Microsoft revenue rises 19% to $92.3B in July-Sep

By Gokhan Ergocun

ISTANBUL (AA) - US technology firm Microsoft reported Wednesday that its revenue rose 19% year-on-year to $92.3 billion in the July-September quarter, driven by strong growth in its cloud computing business.

The company said in its financial results for the first quarter of fiscal year 2027, which ended Sept. 30, that net income increased 32% to $36.6 billion from $27.7 billion a year earlier.

Diluted earnings per share rose 32% to $4.92, compared with $3.72 in the same period last year, according to the company's statement.

Operating income climbed 21% to $45.9 billion from approximately $38 billion a year earlier.

Excluding the impact of investments in OpenAI, Microsoft's adjusted net income rose 18% to $36.4 billion, while adjusted earnings per share increased 18% to $4.89.

The company said its Microsoft Cloud revenue reached $63.9 billion, up 30% year-on-year, while revenue from its Azure cloud computing platform surged 48%.

Revenue from its Agents and Infra segment increased 25% to $76.8 billion, while commercial remaining performance obligations jumped 73% to $677 billion.

Microsoft 365 commercial cloud revenue grew 17% on a reported basis, while consumer cloud revenue rose 17%.

Meanwhile, revenue from the Devices and Consumer segment declined 3% to $15.5 billion.

Windows OEM and Devices revenue fell 22%, while Xbox content and services revenue decreased 2%. Search and advertising revenue, excluding traffic acquisition costs, increased 12%.

"We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack," Microsoft Chairman and CEO Satya Nadella said.

"By helping organizations build and own their own intelligence, and earning trust through agent safety and security, we are translating our innovation into growing adoption and real-world impact across every industry," he added.

Microsoft Chief Financial Officer Amy Hood said the company's cloud business maintained strong momentum.

"We delivered a strong start to the fiscal year with Microsoft Cloud revenue of $63.9 billion, with growth accelerating to 30% (up 31% in constant currency) year-over-year," Hood said.

"Results exceeded expectations across revenue, operating income, and earnings per share," she added.

Microsoft also said it returned $10.2 billion to shareholders through dividends and share repurchases during the quarter.

The company said it would provide its financial outlook during its quarterly earnings conference call.

Gökhan Ergöçün