TMTB: MSFT Post-call takeaways

What a print! 35% cc Azure y/y growth vs bogeys close to 31% and a guide to 34-35% (bogeys were around 30% or a 1ppt decel).

Mgmt sounded v bullish on the call saying '“demand signals through April have remained consistent’…FY26 capex expects remain unchanged…rejected DC lease concerns as noise…they expect to be short on power or DC space…….“we processed 50 TRILLION tokens last month.” AI nearly 50% of Azure’s + 35% y/y. Demand is growing faster than supply, accelerated in the Q - expect capacity constraints post June. Trying to get more data center capacity online to satisfy demand."

Azure is the most important MSFT KPI, which is key driver for the stock price.

I like to keep things simple. Here’s what I think Azure will do going fwd and what it means for the narrative/stock: