Microsoft Corporation (MSFT) Forecasts 37%–38% Azure Growth as Investors Question Heavy Outlays

Microsoft Corporation (NASDAQ:MSFT)  is among the 12 Best Autonomous Driving Stocks to Buy Right Now.

Microsoft Corporation (MSFT)'s Shares have Dropped the Most Since 2020 Due to Slowing Cloud Growth

On January 29, 2026, Bloomberg reported that following reports of record spending and slowing cloud growth, Microsoft Corporation (NASDAQ:MSFT) shares dropped as much as 11% to $429.24, the largest intraday decline since March 2020. Azure’s revenue climbed by 38% during the quarter, which was slower than the previous quarter but still met forecasts. Capital expenditures totaled $37.5 billion, exceeding projections and rising 66% year over year. Returns were questioned by investors as spending outpaced Azure’s growth. The corporation projects that Azure will expand by 37% to 38% in the upcoming quarter.

Profit was $5.16 per share, up $1.02 from gains related to OpenAI, while total revenue climbed 17% to $81.3 billion. Businesses are paying for 15 million subscriptions to M365 Copilot. Customer backlog has more than doubled to $625 billion, with OpenAI accounting for 45%, boosted by a new $250 billion transaction. Microsoft Corporation (NASDAQ:MSFT) stated that capacity challenges persist after significant data center investment.

Microsoft Corporation (NASDAQ:MSFT) creates and licenses consumer and enterprise software.

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Disclosure: None. This article is originally published at Insider Monkey.