Microsoft Reports $10 Billion in Revenue From OpenAI Commercial Agreements for the Quarter
Key Facts
Microsoft recorded $10.0 billion in revenue from its commercial arrangements with OpenAI during the three months ended September 30, 2026, according to a filing with the U.S. Securities and Exchange Commission. The amount includes revenue-sharing payments, the company said. The disclosure was part of its fiscal first-quarter 2027 results, in which Microsoft’s total revenue reached $92.279 billion. Total revenue rose 19% from the same period a year earlier. The company did not specify how much of its OpenAI revenue was attributable to Azure.
The filing lists revenue from commercial arrangements with OpenAI separately from the company’s total revenue, without detailing its components or allocation across Microsoft products. In the fiscal year ended June 30, 2026, the company recorded $24.1 billion from these arrangements, including revenue-sharing payments. That means the figure reported for the latest quarter follows annual revenue of that scale in the previous fiscal year, though the accounting periods differ. Microsoft also did not explicitly link the quarterly amount to Azure revenue. The platform’s growth remains a separate indicator of cloud computing performance.
Azure revenue was $33.165 billion in the quarter ended September 30, compared with $22.384 billion in the same quarter of 2025. Microsoft said the platform’s revenue increased 48% year over year in the first quarter of fiscal 2027. More broadly, Microsoft Cloud revenue reached $63.9 billion, up 30%, or 31% in constant currency. Microsoft Cloud revenue totaled $214.4 billion in fiscal 2026, growing 27% year over year. The company also said Azure and other cloud services grew 41% in that fiscal year, surpassing $100 billion for the first time.
The financial relationship between the two companies includes outstanding receivables alongside arrangement revenue and investment gains. Microsoft’s receivables from OpenAI totaled $7.2 billion on September 30, 2026, compared with $6.0 billion on June 30 of the same year. These are balances due between the two parties, not additional revenue on top of the amount reported for commercial arrangements. In a separate line item, Microsoft said net gains on its OpenAI investments increased net income by $207 million and diluted earnings per share by $0.03. The company also reported earnings per share under accounting principles separately from its adjusted measure.
Diluted earnings per share under accounting principles was $4.92, while the adjusted figure was $4.89, excluding investment gains and losses in OpenAI. Among business indicators, revenue from the Agents and Infra segment was $76.8 billion, up 25% year over year. Commercial remaining performance obligations rose 73% to $677 billion on September 30, 2026. Microsoft returned $10.2 billion to shareholders through dividends and share repurchases in the first quarter of fiscal 2027. It also disclosed funding commitments tied to its investment in OpenAI of $13.0 billion, of which $12.0 billion had been funded as of September 30.
On October 28, 2026, Microsoft shares closed at $531.01 in regular trading, according to EL7 data. That was the day the company announced its quarterly results; the available figures here do not include the stock’s move after the close. Azure and Microsoft Cloud results provide context for the performance of the company’s cloud businesses in the same period, while the disclosures do not specify OpenAI’s contribution to that revenue. The company’s separate reporting of commercial revenue, receivables and investment gains reflects the different nature of these items in its accounts. Commercial remaining performance obligations, meanwhile, point to future contracted business and are not revenue recognized in the quarter.