Microsoft Fiscal Q1 2027 Revenue Rises 19% to $92.3B as Azure Jumps 48%
REDMOND, Wash. — Microsoft on October 28 reported results for the first quarter of fiscal 2027 (the three months ended September 30, 2026): revenue of $92.3 billion, up 19%; operating income of $45.9 billion, up 21%; and GAAP net income of $36.6 billion, up 32%, with diluted earnings per share of $4.92, also up 32%.
On a non-GAAP basis, net income was $36.4 billion, up 18%, and diluted EPS was $4.89, up 18%. The difference stems from Microsoft's investment in OpenAI, which contributed net gains of $207 million this quarter (+$0.03 per share) versus net losses of $3.1 billion (−$0.41 per share) in the prior-year quarter.
By segment, Agents and Infra revenue rose 25% to $76.8 billion. Microsoft Cloud revenue grew 30% to $63.9 billion, with Azure revenue up 48%; commercial remaining performance obligation climbed 73% to $677 billion. Microsoft 365 Commercial cloud revenue grew 17% (18% in constant currency), Microsoft 365 Consumer cloud revenue grew 17%, Industry Solutions cloud revenue grew 10%, and LinkedIn revenue grew 10%.
Devices and Consumer revenue fell 3% to $15.5 billion: search and news advertising revenue excluding traffic acquisition costs rose 12%, Xbox content and services revenue declined 2%, and Windows OEM and Devices revenue declined 22%.
Microsoft returned $10.2 billion to shareholders through dividends and share repurchases in the quarter. "We are doubling down to deliver greater capability, choice, control, and cost efficiency for customers across the full stack," said Satya Nadella, chairman and chief executive officer. Amy Hood, executive vice president and chief financial officer, said Microsoft Cloud growth accelerated to 30% and that revenue, operating income and EPS all exceeded expectations on strong customer demand.
Source: GSM · USA (original Chinese edition)
Photo: 图：微软位于华盛顿州雷德蒙德总部的92号楼。照片：Coolcaesar，CC BY-SA 4.0，经 Wikimedia Commons。 / Photo: Building 92 at Microsoft's headquarters in Redmond, Washington. Photo: Coolcaesar, CC BY-SA 4.0, via Wikimedia Commons.
