Microsoft announced that its total revenue grew 19 percent to $92.3 billion for the first quarter of fiscal year 2027, which concluded on September 30.
Net income increased 32 percent to $36.6 billion, compared to $27.7 billion during the same period a year earlier. Diluted earnings per share rose 32 percent to $4.92, up from $3.72 last year, while operating income climbed 21 percent to $45.9 billion from approximately $38 billion.
Excluding the financial impact of its investments in OpenAI, adjusted net income rose 18 percent to $36.4 billion. Adjusted earnings per share similarly increased 18 percent to $4.89.
Cloud computing drove growth for the firm. Microsoft Cloud revenue reached $63.9 billion, representing a 30 percent year-on-year increase, while revenue from the Azure platform surged 48 percent.
Revenue from the Agents and Infra segment increased 25 percent to $76.8 billion. Commercial remaining performance obligations jumped 73 percent to reach $677 billion.
Microsoft 365 commercial cloud revenue grew 17 percent on a reported basis, matching a 17 percent increase in consumer cloud revenue. Search and advertising revenue, excluding traffic acquisition costs, increased 12 percent.
The Devices and Consumer segment experienced a three percent decline in revenue to $15.5 billion. Windows OEM and Devices revenue fell 22 percent, and Xbox content and services revenue decreased two percent.
"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," Nadella added.
Microsoft Chief Financial Officer Amy Hood said the 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 percent year-over-year," Hood said, adding that results exceeded expectations across revenue, operating income, and earnings per share.
The company reported returning $10.2 billion to shareholders through dividends and share repurchases over the course of the quarter. Microsoft stated that its financial outlook would be provided during its quarterly earnings conference call.
