Microsoft earnings press release available on Investor Relations website

OpenAI investment gains increased quarterly net income by $207 million, compared with investment losses in the prior-year quarter.

Rhea-AI Summary

Microsoft (MSFT) reported first-quarter revenue of $92.3 billion, up 19% from the corresponding period of the prior fiscal year. For the quarter ended September 30, 2026, operating income rose 21% to $45.9 billion. GAAP net income increased 32% to $36.6 billion, and diluted earnings per share rose 32% to $4.92. Excluding OpenAI investment impacts, adjusted net income and diluted earnings per share increased 18% to $36.4 billion and $4.89.

Microsoft Cloud revenue increased 30% to $63.9 billion, while Azure revenue grew 48%. Commercial remaining performance obligation, representing contracted future revenue, rose 73% to $677 billion. Agents and Infra revenue increased 25% to $76.8 billion. Devices and Consumer revenue fell 3% to $15.5 billion, including a 22% decline in Windows OEM and Devices revenue. Microsoft returned $10.2 billion through dividends and share repurchases.

18 points · 0 major

PositiveiHow this balance works

How this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 8 points

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Positive

• Moderate pointRevenue rose 19% year over year to $92.3 billion in the first quarter.
• Moderate pointOperating income increased 21% year over year to $45.9 billion; growth was 22% excluding currency effects.
• Moderate pointGAAP net income rose 32% to $36.6 billion; adjusted net income increased 18% to $36.4 billion.
• Moderate pointMicrosoft Cloud revenue grew 30% to $63.9 billion, or 31% excluding currency effects.
• Moderate pointCommercial remaining performance obligation increased 73% to $677 billion in contracted future revenue.
• Moderate pointAgents and Infra revenue increased 25% year over year to $76.8 billion.

12 minor points

• Minor pointGAAP diluted EPS increased 32% to $4.92; adjusted diluted EPS rose 18% to $4.89.
• Minor pointAzure revenue increased 48% year over year.
• Minor pointMicrosoft 365 commercial cloud revenue grew 17% reported, or 18% normalized for a prior-year recognition benefit.
• Minor pointMicrosoft 365 consumer cloud revenue increased 17%, or 16% excluding currency effects.
• Minor pointIndustry solutions cloud revenue increased 10% year over year.
• Minor pointSearch and advertising revenue excluding traffic acquisition costs increased 12% year over year.
• Minor pointShareholder returns totaled $10.2 billion through dividends and share repurchases in fiscal 2027's first quarter.
• Minor pointOpenAI investment gains added $207 million to net income and $0.03 to diluted EPS.
• Minor pointService and other revenue increased to $77,648 million from $61,751 million in the prior-year quarter.
• Minor pointGross margin increased to $62,559 million from $53,630 million in the prior-year quarter.
• Minor pointSales and marketing expenses decreased to $5,716 million from $5,717 million in the prior-year quarter.
• Minor pointOther income, net, reached $38 million, versus net expense of $3,660 million in the prior-year quarter.

Negative

• Moderate pointDevices and Consumer revenue decreased 3% year over year to $15.5 billion.
• Minor pointWindows OEM and Devices revenue decreased 22% year over year.
• Minor pointXBOX content and services revenue decreased 2%, or 1% excluding currency effects.
• Minor pointProduct revenue decreased to $14,631 million from $15,922 million in the prior-year quarter.
• Minor pointTotal cost of revenue increased to $29,720 million from $24,043 million in the prior-year quarter.

3 minor points

• Minor pointResearch and development expenses increased to $9,047 million from $8,146 million in the prior-year quarter.
• Minor pointGeneral and administrative expenses increased to $1,881 million from $1,806 million in the prior-year quarter.
• Minor pointIncome tax provision increased to $9,324 million from $6,554 million in the prior-year quarter.

