Microsoft Revenue Rises 19% to $92.3B as Azure Grows 48%

Microsoft reported results for its fiscal 2027 first quarter, which ended September 30, in an earnings release on October 28, 2026.

Revenue rose 19 percent to $92.3 billion. Operating income was $45.9 billion, up 21 percent, or 22 percent in constant currency. Revenue beat the $89.85 billion to $90.95 billion range Microsoft guided to in September, and CNBC, citing LSEG, reported consensus of $90.69 billion.

GAAP and non-GAAP net income differ. GAAP net income was $36.6 billion, up 32 percent. Non-GAAP net income was $36.4 billion, up 18 percent, or 19 percent in constant currency. Microsoft's non-GAAP figures exclude the impact from investments in OpenAI: a $207 million net gain this quarter, against a $3.1 billion net loss a year earlier, which inflates the GAAP growth rate. Diluted earnings per share was $4.92 on a GAAP basis and $4.89 on a non-GAAP basis.

Azure grew 48 percent. Azure revenue increased 48 percent on both a reported and constant-currency basis, above the 44 to 45 percent constant-currency range Microsoft guided to in September. Microsoft Cloud revenue, a metric that spans Azure, Microsoft 365 commercial cloud and Industry solutions cloud, grew 30 percent to $63.9 billion, or 31 percent in constant currency. Commercial remaining performance obligation rose 73 percent to $677 billion.

New segments show Agents and Infra up 25 percent. Under Microsoft's new reporting segments, Agents and Infra revenue was $76.8 billion, up 25 percent. Devices and Consumer revenue fell 3 percent to $15.5 billion. Search and advertising revenue excluding traffic acquisition costs rose 12 percent, Xbox content and services revenue fell 2 percent, and Windows OEM and Devices revenue fell 22 percent.

Microsoft returned $10.2 billion to shareholders. The company paid it out through dividends and share repurchases in the fiscal first quarter.

Executives said results exceeded expectations. Satya Nadella, Microsoft's chairman and chief executive, said, "We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack." Amy Hood, Microsoft's chief financial officer, said, "Results exceeded expectations across revenue, operating income, and earnings per share."