Microsoft expects Azure revenue growth to increase to 49%–50% in the second fiscal quarter.

Microsoft (MSFT.US) expects that after accelerating growth in its Azure cloud business and surpassing the company's own guidance in the first fiscal quarter, this segment will see even faster growth in the second fiscal quarter. At constant exchange rates, Azure revenue in the second fiscal quarter is projected to grow by 49% to 50%, after growing 48% in the first quarter. Microsoft anticipates total revenue for the second fiscal quarter to reach between $96 billion and $97.1 billion, with revenue from the Intelligent Cloud and Infrastructure division reaching $80.1 billion to $80.7 billion. The Devices and Consumer division, which includes Azure and Microsoft 365 businesses, is expected to see revenue reach $15.9 billion to $16.4 billion. According to a FactSet survey, analysts currently estimate Microsoft’s second fiscal quarter revenue at $95.63 billion. Microsoft also expects capital expenditures in the second fiscal quarter to exceed $50 billion, highlighting the enormous costs of expanding artificial intelligence infrastructure.