Microsoft Q1 2026 Earnings Show Mixed Results Amid Cloud Outages and Spending
Microsoft reported strong Q1 2026 earnings with $77.7 billion revenue, driven by cloud and AI growth, despite capacity constraints and margin pressures from AI investments. The company highlighted record cloud revenue, expanding AI platform, and long-term OpenAI partnership, with continued investments in infrastructure and talent to meet rising demand. Outlook remains positive, with expected revenue growth of 14-16% in Q2, though capacity constraints and margin compression are ongoing challenges.