Microsoft reports Q1 capex of $45.2B, up from $34.9B a year earlier and below its own $50B projection, and free cash flow of $18.6B, vs. $8.54B est. by analysts
THE SO WHAT
Microsoft just spent $45.2B in capex in a quarter — up from $34.9B — and still printed $18.6B in free cash flow, more than 2x analyst estimates. For enterprise buyers, this means Azure’s AI buildout is both aggressive and self-funding, so expect continued incentives to lock into their ecosystem long term.
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