Microsoft's Rough Quarter

MSFT slid roughly 25% in the first quarter of 2026 while the so‑called Magnificent Seven index fell about 14% over the same period. (finance.yahoo.com (finance.yahoo.com)) Analysts compiled by Bloomberg peg Microsoft’s fiscal‑year‑2026 capital expenditures at about $146 billion, up from roughly $88 billion in fiscal 2025, and the average of estimates projects spending could rise to about $170 billion in 2027 and $191 billion in 2028. (finance.yahoo.com (finance.yahoo.com)) Microsoft reported roughly $37.5 billion in capital expenditures in the quarter ended Dec. 31, 2025, a figure company filings and transcripts attribute largely to AI infrastructure build‑out. (finance.yahoo.com (finance.yahoo.com)) Azure grew about 39% year‑over‑year in the quarter ended Dec. 31, 2025, and Microsoft guided Azure growth to roughly 37%–38% for the following quarter, signaling revenue momentum that some analysts still view as intact despite heavier spending. (microsoft.com (microsoft.com)) Microsoft had previously said its AI business had surpassed an annual revenue run rate near $13 billion in an earlier quarterly disclosure, and recent reporting shows GitHub Copilot had grown to roughly 4.7 million paid subscribers. (microsoft.com (microsoft.com)) (infotechlead.com (infotechlead.com)) Bloomberg data show 63 of 67 analysts tracked maintain buy ratings on MSFT and the average 12‑month price target sits near $592, even as the stock’s forward multiple has compressed to under 20 times earnings—levels last seen in mid‑2016. (bloomberg.com (bloomberg.com)) Market calendars currently list Microsoft’s next quarterly earnings window for April 29, 2026 (after‑market), a key date analysts cite for fresh revenue and capex guidance. (marketbeat.com (marketbeat.com))