Microsoft Q1: Capex Shouldn't Scare You Due To Free Cash Flow

Microsoft Corporation remains a Strong Buy, supported by robust Azure growth, a healthy backlog, and positive free cash flow despite market capex concerns. MSFT's Q1 revenue grew 18.8% to $92.2B, with Azure revenue accelerating to 48% growth and Microsoft Cloud up 30%, confirming demand outpaces supply. Capex is elevated but disciplined, with $45.2B reported; MSFT maintains positive free cash flow and a strong balance sheet, differentiating it from peers.