Microsoft reported solid fiscal first-quarter 2023 results, including revenue and EPS results ahead of the guidance midpoints. The outlook, however, was worse than our below-consensus model was contemplating. Macro pressures continue to weigh on the company’s performance. Bulls can point to good growth in commercial bookings and commercial remaining performance obligation to find near-term comfort, while bears will no doubt highlight slowing Azure and weaker-than-expected guidance. We continue to find encouragement in Azure, Office E5 migration, and traction with the Power platform for long-term value creation, but we think near-term pressures will not be exhausted within the next quarter.