Microsoft Reports Q1 FY27 Results: Revenue Up 19%, Azure Grows 48%, Commercial RPO Surges 73%
Microsoft's Q1 FY27 revenue reached $92.3 billion, with Azure growing 48% and commercial remaining performance obligations rising to $677 billion, indicating strong AI infrastructure demand.
US technology company Microsoft Corp. announced its financial results for the first quarter of fiscal year 2027, ended September 30, 2026, on October 28, 2026. Total revenue for the quarter was $92.3 billion, an increase of 19% year-over-year. Operating income rose 21% to $45.9 billion. On a GAAP basis, net income increased 32% to $36.6 billion, with diluted earnings per share at $4.92. Excluding the impact from investments in OpenAI, non-GAAP net income was $36.4 billion, up 18%.
Cloud services remained the primary growth driver. Microsoft Cloud revenue reached $63.9 billion, growing 30% year-over-year. Specifically, Azure revenue increased by 48%, reflecting sustained acceleration in demand for artificial intelligence infrastructure. Additionally, commercial remaining performance obligations surged 73% to $677 billion, a key metric often viewed as a forward-looking indicator of future revenue visibility.
In terms of capital return, Microsoft distributed $10.2 billion to shareholders through dividends and share repurchases during the quarter. CEO Satya Nadella stated that the company is helping organizations build and own their own intelligence, translating innovation into real-world impact across industries. CFO Amy Hood noted that results exceeded expectations across revenue, operating income, and earnings per share.