On October 29 (Eastern Time), after the market had closed, Microsoft unveiled its financial report for the first quarter of fiscal year 2026. The report revealed a total revenue of $77.673 billion, marking an 18% year-on-year increase, and a net profit of $27.747 billion, up 12% from the same period last year. However, due to its substantial investment in OpenAI, the net profit for the quarter took a hit, decreasing by $3.086 billion. Looking ahead, Microsoft anticipates its revenue for the second fiscal quarter to fall within the range of $79.5 billion to $80.6 billion. Moreover, the company projects that its Azure cloud business will experience a growth rate of 37%.

In the first fiscal quarter, Microsoft's capital expenditure soared to $34.9 billion, representing a year-on-year surge of over $10 billion. The tech giant has outlined ambitious plans to ramp up its AI computing capabilities by more than 80% within the current year. Additionally, it aims to double the size of its data centers over the next two years. Nevertheless, following the release of these earnings figures, Microsoft's stock price took a tumble, dropping nearly 4% in after-hours trading.