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Key Figures

Revenue: $92.3 billion; +19% Operating income: $45.9 billion; +21% Net income (GAAP / non-GAAP): $36.6 billion; +32% / $36.4 billion; +18% +5 more

Revenue

$92.3 billion; +19%

Q1 FY2027, year over year

Operating income

$45.9 billion; +21%

Q1 FY2027, year over year

Net income (GAAP / non-GAAP)

$36.6 billion; +32% / $36.4 billion; +18%

Q1 FY2027, year over year

Diluted EPS (GAAP / non-GAAP)

$4.92; +32% / $4.89; +18%

Q1 FY2027, year over year

Microsoft Cloud revenue

$63.9 billion; +30%

Q1 FY2027, year over year

Commercial remaining performance obligation

$677 billion; +73%

Q1 FY2027

Devices and Consumer revenue

$15.5 billion; -3%

Q1 FY2027, year over year

Returned to shareholders

$10.2 billion

Dividends and share repurchases in Q1 FY2027

Key Terms

gaap, non-gaap, constant currency, commercial remaining performance obligation

4 terms

gaap financial

"generally accepted accounting principles (GAAP)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"reconciles our financial results reported in accordance with generally accepted accounting"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

constant currency financial

"up 22% in constant currency"

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

commercial remaining performance obligation financial

"Commercial remaining performance obligation increased 73% to $677 billion"

The portion of a company’s remaining performance obligations under revenue‑recognition rules that arises from commercial contracts to deliver goods or services for consideration. Under ASC 606/IFRS 15, a remaining performance obligation is the transaction price allocated to goods or services that the company has promised but has not yet satisfied; the “commercial” qualifier identifies the subset tied to market‑facing, revenue‑generating contracts (for example product sales, supply agreements, or service contracts) as opposed to non‑commercial arrangements like certain grants, internal projects, or purely research‑stage collaborations. It represents expected future revenue recognition from those contracts but is not a cash guarantee and can change as contracts are modified, cancelled, or remeasured.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Microsoft Announces First Quarter Results

REDMOND, Wash. — October 28, 2026 — Microsoft Corp. today announced the following results for the quarter ended September 30, 2026, as compared to the corresponding period of last fiscal year:

•

Revenue was $92.3 billion and increased 19%

•

Operating income was $45.9 billion and increased 21% (up 22% in constant currency)

•

Net income was $36.6 billion and increased 32% on a GAAP basis, and was $36.4 billion and increased 18% (up 19% in constant currency) on a non-GAAP basis

•

Diluted earnings per share was $4.92 and increased 32% on a GAAP basis, and was $4.89 and increased 18% (up 19% in constant currency) on a non-GAAP basis

•

Non-GAAP results exclude the impact from investments in OpenAI, explained in the Non-GAAP Definition section below

“We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack,” said Satya Nadella, chairman and chief executive officer of Microsoft. “By helping organizations build and own their own intelligence, and earning trust through agent safety and security, we are translating our innovation into growing adoption and real-world impact across every industry.”

“We delivered a strong start to the fiscal year with Microsoft Cloud revenue of $63.9 billion, with growth accelerating to 30% (up 31% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “Results exceeded expectations across revenue, operating income, and earnings per share.”

The following table adjusts for the impact from investments in OpenAI and reconciles our financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

Three Months Ended September 30,
	2026				2025				Percentage Change Y/Y			Percentage Change Y/Y
($ in millions, except per share amounts)	As Reported (GAAP)	Impact from OpenAI*	As Adjusted (non-GAAP)		As Reported (GAAP)	Impact from OpenAI*	As Adjusted (non-GAAP)		GAAP	Constant Currency	Net Impact from OpenAI*	Non-GAAP	Non-GAAP Constant Currency
Net income	$36,629	$(207)	$36,422		$27,747	$3,086	$30,833		32%	33%	$(3,293)	18%	19%
Diluted earnings per share	$4.92	$(0.03)	$4.89		$3.72	$0.41	$4.13		32%	33%	$(0.44)	18%	19%

*Impact from OpenAI adjusts for the impact from investments in OpenAI

Business Highlights

Revenue in Agents and Infra was $76.8 billion and increased 25%, with the following business highlights:

•

Commercial remaining performance obligation increased 73% to $677 billion

•

Microsoft Cloud revenue was $63.9 billion and increased 30% (up 31% in constant currency)

•

Azure revenue increased 48%

•

Microsoft 365 commercial cloud revenue increased 18% (up 19% in constant currency) on an adjusted basis, normalized for a 1-point benefit from in-period revenue recognition in the prior year, and increased 17% (up 18% in constant currency) on a reported basis

•

Microsoft 365 consumer cloud revenue increased 17% (up 16% in constant currency)

•

Industry solutions cloud revenue increased 10%

 

Revenue in Devices and Consumer was $15.5 billion and decreased 3%, with the following business highlights:

•

Search and advertising revenue excluding traffic acquisition costs increased 12%

•

XBOX content and services revenue decreased 2% (down 1% in constant currency)

•

Windows OEM and Devices revenue decreased 22%

Microsoft returned $10.2 billion to shareholders in the form of dividends and share repurchases in the first quarter of fiscal year 2027.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Quarterly Highlights, Product Releases, and Customer Stories

Every quarter Microsoft delivers hundreds of products, services, and enhancements. These releases are driven by years of significant research and development investments, to empower customers with greater productivity, security, and differentiated value.

