Microsoft’s first-quarter results exceeded expectations, with revenue up 17% to $77.7 billion and operating margin at 48.9%. Azure saw strong growth, with AI services in high demand. Commercial bookings grew 111%, and Azure growth surpassed guidance at 39%. The stock’s fair value estimate remains at $600 per share.

Second-quarter guidance is in line with estimates, with revenue at $80.05 billion and 45.3% operating margin. Results align with the long-term focus on hybrid cloud, AI, and Azure. Growth estimates center around Azure, Microsoft 365 E5 migration, and traction with the Power Platform. Morningstar’s top pick remains Microsoft.

Read more at Morningstar: Microsoft Earnings: Strong, Including Azure, but Overall Guidance Is In Line