Microsoft Posts 19% Revenue Growth as Cloud and AI Demand Accelerate

Microsoft Corp. reported first-quarter fiscal 2027 revenue of $92.3 billion, up 19% from a year earlier, according to a filing detailing its quarterly results.

Operating income rose 21% to $45.9 billion, or 22% on a constant currency basis, for the quarter ended September 30, 2026. Net income increased 32% on a GAAP basis to $36.6 billion, while diluted earnings per share rose 32% to $4.92. On a non-GAAP basis, which excludes the impact of Microsoft's investments in OpenAI, net income was $36.4 billion, up 18%, and diluted EPS was $4.89, also up 18%.

The company said the OpenAI investments added $207 million to net income and $0.03 to diluted EPS this quarter, compared with a $3.1 billion reduction to net income and a $0.41 hit to EPS in the same period last year.

Microsoft Cloud revenue reached $63.9 billion, up 30%, or 31% in constant currency. Revenue from the Agents and Infra segment totaled $76.8 billion, an increase of 25%, driven in part by Azure revenue growth of 48% and a 73% rise in commercial remaining performance obligation, which reached $677 billion. Microsoft 365 commercial cloud revenue grew 17% on a reported basis, while consumer cloud revenue rose 17% and industry solutions cloud revenue increased 10%.

Devices and Consumer segment revenue fell 3% to $15.5 billion. Within that segment, search and advertising revenue excluding traffic acquisition costs grew 12%, while Xbox content and services revenue declined 2% and Windows OEM and Devices revenue dropped 22%.

Chairman and CEO Satya Nadella said the company is delivering greater capability, choice, control and cost efficiency for customers across its stack. Chief Financial Officer Amy Hood said results exceeded expectations across revenue, operating income and earnings per share. Microsoft returned $10.2 billion to shareholders through dividends and share repurchases during the quarter.

Finazon · prior-day close, indicative (IEX-derived, not the official close) · Oct 27, 2026