Microsoft: Accelerating Azure Growth Crushes The Bear Thesis

Microsoft delivered robust Q1 results with 19% YoY revenue growth and strong AI-driven Azure momentum. MSFT's profitability showed minor gross margin softness, but operating margin expanded; Q2 guidance signals continued top-line strength but with margin pressure. CapEx remains elevated, with over $50B planned for Q2, justified by robust AI demand and accelerating Azure growth.