Microsoft Earnings Top Item to Watch for AI Stocks: Dan Ives Says 'Most Important Print of the Week'

Key takeaways

• Microsoft’s Q1 2026 results confirm its dominant position in AI and cloud, with robust revenue and earnings growth that supports a high valuation target.
• Revenue: $90.68 billion
• EPS

  Earnings per share — profit for one share of the company, in dollars.

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  : $4.72
• Azure growth
  guidance

  What a company says it expects for future sales or profits — a forecast from the company, not a guarantee.

  : 45%
  YoY

  Year over year — compared with the same period last year.

What happened

Microsoft Corporation (NASDAQ: MSFT) reported its first‑quarter 2026 results, posting revenue of $90.68 billion and earnings per share of $4.72, both up from $77.67 billion and $4.13 respectively in the same period last year. The company achieved its 15th consecutive quarter of double‑beat earnings and revenue, continuing a 14‑quarter streak of double beats. Analysts highlighted Azure cloud growth at 45% year‑over‑year and noted that Microsoft’s Copilot AI monetization is becoming clearer.

Why it matters

The earnings release is a key gauge of Microsoft’s enterprise AI and cloud dominance, with Azure driving the bulk of revenue growth. A strong performance reinforces Microsoft’s leadership in AI infrastructure and supports its high valuation target. The results also provide insight into the company’s capacity…

Short-term and longer-term

Short-term. Microsoft’s stock is trading near its 52‑week high, and the Q1 earnings release is likely to be a catalyst for short‑term price movement.

Longer-term. For investors, the Q1 results reinforce Microsoft’s long‑term growth narrative in AI and cloud services.