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Thu, 29 Oct 2026
BreakingEarnings

Microsoft says Azure revenue grew 48% as quarterly sales rose 19% to $92.3bn

Non-GAAP EPS of $4.89 was above a $4.71 Nasdaq.com consensus, and Microsoft Cloud growth sped up to 30%. Shares were 2.91% higher in still-moving after-hours trade at 4:57 PM ET.

By AI markets desk·Sources: 4 sources·Published ·AI-generated·2 min read
Key facts
  • Revenue · Fiscal Q1 2027 (to 30 September)92.3 $bn +19% year on year
  • Microsoft Cloud revenue · Fiscal Q1 2027 (to 30 September)63.9 $bn +30%; +31% constant currency
  • Azure revenue growth · Fiscal Q1 2027 (to 30 September)48 % Year on year
  • Diluted EPS (non-GAAP, excluding OpenAI impact) · Fiscal Q1 2027 (to 30 September)4.89 $ +18% year on year
  • Diluted EPS (GAAP) · Fiscal Q1 2027 (to 30 September)4.92 $ +32% year on year
  • Commercial remaining performance obligation · 30 September 2026677 $bn +73% year on year

Microsoft's revenue for the first quarter of fiscal 2027, which ended on 30 September, rose 19% to $92.3bn, and operating income grew 21% to $45.9bn, or 22% in constant currency, according to the results release it furnished to the SEC at 4:04 PM ET (21:04 CET) on 28 October 2026. Azure revenue increased 48% to $33,165m. Microsoft Cloud revenue reached $63.9bn, up 30%, or 31% in constant currency; in July the company had reported 27% growth for that line in the June quarter. Chief financial officer Amy Hood described the 30% figure as accelerating growth.

Revenue by product line ($m)
ItemsFiscal Q1 2027Fiscal Q1 2026Change
Azure$33,165m$22,384m+48.2%
Microsoft 365 cloud$27,778m$23,694m+17.2%
XBOX$5,379m$5,508m−2.3%
Windows OEM and devices$3,551m$4,551m−22.0%

Source: Microsoft FQ1 2027 results release (Form 8-K, Exhibit 99.1), Quarter to 30 September 2026.

GAAP net income rose 32% to $36.6bn and GAAP diluted EPS 32% to $4.92, but that growth rate is flattered by the year-earlier quarter, when losses on Microsoft's investments in OpenAI cut net income by $3.1bn and EPS by $0.41, the release says. This quarter OpenAI-related gains added $207m and $0.03. Excluding that impact, non-GAAP net income rose 18% to $36.4bn and non-GAAP diluted EPS 18% to $4.89. Other income (expense) was a $38m gain, against a $3,660m loss a year earlier.

“Results exceeded expectations across revenue, operating income, and earnings per share.”

Amy Hood, Executive vice president and chief financial officer, Microsoft · sec.gov

Agents and Infra, under the segment structure Microsoft announced in September 2026, grew revenue 25% to $76.8bn. Devices and Consumer revenue fell 3% to $15.5bn, as Windows OEM and devices dropped 22% and XBOX content and services 2%, while search and advertising revenue, net of traffic acquisition costs, grew 12%. Commercial remaining performance obligation rose 73% from a year earlier to $677bn, against the $678bn Microsoft gave for 30 June in its July release. According to the cash-flow statement, additions to property and equipment were $39.4bn, against $19.4bn a year earlier. Microsoft returned $10.2bn through dividends and buybacks.

In after-hours trading that was still moving, Microsoft shares were up 2.91% at $546.48 as of 4:57 PM ET (21:57 CET) on 28 October, according to Nasdaq.com, after closing down 0.06% at $531.01. CNBC said the shares rose after results that beat estimates, helped by 48% Azure growth. Non-GAAP EPS of $4.89 was about 3.8% above the $4.71 consensus from 14 estimates on Nasdaq.com, Polstob's comparison; the site records $4.74 for the June quarter, Microsoft's non-GAAP figure, so the basis matches. Revenue of $92.3bn was above the $90.69bn LSEG consensus cited by CNBC, Polstob's comparison.

The release contains no outlook; on its 5:30 PM ET (22:30 CET) call, Microsoft forecast fiscal second-quarter revenue of $96bn to $97.1bn, CNBC reports.