Azure grows 48% to $33.2B; Microsoft offers buyouts to 60,000 employees
rohanpaul_ai · x · 2026-10-29
Microsoft shares rose 4% after hours on FY27 Q1 results:
- Azure revenue grew 48% YoY to $33.2B, beating the $32.3B forecast; total revenue was $92.3B, up 19%
- Data center spending hit $45.2B, below Microsoft's own >$50B forecast due to construction delays; free cash flow fell 27% YoY to $18.6B
- Contracted future revenue reached $677B (+73% YoY), slightly below last quarter's $678B; no update on paid Copilot seats (last reported 30M in July)
- Microsoft is offering buyouts to up to 60,000 employees across the US, Canada, UK and India to control costs as AI infrastructure spending climbs, after headcount already fell 2% YoY
Related event: Microsoft FY27 Q1: Revenue Hits $92.3B, Azure Up 48%, OpenAI Deal Adds $10B(8 posts)→
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