29 Jan 2026

$MSFT with a strong double beat in Q4. The stock is down 6% despite the strong results due to heavy spending.

Microsoft delivered impressive headline numbers, with revenue jumping 17% to $81.3 billion and Azure cloud growth accelerating to 39%, driven by fierce AI demand. The Intelligent Cloud segment is now a massive engine, crossing $32.9 billion in sales. However, capital expenditure nearly doubled to ~$30 billion, raising fears about cash burn. Second, the massive 60% profit jump can be misleading as it includes a $7.6 billion paper gain from the OpenAI investment. Stripping that out, real profit growth was much lower, leaving investors worried that the costs of the AI boom are rising faster than the immediate cash returns. ๐Ÿ”น EPS: $4.14 vs. $3.91 est. โœ… ๐Ÿ”น Revenue: $81.27B vs. $80.31B est. โœ… Key takeaways: ๐Ÿ”ธ Intelligent Cloud rev: +29% YoY ๐Ÿ”ธ Productivity rev: +16% YoY ๐Ÿ”ธ Computing rev: -3% YoY ๐Ÿ”ธ MSFT Cloud rev: +26% YoY ๐Ÿ”ธ Azure/Cloud: +39% YoY Source: KaizenInvestor @Kaizen_Investor Barchart

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