Microsoft Reports $92.3 Billion Quarterly Revenue as Azure Grows 48%

Markets · Published 29 October 2026

Microsoft reported its fiscal first-quarter 2027 results on 28 October 2026, covering the three months to 30 September 2026. Total revenue was $92.3 billion, up 19 percent from $77.7 billion in the same quarter a year earlier, according to the company's own earnings release. The headline growth came from its cloud business, and the figures give investors a fresh read on how much demand for AI infrastructure is turning into reported sales.

Operating income reached $45.9 billion, up 21 percent, or 22 percent in constant currency. GAAP net income was $36.6 billion, up 32 percent, and GAAP diluted earnings per share were $4.92, compared with $3.72 a year earlier. Microsoft also gives non-GAAP figures that exclude the impact of its OpenAI investment. On that basis, net income was $36.4 billion, up 18 percent, and diluted EPS was $4.89, against $4.13 in the prior-year period. The release presents both sets of numbers side by side, so readers should compare like with like.

Azure was the standout line. TechCrunch, citing the same results, reports Azure revenue of $33.2 billion, up 48 percent from a year earlier, and says it beat the $32.3 billion analysts had expected. Microsoft Cloud revenue reached $63.9 billion, an increase of 30 percent. TechCrunch also notes that Azure's growth came in ahead of the 44 to 45 percent range that Chief Financial Officer Amy Hood had forecast on the July earnings call.

Microsoft's release does not contain numerical guidance. It says the company will provide forward-looking guidance on its earnings call and webcast, which began at 2:30 p.m. Pacific Time. The coverage reviewed for this article does not report what that guidance was, so the outlook for the coming quarters is not settled by the release alone.

Several questions remain open. The release does not break out how much of Azure's growth came from AI services compared with other workloads, and the coverage reviewed does not say how much of the OpenAI-related accounting difference will persist in future periods. It is also not clear how quickly the capacity Microsoft is adding will translate into further revenue growth, since capacity constraints and capital spending were not quantified in the sources read.

The results matter for anyone tracking the cloud and AI market, because Azure is one of the largest sources of demand for the chips and data centres that power AI models. A 48 percent rise in cloud revenue at this scale suggests that customers are still expanding their spending on AI tools and infrastructure, though a single quarter does not show whether that pace can be sustained.

This article reports company-published figures and does not offer investment advice or a view on the share price. Readers who want the full set of line items should read Microsoft's FY27 Q1 press release on its investor relations site, which contains the complete income statement, segment data and reconciliation of non-GAAP measures.

This article was researched and written by an AI system from the sources listed above, under SavvyToolz's sourcing and freshness rules. Read the editorial policy.