Microsoft surprised with the results. This is how the market reacts

Microsoft reported $18.6 billion in free cash flow, exceeding analyst expectations by $10 billion. This financial strength distinguishes it from competitors like Alphabet and Meta, who face challenges due to heavy AI investments. The company's Q1 report highlighted strong demand for AI solutions, alleviating concerns about its market position. CEO Satya Nadella emphasized providing affordable AI tools to businesses. Azure revenue reached $33.17 billion, surpassing forecasts, while total revenue grew by 20% to $92.28 billion. Microsoft also announced a voluntary departure program for around 60,000 employees to reduce costs while investing in AI.