Microsoft reported fiscal first-quarter revenue of $92.3 billion, up 19%, with Azure up 48% and Microsoft Cloud revenue of $63.9 billion, beating consensus estimates.
Microsoft reported a stronger-than-expected start to its 2027 fiscal year on October 28, with revenue of $92.3 billion for the quarter ended September 30, up 19% from a year earlier. Operating income rose 21% to $45.9 billion, while net income on a GAAP basis rose 32% to $36.6 billion and diluted earnings per share reached $4.92. On a non-GAAP basis, which strips out the effect of its OpenAI investments, earnings per share were $4.89, up 18%.
The cloud business carried the quarter. Microsoft Cloud revenue was $63.9 billion, up 30%, and Azure revenue grew 48%. Revenue in the Agents and Infra segment reached $76.8 billion, up 25%, and commercial remaining performance obligation jumped 73% to $677 billion. Devices and Consumer revenue fell 3% to $15.5 billion, with Windows OEM and devices revenue down 22% and Xbox content and services down 2%, while Microsoft returned $10.2 billion to shareholders through dividends and buybacks.
Chief executive Satya Nadella said the company was translating innovation into growing adoption across every industry, and chief financial officer Amy Hood said results exceeded expectations across revenue, operating income and earnings per share. MarketBeat put the consensus at $4.72 in earnings per share and $90.62 billion in revenue, so the reported $4.89 and $92.28 billion cleared both bars, and reports of extended trading put the shares up by about 4% to 5% after the release.
Microsoft's own release is the source for the headline figures, and its reconciliation explains the gap between the GAAP and non-GAAP profit lines. Net income in the quarter included a $207 million gain from its OpenAI investments, compared with a $3.1 billion loss from those investments a year earlier, so part of the 32% GAAP profit jump reflects that swing rather than operating performance alone. The release also says forward guidance would be given on the earnings call rather than in the release itself, so the outlook had not been published in the document at the time of writing.
The result matters because Azure and Microsoft Cloud are the clearest test yet of whether heavy spending on artificial intelligence infrastructure is turning into enterprise revenue. The next check will be the guidance given on the call and the following quarterly report, covering the December quarter, alongside Amazon's results due on October 29, which will show whether the same cloud demand is lifting its rivals.