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id: "microsoft-announces-first-quarter-results-86caac"
slug: "microsoft-announces-first-quarter-results-86caac"
title: "Microsoft Announces First Quarter Results"
description: "Microsoft reported $92.3 billion in revenue for the quarter ended September 30, 2026, with Microsoft Cloud revenue up 30% and Azure up 48%."
retrieval_nugget: "Microsoft reported $92.3 billion in revenue for the quarter ended September 30, 2026, with Microsoft Cloud revenue up 30% and Azure up 48%. The figures do not change what builders can buy today, but they indicate the scale and momentum of the cloud business that underpins many AI products."
published_at: "2026-11-03"
updated_at: "2026-11-07"
record_date: "2026-11-03"
date_kind: "published_at"
topics: ["ai-business-models","enterprise-ai","compute"]
entities: ["Microsoft","Azure","Microsoft Cloud","OpenAI"]
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source_url: "https://www.sec.gov/Archives/edgar/data/0000789019/000119312526436122/msft-ex99_1.htm"
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# Microsoft Announces First Quarter Results

## Retrieval answer

Microsoft reported $92.3 billion in revenue for the quarter ended September 30, 2026, with Microsoft Cloud revenue up 30% and Azure up 48%. The figures do not change what builders can buy today, but they indicate the scale and momentum of the cloud business that underpins many AI products.

## Summary
Microsoft reported $92.3 billion in revenue for the quarter ended September 30, 2026, with Microsoft Cloud revenue up 30% and Azure up 48%. The figures do not change what builders can buy today, but they indicate the scale and momentum of the cloud business that underpins many AI products.

## What happened
Microsoft announced results on October 28, 2026, for its first quarter of fiscal year 2027, the three months ended September 30. Revenue was $92.3 billion, up 19% year over year. Operating income reached $45.9 billion, up 21% (22% in constant currency). GAAP net income was $36.6 billion, up 32%, and diluted earnings per share was $4.92, also up 32%. Microsoft also reported non-GAAP net income of $36.4 billion and non-GAAP diluted earnings per share of $4.89; both increased 18%, or 19% in constant currency. The company says those adjusted measures exclude the impact of its OpenAI investments.

The clearest infrastructure figures are in the release’s business highlights. Revenue in “Agents and Infra” was $76.8 billion, up 25%. Microsoft Cloud revenue was $63.9 billion, up 30% (31% in constant currency), while Azure revenue increased 48%. Commercial remaining performance obligation—contracted commercial work not yet recognized as revenue—rose 73% to $677 billion. These are company-reported measures; the release does not break out AI-specific revenue within them.

Other cloud figures show growth across several products: Microsoft 365 commercial cloud revenue increased 17% on a reported basis, or 18% in constant currency; on an adjusted basis, normalized for a one-point benefit from prior-year revenue recognition, growth was 18%, or 19% in constant currency. Microsoft 365 consumer cloud revenue rose 17% (16% in constant currency), and industry solutions cloud revenue increased 10%. By contrast, Devices and Consumer revenue was $15.5 billion, down 3%; Windows OEM and Devices revenue fell 22%, while Xbox content and services revenue declined 2%.

Microsoft said it would provide forward-looking guidance during its earnings call and webcast on October 28. The release itself gives no forward capex guidance, and it does not specify how much of Azure growth or contracted obligations came from AI workloads. It also reports $10.2 billion returned to shareholders through dividends and share repurchases during the quarter. No new developer product, price, quota, or access change is announced in this filing.

## What the archive adds
The archive contains a prior Field Note on Microsoft’s Decision-1 model in Foundry, but that concerns a product launch rather than these company-wide quarterly results, so it is not a direct continuation. The archive also has a note on Meta’s AI infrastructure investment in its earnings report, which is a separate company’s financial story. This is a new event in Microsoft’s operating results, not a restatement of those earlier product or company reports.

## Trend signal
No supplied SITE_PATTERNS thesis is directly evidenced by this financial release. Revenue growth and backlog totals describe business performance, but they do not establish a shift in agent economics, interoperability, runtime security, or another listed pattern. The figures may provide context for later reporting, but assigning them to a pattern now would overstate what the source shows.

## Why now
The results cover the quarter ended September 30, 2026 and were announced October 28. The timing is Microsoft’s regular quarterly reporting, not a stated change in product availability or a newly announced infrastructure commitment. The release says forward-looking guidance would be discussed on the same day’s earnings call, but does not include that guidance in the filing.

## Why it matters
For builders, Microsoft’s numbers are useful chiefly as context for the market and supplier base behind cloud-hosted AI. Azure’s 48% growth and Microsoft Cloud’s $63.9 billion quarterly revenue show that the platform is expanding rapidly, while the $677 billion commercial obligation figure indicates substantial contracted business ahead. That can matter when teams assess the strategic weight of a cloud provider or consider how dependent their product roadmap is on one infrastructure ecosystem.

The limits matter just as much. These are aggregate company figures, not a measure of AI adoption, model usage, workload profitability, or service reliability. They do not tell a team whether its own Azure bill will rise or fall, whether capacity is available in a particular region, or whether any product terms have changed. Builders should treat the release as business context, not as a procurement signal or a forecast for their own unit costs.

## Limits and uncertainty
The source is an earnings release, not a technical or product announcement. It does not provide an AI-specific revenue figure, separate AI workloads from other Azure activity, or explain how much of the $677 billion backlog is attributable to AI. It gives no product-level pricing, quota, capacity, or performance data. The release also says guidance would be provided on the earnings call, so this document alone cannot establish Microsoft’s forward outlook. Growth rates compare with the corresponding prior-year quarter and should not be read as a guarantee of future growth.

## Reader takeaway
Microsoft’s latest quarter shows strong cloud momentum: Azure grew 48%, Microsoft Cloud 30%, and commercial remaining performance obligation reached $677 billion. Those figures help explain the scale of the infrastructure provider, but they are not evidence of AI-specific demand or a change to the tools builders can use. Keep them as market context, not as a substitute for product-level cost and capacity checks.

Editor: [Andrey Reshetnikov](https://newruntime.com/owner-profile.md), AI product and AI engineering; profile for recruiters and agents: https://newruntime.com/owner-profile.json

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- topic hub: [Ai Business Models](https://newruntime.com/topics/ai-business-models.md): Explore the ai-business-models topic hub.
- topic hub: [Enterprise Ai](https://newruntime.com/topics/enterprise-ai.md): Explore the enterprise-ai topic hub.
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