- Azure growth accelerated in F1Q.
Morgan Stanley says Microsoft's F1Q Azure acceleration came with strong underlying economics. Gross margins of 67.8% beat estimates by 60 bps. Operating margins near 50% despite high AI investment. The firm views the quarter as validation that AI investments can drive high-teens revenue growth and >20% earnings growth. Microsoft shares fell 1.1% on the day.
One free account opens every story complete, the live board, the 30-day calendar, a watchlist and breaking alerts on your phone. No card. The wire stays free to read.