Microsoft tops quarterly expectations as Azure grows 48% and capex undershoots forecast

Microsoft released its quarterly results after the close on October 28. Market coverage said the company beat expectations: its Azure cloud platform expanded 48%, and capital expenditure came in about $6bn below analysts' projections. The company also filed an 8-K results-of-operations report (Item 2.02) dated October 28, 2026; the available excerpt shows just the cover page, without any financial data.

The release came on a day dominated by the Federal Reserve, which kept rates on hold. Chair Warsh said inflation is still elevated, that current policy is having an effect, and that officials want further data. The Treasury yield curve steepened after the decision.

Big Tech results diverged. Alphabet posted strong cloud revenue but fell short of forecasts for profit, overall sales and a number of advertising metrics, and its stock was said to have dropped close to 10%. Microsoft shares, by contrast, were reported higher in after-hours trading.

Faster cloud growth supports expectations for revenue from cloud services, while lower-than-expected capex suggests the strain of spending on cash flow may be smaller than feared. Together these can support the share price, although after-hours moves do not always hold through the regular session.