Microsoft’s Q1 earnings beat estimates with $4.13 per share, up 25.2% YoY. Revenues of $77.6 billion increased 18.4%, driven by strong demand for cloud and AI offerings. Azure bookings surged 112%, and commercial remaining performance obligation hit $392 billion, up 51% YoY.

Microsoft reports 4.13 EPS and 77.6 billion revenues in Q1 2026, beating estimates. Commercial bookings surged 112%, Cloud revenues hit $49.1 billion, and Azure AI services grew 40%. The company plans to increase AI capacity by 80% this year and double data center footprint in two years.

The Intelligent Cloud segment contributed 39.8% to total revenues, reporting $30.89 billion and a 28% growth, driven by Azure. Microsoft expects fiscal Q2 revenues between $79.5 billion and $80.6 billion, with Azure revenue growth of approximately 37%.

Estimates for Microsoft have trended upward in the past month. The stock has a VGM Score of B and a Zacks Rank #3 (Hold). Quantum Computing is the next technological revolution, with Microsoft and other tech giants integrating it into their infrastructure. Check out the top quantum stocks now for potential gains.

Read more at Nasdaq: Microsoft (MSFT) Down 7.7% Since Last Earnings Report: Can It Rebound?