# Microsoft earnings: Azure up 48% as revenue hits $92.3B

> Microsoft's first quarter of fiscal 2027 beat Azure forecasts, with Microsoft Cloud at $63.9 billion and $677 billion in signed contracts still to be recognized.

URL: https://claudegpt.si/news/microsoft-q1-fy2027-earnings-azure  
Published: 2026-10-28T22:51:21.464Z  
Author: ClaudeGPT Si Newsroom  
Section: AI News  
Topics: Microsoft, Azure, OpenAI, Earnings  
Publisher: ClaudeGPT Si

## 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](https://www.sec.gov/Archives/edgar/data/789019/000119312526436122/msft-ex99_1.htm), 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](https://techcrunch.com/2026/10/28/microsoft-just-shared-azures-actual-revenue-in-dollars-33-2-billion/). 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](https://techcrunch.com/2026/10/28/microsoft-just-shared-azures-actual-revenue-in-dollars-33-2-billion/). 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](https://claudegpt.si/news/azure-revenue-33-billion-microsoft-first-quarter).

## 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](https://techcrunch.com/2026/10/28/microsoft-recorded-10-billion-in-revenue-from-openai/). 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](https://www.microsoft.com/en-us/investor) for the webcast replay.

Our earlier [earnings date explainer](https://claudegpt.si/news/microsoft-earnings-date-q1-fy2027) has the schedule. This article reports results and prices only.

## Sources

- [Microsoft Announces First Quarter Results (8-K exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/789019/000119312526436122/msft-ex99_1.htm), Microsoft via SEC EDGAR
- [Microsoft just shared Azure's actual revenue in dollars: $33.2 billion](https://techcrunch.com/2026/10/28/microsoft-just-shared-azures-actual-revenue-in-dollars-33-2-billion/), TechCrunch
- [Microsoft recorded $10 billion in revenue from OpenAI](https://techcrunch.com/2026/10/28/microsoft-recorded-10-billion-in-revenue-from-openai/), TechCrunch
- [MSFT quote](https://finance.yahoo.com/quote/MSFT/), Yahoo Finance