This momentum is reflected in stories that showcase how our technology is shaping industries and driving customer success. We share innovation updates on our product blogs across Azure, Microsoft 365, and more on our Official Microsoft blog.

Webcast Details

Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Brian DeFoe, deputy general counsel and corporate secretary, and Jonathan Neilson, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. Participants can also dial into the conference call at (877) 407-0666 or +1 (201) 689-8023 for international, no password required. The webcast will be available for replay through the close of business on October 28, 2027.

Non-GAAP Definition

Impact from investments in OpenAI. In the first quarter of fiscal year 2027, net income and diluted earnings per share were impacted by net gains from investments in OpenAI, which resulted in an increase in net income and diluted earnings per share of $207 million and $0.03, respectively. In the first quarter of fiscal year 2026, net income and diluted earnings per share were impacted by net losses from investments in OpenAI, which resulted in a decrease in net income and diluted earnings per share of $3.1 billion and $0.41, respectively.

Microsoft has provided non-GAAP financial measures related to the impact from investments in OpenAI to aid investors in better understanding our performance. Microsoft believes these non-GAAP measures assist investors by providing additional insight into its operational performance and help clarify trends affecting its business. For comparability of reporting, management considers non-GAAP measures in conjunction with GAAP financial results in evaluating business performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Constant Currency

Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Financial Performance Constant Currency Reconciliation

Three Months Ended September 30,
	2026			2025			Percentage Change Y/Y			Percentage Change Y/Y
($ in millions, except per share amounts)	As Reported (GAAP)	As Adjusted (non-GAAP)		As Reported (GAAP)	As Adjusted (non-GAAP)		GAAP	Non-GAAP	Constant Currency Impact	Constant Currency	Non-GAAP Constant Currency
Revenue	$92,279	-		$77,673	-		19%	-	$(309)	19%	-
Operating income	$45,915	-		$37,961	-		21%	-	$(297)	22%	-
Net income	$36,629	$36,422		$27,747	$30,833		32%	18%	$(242)	33%	19%
Diluted earnings per share	$4.92	$4.89		$3.72	$4.13		32%	18%	$(0.03)	33%	19%

Segment Revenue Constant Currency Reconciliation

Three Months Ended September 30,
	2026		2025		Percentage Change Y/Y		Percentage Change Y/Y
($ in millions)	As Reported (GAAP)		As Reported (GAAP)		GAAP	Constant Currency Impact	Constant Currency
Agents and Infra	$76,795		$61,672		25%	$(290)	25%
Devices and Consumer	$15,484		$16,001		(3)%	$(19)	(3)%

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business, which reflects the fiscal year 2027 changes to our segments announced in September 2026.

Selected Product and Service Information Constant Currency Reconciliation

Three Months Ended September 30, 2026
	Percentage Change Y/Y (GAAP)	Constant Currency Impact	Percentage Change Y/Y Constant Currency
Commercial remaining performance obligation	73%	0%	73%
Microsoft Cloud revenue	30%	1%	31%
Azure revenue	48%	0%	48%
Microsoft 365 commercial cloud revenue	17%	1%	18%
Microsoft 365 consumer cloud revenue	17%	(1)%	16%
Industry solutions cloud revenue	10%	0%	10%
Search and advertising revenue excluding traffic acquisition costs	12%	0%	12%
XBOX content and services revenue	(2)%	1%	(1)%
Windows OEM and devices revenue	(22)%	0%	(22)%

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

•

intense competition in all of our markets that could adversely affect our results of operations;

•

substantial investments in cloud and AI strategy that depend on customer demand, technological developments, competitive dynamics, and regulatory condition;

•

development, delivery, and maintenance of competitive cloud-based and AI products and services that achieve broad customer adoption and sustainable revenue growth;

•

significant investments in products and services that may not achieve expected returns;

