Microsoft (MSFT) reports its latest financial results today, April 29, 2026, as the company overhauls OpenAI rules to fuel a $120 billion AI binge. Even though the company has delivered solid numbers lately, its stock has dropped 20% since January. The market remains nervous as Azure growth slips further, and investors are looking for proof that this record-breaking spending is actually paying off.
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Microsoft’s Azure Growth Slips
The most important number for the stock price today is the growth rate of Azure, the company’s cloud business. In January, growth slipped from 40% to 39%, and the market reacted by selling off shares immediately. For this report, the company expects growth to land between 37% and 38%.
Some analysts, like Tal Liani from Bank of America, believe “capacity constraints rather than flagging demand are holding back growth.” This means growth is limited by a lack of chips instead of a lack of customers. To fix this, CEO Satya Nadella recently opened a new data center in Wisconsin ahead of schedule to bring more power online.
Microsoft Offers its First Historic Severance Package
To balance the checkbook, Microsoft is offering voluntary severance to its U.S. workforce for the first time in its 51-year history. Roughly 8,500 employees, which is about 7% of its U.S. staff, are eligible for the deal. This offer is available to workers whose age and years at the company add up to at least 70.
This move comes as the company plans to spend between $110 billion and $120 billion on AI data centers this year. The company is cutting costs in traditional areas to fund its massive bet on the future of hardware.
OpenAI Shifts the Rules of its Partnership with Microsoft
Just two days before this earnings report, Microsoft changed its deal with OpenAI. The partnership now lasts until 2032, but it is no longer exclusive. This means OpenAI can now sell its technology to rivals like Amazon (AMZN).
The benefit for Microsoft is that it will no longer pay OpenAI a share of the revenue from Copilot products. This change makes Copilot more profitable right away. While 15 million people currently pay for the AI assistant, that is still a small fraction of the 450 million businesses that use Microsoft 365.
Is Microsoft a Good Stock to Buy?
According to TipRanks, MSFT stock has received a Strong Buy consensus rating, with 32 Buys and four Holds assigned in the last three months. The average Microsoft stock price target is $593.38, suggesting a potential upside of 48.5% from the current level.
