Microsoft CEO Satya Nadella spoke at Axel Springer Neubau in Berlin. The company will report fiscal first-quarter results after market close. Analysts expect earnings per share of $3.67 and revenue of $75.33 billion. Last quarter, Microsoft’s cloud revenue jumped 34% to over $75 billion. Total revenue growth is expected to be 15% from last year’s $65.6 billion.

Analysts are watching Microsoft’s capital expenditures as the company expands to support AI demand. Microsoft spent $30 billion in capex last quarter, with CFO Amy Hood stating it will grow in fiscal 2026 but at a slower rate. Following strong Q4 results, analysts expect Azure to perform well in the weakest quarter.

Microsoft’s AI success is tied to its partnership with OpenAI. OpenAI completed restructuring, with Microsoft holding a 27% stake worth $135 billion in the for-profit arm. Microsoft shares are up 29% this year, closing at a record $542.07. The company will hold a quarterly call with investors at 5:30 p.m. ET.

Jefferies analysts anticipate strong Azure performance and recommend buying Microsoft stock. TD Cowen analysts expect healthy guidance, especially around Azure, with infrastructure projects potentially leading to $30-40 billion in extra annual revenue. Microsoft’s momentum is also driven by the Microsoft 365 suite and AI contributions.

Read more at CNBC: Microsoft (MSFT) Q1 2026 earnings report