Microsoft reported revenue of $92.3 billion for the quarter ended September 30, 2026, a 19 percent increase from a year earlier, as cloud computing and artificial-intelligence services continued to expand. The October 28 results cover the first quarter of the company’s 2027 fiscal year, not fiscal 2026.
Microsoft Cloud revenue reached $63.9 billion, up 30 percent, while Azure and other cloud-services revenue increased 48 percent. Operating income rose 21 percent to $45.9 billion. Those results show the scale of the company’s cloud business, but they do not establish that all revenue or profit growth came from a single AI product.
Reported net income was $36.6 billion, up 32 percent. Excluding the impact of investments in OpenAI, Microsoft reported adjusted net income of $36.4 billion, an 18 percent increase. That distinction matters when comparing underlying operating performance with the headline profit increase.
On the earnings call, chief executive Satya Nadella said Microsoft added 24 data centres across five continents during the quarter. He described Azure demand across large enterprises and smaller businesses, involving conventional cloud services as well as AI workloads. Those comments are management’s assessment, rather than an independent measurement of future demand.
The company’s filing also identifies investment in data-centre infrastructure and AI capacity as important drivers of costs and commitments. Strong sales therefore need to be read alongside the expense of supplying the computing power customers require.
Sources
- Microsoft FY27 Q1 earnings release and webcast
- Microsoft quarterly filing
- Microsoft Redmond campus gallery
- Microsoft editorial image permissions
Source-based reporting by Tito Baron Media.
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