Microsoft: 2027 Changes Everything

Microsoft Corporation delivered robust Q1 results, with Azure revenue up 48% Y/Y to $33.2 billion and guidance for even stronger Q2 growth. MSFT's aggressive CapEx—expected to reach $190–$195 billion for the year—remains justified, as the company stays FCF positive while scaling cloud and AI capacity. Updated DCF model values MSFT at $560 per share, reflecting higher growth assumptions and margin improvement; Street consensus is even higher at $605.12.