03:05 PM EDT, 10/31/2024 (MT Newswires) -- Microsoft's ( MSFT ) fiscal Q1 earnings showed the company had a solid start to the year ahead of recent trends as earnings and revenue beat consensus, RBC Capital Markets said in a note Thursday.

The company on late Wednesday reported fiscal Q1 earnings of $3.30 per diluted share on revenue of $65.59 billion.

Analysts polled by Capital IQ expected $3.11 on revenue of $64.56 billion.

Microsoft's ( MSFT ) fiscal Q2 revenue and earnings guidance were behind street estimates, but they appeared to be conservative, RBC said.

"While investors may be hung up on the optics of decelerating Azure growth paired with substantial CapEx, we see a path to upward revisions," the firm said.

RBC is estimating fiscal Q2 revenue of $69.7 billion, which compares to Microsoft's ( MSFT ) outlook of $68.1 billion to $69.1 billion.

The firm maintained its outperform rating on the stock and a price target of $500.

Price: 409.44, Change: -23.10, Percent Change: -5.34