Analysts Forecast Microsoft Azure Growth Above Its Q1 Outlook

Microsoft is scheduled to report fiscal 2027 first-quarter results after the market closes Oct. 28, as analyst projections put Azure growth above the company’s current Q1 range.

TD Cowen analyst Derrick Wood expects Azure to post a larger-than-usual beat in fiscal Q1. BNP Paribas analyst Stefan Slowinski forecasts 46% Azure growth for the quarter and 49% in fiscal Q2. Slowinski’s Q1 projection is 1 to 2 percentage points above Microsoft’s outlook range.

Microsoft’s revised outlook calls for Azure growth of 44% to 45% year over year on a constant-currency basis. Foreign exchange is expected to reduce the growth rate by less than 1 percentage point.

Azure’s annual revenue exceeded $100 billion in fiscal 2026, up 41% year over year. Microsoft Chief Financial Officer Amy Hood said in July that “customer demand continues to exceed supply.”

Microsoft forecast fiscal first-quarter revenue of $89.85 billion to $90.95 billion and capital expenditures above $50 billion. The company’s earnings call is scheduled for 5:30 p.m. ET (21:30 UTC) on Oct. 28.