Key takeaways

  • Microsoft's revenue was $92.3 billion for the quarter ended September 30, 2026, up 19%.
  • Azure revenue grew 48%, and Microsoft Cloud revenue reached $63.9 billion.
  • Commercial remaining performance obligation rose 73% to $677 billion.

Microsoft reported first-quarter fiscal 2027 results on October 28: revenue of $92.3 billion, up 19%, and Azure revenue up 48%. The earnings release, filed after the close, covers the three months that ended September 30, 2026.

Azure grew faster than the 44% to 45% that finance chief Amy Hood had forecast, according to TechCrunch. Microsoft shares traded at $546.39 around 6:49 p.m. ET in after-hours trading, against a close of $531.01 that day, per Yahoo Finance.

The numbers in the release

  • Revenue: $92.3 billion, up 19%.
  • Operating income: $45.9 billion, up 21%.
  • Net income: $36.6 billion, up 32% on a GAAP basis. Excluding the effect of Microsoft's OpenAI investments, it was $36.4 billion, up 18%.
  • Diluted earnings per share: $4.92 (GAAP) and $4.89 (non-GAAP).
  • Microsoft Cloud revenue: $63.9 billion, up 30%.
  • Commercial remaining performance obligation, the value of signed contracts not yet recognized as revenue: $677 billion, up 73%.
  • Returned to shareholders: $10.2 billion in dividends and buybacks.

Azure's dollar figure and a new reporting layout

For the first time, Microsoft put a dollar figure on Azure: $33.2 billion, according to TechCrunch. The company had only given growth rates before. The release groups results under a new segment, Agents and Infra, which brought in $76.8 billion, up 25%. The other new segment, Devices and Consumer, earned $15.5 billion, down 3%, and Windows OEM and Devices revenue fell 22%.

We cover the Azure number on its own in Azure revenue: Microsoft's first dollar figure.

Spending and OpenAI

Capital expenditures reached $45.2 billion, a record for a single quarter, TechCrunch reported. Microsoft's filing also shows about $10 billion of revenue from commercial arrangements with OpenAI in the quarter, nearly 11% of the total, plus $7.2 billion in receivables from OpenAI, TechCrunch reported. Microsoft's ownership stake in OpenAI slipped from about 25% in June to 24% in September, per the same report.

What we don't know yet

Microsoft gives its forward guidance on the earnings call, which began at 5:30 p.m. ET. This article reflects the written release and filings, not the call. Check the Microsoft investor site for the webcast replay.

Our earlier earnings date explainer has the schedule. This article reports results and prices only.

Sources

  1. Microsoft Announces First Quarter Results (8-K exhibit 99.1)Microsoft via SEC EDGAR
  2. Microsoft just shared Azure's actual revenue in dollars: $33.2 billionTechCrunch
  3. Microsoft recorded $10 billion in revenue from OpenAITechCrunch
  4. MSFT quoteYahoo Finance