MSFT reported strong revenue growth (up 18%) and Azure expansion (up 40%), but high future capex ($250-260B) creates uncertainty regarding cash flow quality and financing.

I uh I looked at um Microsoft's earnings yesterday and an absolute strong strong um quarter.

All right, Microsoft revenue 90 billion up 18% year-over-year. Uh, that was a beat. Adjusted earnings per share $4.74. It's a beat over 421.

Um, they have a nice size investment in Anthropic, which um, I wasn't I'll go back to full screen which I wasn't aware of. I didn't know Micros I knew Microsoft had invested in Open AI. I did not know they also invested in Anthropic.

Azure business revenue crossed $100 billion dollar for the first time. Up 40% from the prior year. The Azure d the Azure business is up 40% year-over-year at Microsoft. It's astounding to me.

I continue to be floored by the scalability of these these massive companies. How can a company so big as Microsoft who is already doing just 90 billion a year um grow have a division that grows 40% like that and crossing hundred billion dollar uh annual revenue mark amazing

uh intelligent cloud business up 32% Microsoft cloud business up 27% and co-pilot $30 million paid co-pilot seat firsthand adoption numbers have put a stake in the ground. Okay, whatever that means.

I guess this means that co-pilot people are adopting it. Fine.

Uh capex 2027 guidance for capex is 250 to $260 billion. That is astounding.

Uh cash flow quality headline beat revenue. Uh, I want to see free cash flow and capex adjusted operation cash flow before signing off quality earnings. Okay, the big thing here is their capex number 27 billion.

Sorry, in 2027 they're going to spend a quarter trillion in capex. I mean, they don't make that much cash flow in general. So, they're going to have to finance that. Uh, That's going to be that's going to be interesting. We'll we'll see. We'll see how they perform.

They continue to just crush earnings, which is great for them. Here is top blue number is revenue up here. Just absolute staggering. They have doubled revenue as a hundred billion dollar company.

They're now 271 281 billion dollars of revenue. Um, this does not reflect the most recent Q. U, this is July's number on the chart. Uh, yeah, it does already. That data is fast.

It does. So, that's their that's their updated number. $281 billion last year. It's incredible. In just what three years they've added a hundred billion in revenue. That's that's craziness.

No, this is last year's 280 billion was topline last year. What they finished this year with Revenue for 2026 was 381 billion, up 18%. Yes, the 18% year-over-year comment I made earlier was correct.

The quarter was 90 billion. The annual number that they put that they published is 331 billion. That is just insane. Let's go back to our charts. 331 billion. That means in just since 202 [snorts] they've grown from 200 billion dollars.

It's just congratulations Microsoft. Amazing. Amazing.