Microsoft Corp (MSFT) reported a 33% increase in free cash flow for Q1 ending Sept. 30, with a strong 33.3% FCF margin after AI capex. Stock price at $513.58 on Nov. 4, down from $542.07 on Oct. 28 but up from $495.00 on Sep. 5.

Microsoft’s Q1 2026 revenue rose 18% YoY to $77.7 billion, with FCF up 33.3% to $25.663 billion. Capex spending increased by 30% over the past year as the company continues to invest in AI and cloud computing. FCF margin was strong at 33.04%.

Analysts project Microsoft could hit a $5 trillion market cap with a 30% increase in FCF to $101.62 billion. This implies a 30% rise in stock price to $682.55 per share. Shorting out-of-the-money put options offers an attractive way to play the stock.

Read more at Barchart: Microsoft Produces Strong FCF As Expected