Microsoft reported on Wednesday, October 28, 2026, its results for the first quarter of fiscal 2027, ended September 30, 2026. Revenue was $92.3 billion, up 19% year over year. Operating income reached $45.9 billion, up 21%, and net income was $36.6 billion, up 32% on a GAAP basis.
On an adjusted basis, which excludes the impact of investments in OpenAI, net income was $36.4 billion, up 18%, and adjusted diluted earnings per share were $4.89, also up 18%. The gap between the two readings mainly reflects the OpenAI investments, which had reduced profit a year earlier and had a small positive effect this quarter.
The highlight was Azure. Azure revenue was $33.2 billion, up 48% year over year, according to GeekWire based on the earnings release. It is the first time Microsoft has disclosed quarterly Azure revenue as a separate line, under its new two-segment structure: Agents and Infra, with $76.8 billion in revenue, up 25%, and Devices and Consumer, with $15.5 billion, down 3%.
Microsoft Cloud revenue, which includes Azure, Microsoft 365 and other online services, was $63.9 billion, up 30%. Commercial remaining performance obligation, an indicator of the future contracted backlog, rose 73% to $677 billion. CEO Satya Nadella said the company is turning innovation into growing adoption and real-world impact; CFO Amy Hood said results beat expectations for revenue, operating income and earnings per share.
Not every segment kept pace with the cloud. Xbox content and services revenue fell 2%, and Windows OEM and devices revenue dropped 22%. Microsoft 365 commercial cloud revenue rose 17% as reported, and Microsoft 365 consumer cloud revenue also rose 17%. Microsoft returned $10.2 billion to shareholders through dividends and buybacks in the quarter.
The results also beat market estimates cited by GeekWire, of about $90.75 billion in revenue and $4.72 in adjusted earnings per share. The central message is clear: demand for cloud and AI computing keeps growing faster than the company can install capacity, and Azure is now publicly measured as its own line, which should make future quarters easier to compare.
Image credit: Jiaqian Airplanefan / Wikimedia Commons, foto do campus da Microsoft em Redmond
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