Microsoft beats earnings estimates as Azure growth fuels analyst optimism

Microsoft beat Wall Street expectations in its fiscal first-quarter earnings, reporting adjusted earnings of $4.89 per share and revenue of $92.28 billion, a 19% year-over-year increase. The strong results have led analysts to become more bullish on the stock, which rose about 2% in premarket trading. Azure cloud infrastructure grew 48% in the quarter, and Microsoft guided for 49% to 50% growth in the fiscal second quarter, exceeding the 45.1% consensus estimate. Analysts from firms including JPMorgan, Wells Fargo, and Morgan Stanley raised price targets, citing broad AI adoption and monetization across the company's product stack. The stock has rallied 36% over the past three months amid Microsoft's continued data center buildout to support AI demand. While some analysts noted softness in consumer businesses like Windows OEM and devices, they remain optimistic about enterprise demand for Azure, which continues to exceed supply.