Microsoft Azure Revenue Jumps 48% in Fiscal First Quarter

Microsoft reported fiscal first-quarter revenue of $92.3 billion, up 19% from a year earlier, as Azure revenue rose 48% to $33.17 billion, exceeding analyst expectations. The results, released Wednesday, October 28, also showed free cash flow above forecasts, while capital spending came in below the company’s projection after delayed capacity deliveries, Microsoft said. Net income was $36.6 billion. Azure revenue for the July-to-September quarter topped Visible Alpha’s estimate of $32.84 billion and increased from $29.4 billion in the prior quarter. Microsoft’s disclosure of Azure revenue in dollars gives investors a direct measure of the business, which the company had previously reported mainly through growth rates. Capital expenditure was $45.2 billion, up from $34.9 billion a year earlier but below Microsoft’s $50 billion projection for the quarter. Jonathan Neilson, the company’s vice president of investor relations, attributed the difference to delays in third-party capacity deliveries, rather than a change in spending plans. The company did not provide a new delivery timetable in the reported results. Microsoft reported free cash flow of $18.6 billion, compared with...