Microsoft Reports Q1 FY2027 Earnings: Revenue Up 19% to $92.3B, Azure Up 48%

Microsoft Corporation (NASDAQ: MSFT) Q1 Financial Results Overview

Microsoft Corporation filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition), furnishing its financial results for the first fiscal quarter ended September 30, 2026.

Key Financial Highlights

• Revenue: $92.3 billion, representing an increase of 19% year-over-year.
• Operating Income: $45.9 billion, an increase of 21% year-over-year (up 22% in constant currency).
• GAAP Net Income & EPS: Net income reached $36.6 billion ($4.92 diluted EPS), up 32% year-over-year.
• Non-GAAP Net Income & EPS: Net income was $36.4 billion ($4.89 diluted EPS), up 18% year-over-year (up 19% in constant currency), adjusting for impacts related to investments in OpenAI.

Segment & Operational Performance

• Microsoft Cloud: Revenue accelerated to $63.9 billion, climbing 30% year-over-year (up 31% in constant currency).
• Azure: Revenue surged 48% year-over-year, indicating continued demand for cloud infrastructure and AI workloads.
• Commercial Remaining Performance Obligation (RPO): Grew 73% year-over-year to $677 billion.
• Agents and Infrastructure Segment: Total revenue rose 25% to $76.8 billion.
• Microsoft 365 Commercial Cloud: Grew 18% on an adjusted constant-currency basis (17% reported).
• Devices and Consumer Segment: Revenue was $15.5 billion, declining 3% year-over-year.

Market Impact & Significance

This filing represents a high-impact earnings release. Microsoft reported broad-based beats across top-line and bottom-line metrics, driven by high adoption of Azure and cloud-based AI services, reflected in a substantial increase in long-term commercial commitments.