Microsoft (MSFT) Guides Azure Growth of 44% to 45% Ahead of Wednesday Report

Microsoft Sets a 45% Azure Growth Bar

Microsoft (MSFT) reports first-quarter fiscal 2027 results after the market close on Wednesday, October 28, and the company's own guidance sets the bar: Azure expansion of 44% to 45% measured in constant currency, with quarterly capex above $50 billion. The quarter covers July through September, the first full period under the company's new reporting setup. Consensus estimates put earnings per share at $4.71, versus $4.13 a year earlier, and revenue at $90.63 billion, up from $77.67 billion. Both prints land hours after the Federal Reserve announces its interest rate decision at 2 p.m. Eastern Time.

The restructure matters for how the number reads. In September, Microsoft moved to a two-segment structure and restated Azure as a standalone revenue line in an exhibit filed with the SEC. On restated figures, Azure revenue reached $29.42 billion in the June quarter, a 42% increase, which sits below the 44% to 45% guided for the current period. Azure's first quarter as a separately disclosed revenue line gives investors a cleaner read on the business, which previously sat inside a broader segment, and the guidance marks the first test of whether the segment's growth has accelerated since the change. Reaction history cuts both ways. Per-share earnings of $4.74 came in above the $4.21 estimate in July, and the stock rose 15.0% after that release, ending a stretch in which shares fell following three straight reports even though all three beat forecasts. Goldman Sachs analyst Gabriela Borges said Microsoft has greater control over the variables in its capital spending plans, which gives it flexibility, and she expects investors to weigh Azure's unit economics and return on invested capital. The stock finished Friday's session at $524.51, up 8.5% in 2026 so far.

Alphabet and Amazon Report After Microsoft

Alphabet (GOOGL) reports later that evening, with its earnings call set for 4:30 p.m. ET. Analysts look for earnings per share of $2.94, barely above the $2.87 posted a year earlier, and revenue of $127.92 billion, up from $102.35 billion. The tame estimate follows an unusual July release: per-share profit of $9.11, more than three times the $2.88 forecast, and the stock still fell 7.1% afterward. That quarter's revenue rose 24.2% to $119.8 billion, with Google Cloud revenue up 82% to $24.8 billion, while capex of $44.9 billion drove free cash flow to minus $5.9 billion. In July, Alphabet lifted its 2026 capital spending guidance to a range of $195 billion to $205 billion. Goldman Sachs analyst Eric Sheridan said investor concern has centered on Search revenue growth and on the fact that no formal consumer AI agent has launched so far, though he keeps the stock on the firm's buy list. The stock ended Friday at $320.21, a 2.3% gain for 2026 to date, the smallest of the three.

Amazon (AMZN) closes the week on Thursday, October 29, also reporting after the close. Consensus calls for earnings per share of $2.01, versus $1.95 a year ago, and revenue of $202.16 billion, up from $180.17 billion, just above the company's own guidance range of $197 billion to $202 billion. AWS grew 37% to $42.2 billion last quarter, its fastest pace since late 2021, and consensus for the current quarter stands near 38%, with some analysts expecting 43% to 45%. Amazon raised its 2026 capital spending forecast to about $220 billion from $200 billion and spent $54.2 billion in the second quarter, compared with $32.1 billion a year prior. Chief Executive Andy Jassy said the amount still falls short of the capacity needed to meet this year's demand. The spending left free cash flow over the past 12 months at minus $7.6 billion, and a July bond sale worth $25 billion is partly funding the AI outlays. July's GAAP earnings per share of $5.75 included $53.4 billion of pre-tax income, mostly tied to the company's stake in Anthropic, so headline profit can swing on investment gains. The stock ended Friday at $248.00, up 7.4% in 2026, after a 15.3% jump following the July report. Moody's estimates sector capital spending could reach $785 billion in 2026 and near $1 trillion in 2027, with hyperscaler debt issuance running near $175 billion this year against a $30 billion five-year average.

MSFT Presses $524.97 Resistance

Microsoft trades at $525.27 on Monday, up 0.13% over 24 hours, according to COINOTAG data, holding just above the $524.97 resistance our composite scores at 70 out of 100. The past 24 hours traded between $522.13 and $525.99, so that line has already been tested. Alphabet sits at $321.85, below its nearest resistance at $323.36, rated 84/100, and its 24-hour range of $320.28 to $323.05 has not reached the level. Alphabet's daily RSI reads 30.4 in a downtrend, while Microsoft's reads 49.2 in a sideways pattern. Microsoft therefore enters Wednesday's print knocking on resistance rather than clearing it; a beat that carries the stock through the band would change that picture, and Alphabet's light $2.94 estimate leaves less room for another post-print slide.