Microsoft’s fiscal first-quarter revenue climbed 19% to $92.279 billion, while Azure grew 48%, highlighting cloud expansion in results for the three months ended Sept. 30, 2026.
Microsoft released the fiscal 2027 first-quarter results on Oct. 28. Microsoft Cloud revenue increased 30% to $63.9 billion. Commercial remaining performance obligations reached $677 billion at quarter-end, a 73% increase from a year earlier.
On its July earnings call, Microsoft forecast about 45% Azure growth in constant currency. Azure grew 48% in constant currency in the latest quarter, above that outlook on the same basis.
Operating income rose 21% to $45.915 billion. Net income under generally accepted accounting principles (GAAP) increased 32% to $36.629 billion, while diluted earnings per share rose 32% to $4.92.
The company reported $76.795 billion in Agents and Infra revenue, up 25%. Devices and Consumer revenue declined 3% to $15.484 billion. Microsoft said it revised selected figures from earlier periods after announcing changes to its fiscal 2027 reporting segments in September 2026.
Microsoft also reported non-GAAP net income of $36.422 billion, up 18%, and diluted earnings per share of $4.89, also up 18%. The company says its non-GAAP measures exclude the impact of its OpenAI investments. It advises considering those measures alongside GAAP results, and says they are neither a substitute for nor superior to GAAP measures.
Microsoft said gains from OpenAI investments added $207 million to net income and 3 cents to diluted earnings per share in the latest quarter. In the year-earlier period, investment losses reduced net income by $3.1 billion and earnings per share by 41 cents. The company returned $10.2 billion to shareholders through dividends and share repurchases during the quarter.
