Microsoft Reports Q1 Revenue of $92.3 Billion as Azure Grows 48%
Microsoft reported 19% revenue growth in its first quarter, with Azure cloud services accelerating by 48%, indicating strong demand for AI infrastructure.
U.S. technology giant Microsoft announced its financial results for the first quarter of fiscal year 2027, ended September 30, 2026, on October 28. The company reported total revenue of $92.3 billion, an increase of 19% year-over-year. Operating income rose 21% to $45.9 billion, while net income increased 32% on a GAAP basis to $36.6 billion.
In terms of cloud performance, Microsoft Cloud revenue reached $63.9 billion, growing 30% year-over-year. Notably, Azure revenue accelerated by 48%, reflecting sustained and increasing demand for artificial intelligence infrastructure. Commercial remaining performance obligation (RPO) also surged 73% to $677 billion, indicating strong visibility into future contracted revenue.
It is worth noting that the 32% increase in GAAP net income was partially driven by changes in the valuation of Microsoft's investments in OpenAI. In this quarter, net gains from these investments added $207 million to net income, whereas in the same period last year, they had resulted in a $3.1 billion loss. Excluding this impact, non-GAAP net income was $36.4 billion, up 18% year-over-year.