Microsoft reported revenue of $92.3 billion for its fiscal first quarter of 2027, the three months ended Sep 30, 2026. That's up 19% from a year earlier. Operating income rose 21% to $45.9 billion.
On a GAAP basis, net income rose 32% to $36.6 billion, or $4.92 per diluted share. Microsoft also reports a non-GAAP figure that strips out the effect of its OpenAI investments: $36.4 billion, or $4.89 a share, up 18%. The company said its OpenAI investments added $207 million to net income this quarter, after cutting it by $3.1 billion in the same quarter last year.
Cloud led the quarter. Azure revenue increased 48%, and total Microsoft Cloud revenue reached $63.9 billion, up 30%. The company's commercial remaining performance obligation (contracted revenue not yet recognized) increased 73% to $677 billion.
The consumer side shrank. The Devices and Consumer segment brought in $15.5 billion, down 3%, and Windows OEM and Devices revenue decreased 22%.
Microsoft's cash flow statement shows $39.4 billion in additions to property and equipment for the quarter, compared with $19.4 billion a year earlier. That figure doesn't include finance leases. The company returned $10.2 billion to shareholders through dividends and buybacks.
"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," chairman and CEO Satya Nadella said in the release.