Microsoft posts $92.3 billion in revenue as cloud grows 30% in first quarter

Key Facts

Microsoft reported revenue of $92.3 billion in the first quarter of its 2027 fiscal year, up 19% year over year, in results that showed simultaneous growth in its cloud business and operating profit. Diluted earnings per share were $4.92 on a GAAP basis, up 32%, while non-GAAP earnings per share were $4.89, up 18%. The company said its non-GAAP results exclude the impact of its investments in OpenAI. Microsoft shares closed at $531.01 on October 28, 2026, according to EL7 data. After the close, the stock rose about 2.5% in after-hours trading, according to Investing.com.

Cloud was a standout in the results, with Microsoft Cloud revenue reaching about $63.9 billion, up 30% year over year. Remaining performance obligations rose 73% to $677 billion, a measure of contracted business for which the company has not yet recorded revenue. Growth in this balance points to an expansion of the company’s future commercial obligations, alongside growth in revenue recorded during the quarter. Chief Executive Satya Nadella said the company was working to help organizations build their own intelligence. He added that Microsoft was "turning our innovation into increased adoption and real-world impact across industries."

Revenue growth flowed through to operating income, which reached $45.9 billion, up 21% from the same period a year earlier. GAAP net income rose 32% to $36.6 billion. GAAP diluted earnings per share also rose 32% to $4.92, while non-GAAP earnings per share increased 18% to $4.89. The company says the latter measure excludes the impact of its investments in OpenAI, explaining the difference from the GAAP figure. Microsoft returned $10.2 billion to shareholders during the quarter through dividends and share buybacks.

The quarterly results come against a backdrop in which beating earnings estimates has not previously been enough to ensure a rise in the stock. Before the announcement, Investing.com noted that Microsoft had beaten earnings estimates in each of its previous four quarterly reports. Even so, the stock fell after three of those four reports. The comparison shows that investors’ response depended on more than whether estimates were beaten, extending to their expectations for the business outlook and the following period. After the October 28 results, an Interactive Brokers analyst said investor interest was focused on guidance ahead, saying: "We are still waiting for concrete guidance on next quarter and beyond."