•

acquisitions, joint ventures, and strategic alliances that could have an adverse effect on our business;

•

cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

•

disclosure and misuse of personal data that could cause liability and harm to our reputation;

•

the possibility that we may not be able to protect information in our products and services from use by others;

•

abuse of our platforms that may harm our reputation or user engagement;

•

products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;

•

issues about the development, deployment, and use of AI that may result in reputational or competitive harm, or liability;

•

inability to develop and expand adequate infrastructure;

•

supply or other quality problems;

•

excessive outages, disruptions, or capacity constraints of our services if we fail to maintain an adequate operations infrastructure or secure resources necessary to support it;

•

potential consequences of new, existing, and evolving legal and regulatory requirements;

•

claims against us that could result in adverse outcomes in legal disputes;

•

uncertainties relating to our business with government customers;

•

additional tax liabilities;

•

an inability to protect and utilize our intellectual property may harm our business and operating results;

•

claims that Microsoft has infringed the intellectual property rights of others;

•

damage to our reputation or our brands that may harm our business and results of operations;

•

adverse economic or market conditions that could harm our business;

•

catastrophic events or geopolitical conditions that could disrupt our business;

•

exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange; and

•

the dependence of our business on our ability to attract and retain talented employees.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of September 30, 2026. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, press only:

Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

For more information, financial analysts and investors only:

Jonathan Neilson, Vice President, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

MICROSOFT CORPORATION

 

INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)

 

		Three Months Ended September 30,
		2026		2025
Revenue:
Product		$14,631		$15,922
Service and other		77,648		61,751
Total revenue		92,279		77,673
Cost of revenue:
Product		2,471		2,922
Service and other		27,249		21,121
Total cost of revenue		29,720		24,043
Gross margin		62,559		53,630
Research and development		9,047		8,146
Sales and marketing		5,716		5,717
General and administrative		1,881		1,806
Operating income		45,915		37,961
Other income (expense), net		38		(3,660)
Income before income taxes		45,953		34,301
Provision for income taxes		9,324		6,554
Net income		$36,629		$27,747
Earnings per share:
Basic		$4.93		$3.73
Diluted		$4.92		$3.72
Weighted average shares outstanding:
Basic		7,426		7,433
Diluted		7,446		7,466

 

COMPREHENSIVE INCOME STATEMENTS

(In millions) (Unaudited)

 

		Three Months Ended
		September 30,
		2026		2025
Net income		$36,629		$27,747
Other comprehensive income (loss), net of tax:
Net change related to derivatives		3		(3)
Net change related to investments		(559)		687
Translation adjustments and other		(17)		(98)
Other comprehensive income (loss)		(573)		586
Comprehensive income		$36,056		$28,333

 

BALANCE SHEETS

(In millions) (Unaudited)

 

		September 30, 2026		June 30, 2026
Assets
Current assets:
Cash and cash equivalents		$20,281		$20,935
Short-term investments		44,228		55,908
Total cash, cash equivalents, and short-term investments		64,509		76,843
Accounts receivable, net of allowance for doubtful accounts of $728 and $1,040		62,084		80,876
Inventories		1,835		1,397
Other current assets		57,709		48,594
Total current assets		186,137		207,710
Property and equipment, net of accumulated depreciation of $127,208 and $118,691		346,844		313,076
Operating lease right-of-use assets		30,178		24,177
Equity and other investments		37,808		36,348
Goodwill		119,646		119,651
Intangible assets, net		17,751		18,609
Other long-term assets		41,039		38,805
Total assets		$779,403		$758,376
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$42,625		$42,416
Current portion of long-term debt		4,391		9,227
Accrued compensation		10,156		14,945
Short-term income taxes		1,447		2,534
Short-term unearned revenue		66,866		72,965
Other current liabilities		26,483		26,738
Total current liabilities		151,968		168,825
Long-term debt		31,090		31,067
Long-term income taxes		29,235		28,647
Long-term unearned revenue		2,697		2,747
Deferred income taxes		3,174		3,054
Operating lease liabilities		21,719		16,532
Other long-term liabilities		69,011		65,117
Total liabilities		308,894		315,989
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 7,427 and 7,427		119,571		117,406
Retained earnings		354,795		328,265
Accumulated other comprehensive loss		(3,857)		(3,284)
Total stockholders' equity		470,509		442,387
Total liabilities and stockholders' equity		$779,403		$758,376

 

