditure of $45.2 billion was below estimates due to delays in third-party cloud capacity. Neocloud stocks like CoreWeave, Nebius, Iren, and Applied Digital fell. Microsoft expects higher CapEx in Q2 and a total of $170 billion for the year. Alphabet also reported lower-than-expected CapEx. Iren raised $363 million through debt financing.

Microsoft reported $92.3B in Q1 2027 revenue, up 19%, with Azure revenue growing 48% to $33.2B. Operating cash flow rose 32% to $45.1B, while capital expenditures increased 30% to $45.2B. CFO Amy Hood pledged positive free cash flow for fiscal 2027.

Microsoft reported record Q1 revenue of $92.3B, up 19% YoY, driven by strong cloud demand. The company restructured its financial reporting into two segments. Despite offering buyouts to 60,000 employees, it expects cost savings. Capital expenditures rose to $45.2B, with most spent on AI. Free cash flow declined to $18.6B but remained positive, unlike peers.

Microsoft reported Q3 2026 revenue of $92.3B, up 19% YoY, with $10B from OpenAI partnerships, including cloud services and revenue-sharing. OpenAI's receivables rose to $7.2B. Microsoft's net income increased 32% to $36.6B, while cloud revenue grew 30% to $63.9B. The company also offered voluntary retirement programs.

Microsoft reported 1QFY27 revenue of $92.3B, up 19% YoY, driven by strong cloud and AI growth, particularly in Copilot and Azure, according to the company.