Microsoft (MSFT) Q1 2026 Earnings: Azure Hits 40% Growth as AI Factory Capex Tops $35 Billion

Microsoft Corp (NASDAQ: MSFT) kicked off its fiscal year 2026 with a power-forward performance that redefined the scale of the enterprise cloud era. Reporting results on the heels of a massive tech rally, the Redmond giant delivered a clean sweep of beats, headlined by a re-acceleration in Azure growth to 40% and a record-breaking $34.9 billion quarterly capital expenditure, a figure that mirrors the annual spending of most Fortune 100 companies.