CASH FLOWS STATEMENTS

(In millions) (Unaudited)

 

		Three Months Ended
		September 30,
		2026		2025
Operations
Net income		$36,629		$27,747
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other		11,744		8,147
Stock-based compensation expense		3,134		2,983
Net recognized losses (gains) on investments and derivatives		(231)		3,907
Deferred income taxes		4,609		2,491
Changes in operating assets and liabilities:
Accounts receivable		17,104		16,490
Inventories		(436)		(192)
Other current assets		(1,903)		(1,162)
Other long-term assets		(6,389)		(394)
Accounts payable		525		(614)
Unearned revenue		(5,942)		(5,418)
Income taxes		(556)		(2,944)
Other current liabilities		(4,528)		(5,507)
Other long-term liabilities		4,240		(477)
Net cash from operations		58,000		45,057
Financing
Repayments of debt		(4,850)		0
Common stock issued		598		689
Common stock repurchased		(4,379)		(5,650)
Common stock cash dividends paid		(6,757)		(6,169)
Other, net		(1,252)		(669)
Net cash used in financing		(16,640)		(11,799)
Investing
Additions to property and equipment		(39,367)		(19,394)
Acquisition of companies, net of cash acquired and divestitures, and purchases of intangible and other assets		(397)		(578)
Purchases of investments		(5,394)		(17,671)
Maturities of investments		5,672		6,031
Sales of investments		10,470		3,262
Other, net		(12,949)		(6,209)
Net cash used in investing		(41,965)		(34,559)
Effect of foreign exchange rates on cash and cash equivalents		(49)		(92)
Net change in cash and cash equivalents		(654)		(1,393)
Cash and cash equivalents, beginning of period		20,935		30,242
Cash and cash equivalents, end of period		$20,281		$28,849

We have recast certain prior period amounts to conform to the current period presentation.

SEGMENT RESULTS

(In millions) (Unaudited)

		Three Months Ended
		September 30,
		2026		2025
Agents and Infra
Revenue		$76,795		$61,672
Cost of revenue		23,887		17,701
Operating expenses		12,350		11,253
Operating income		$40,558		$32,718
Devices and Consumer
Revenue		$15,484		$16,001
Cost of revenue		5,833		6,342
Operating expenses		4,294		4,416
Operating income		$5,357		$5,243
Total
Revenue		$92,279		$77,673
Cost of revenue		29,720		24,043
Operating expenses		16,644		15,669
Operating income		$45,915		$37,961

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business, which reflects the fiscal year 2027 changes to our segments announced in September 2026.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRODUCT AND SERVICE OFFERINGS REVENUE

(In millions) (Unaudited)

		Three Months Ended
		September 30,
		2026		2025
Azure		$33,165		$22,384
Microsoft 365 cloud		27,778		23,694
Productivity and server licensing		8,407		8,678
Search and advertising		6,554		5,942
XBOX		5,379		5,508
Industry solutions		5,337		4,894
Windows OEM and devices		3,551		4,551
Frontier and support services		2,108		2,022
Total revenue		$92,279		$77,673

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business, which reflects the fiscal year 2027 changes to our segments announced in September 2026.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Microsoft's first-quarter fiscal 2027 revenue and earnings?

Microsoft reported $92.3 billion in revenue and $4.92 in GAAP diluted earnings per share for the quarter ended September 30, 2026. Revenue increased 19% and diluted earnings per share increased 32% from the corresponding period of the prior fiscal year.

How fast did Microsoft Azure and Microsoft Cloud grow in the first quarter?

Azure revenue increased 48% year over year, while Microsoft Cloud revenue increased 30% to $63.9 billion. Microsoft Cloud growth was 31% excluding currency effects.

How did OpenAI investments affect Microsoft's first-quarter fiscal 2027 earnings?

OpenAI investment gains increased Microsoft's net income by $207 million and diluted earnings per share by $0.03. In the first quarter of fiscal 2026, OpenAI investment losses reduced net income by $3.1 billion and diluted earnings per share by $0.41. Microsoft's adjusted earnings exclude these investment impacts.

Why does Microsoft show two growth rates for Microsoft 365 commercial cloud revenue?

The 18% adjusted growth rate normalizes for a 1-point benefit from in-period revenue recognition in the prior year, while reported growth was 17%. Excluding currency effects, adjusted growth was 19% and reported growth was 18%.