Microsoft’s Revenue from OpenAI Arrangements Reaches $10 Billion in a Quarter

Key Facts

Microsoft recorded revenue of $10.0 billion from its commercial arrangements with OpenAI in the three months ended September 30, 2026, according to its filing with the U.S. Securities and Exchange Commission. The total includes revenue-sharing payments between the two companies, according to Microsoft’s disclosure. This came in a quarter when the company’s total revenue was $92.3 billion, up 19% from the same period a year earlier. Chief Financial Officer Amy Hood said results exceeded expectations for revenue, operating income and earnings per share. The OpenAI figure stands out in Microsoft’s results as one source of income tied to its cloud computing business and the commercial agreement between the companies.

Microsoft’s revenue from its work with OpenAI was about $24.1 billion in the fiscal year ended June 2026, averaging about $6 billion a quarter, according to GeekWire. That puts the latest quarterly revenue above the quarterly average recorded in that fiscal year. The quarterly total also exceeded Xbox revenue of $5.4 billion and search and advertising revenue of $6.6 billion in the quarter ended September 30. The search and advertising line includes the Bing search engine, according to GeekWire, so the comparison does not represent Bing revenue alone. Microsoft did not disclose how much revenue was attributable to each component of its commercial arrangement with OpenAI.

The arrangements include revenue-sharing payments, as well as OpenAI’s use of Azure services to train and run its models, according to GeekWire. Microsoft did not specify the value of each component separately, nor did it disclose OpenAI’s share of Azure growth. Azure revenue rose 48% in the quarter, exceeding the company’s previous forecast range of 44% to 45%, according to the report. Microsoft’s metrics showed Azure growth accelerating to 48% in the first quarter of its fiscal 2027, from 42% in the previous quarter. Microsoft said Azure revenue was $33.2 billion and that growth exceeded both Wall Street’s expectations and the company’s own forecast.

Across its cloud business, Microsoft Cloud revenue was about $63.9 billion in the quarter, up 30% year over year, according to the company. Amy Hood said Microsoft had started its fiscal year strongly, with Microsoft Cloud revenue growth accelerating to 30%. The figures show the cloud business expanding alongside higher Azure revenue, while the disclosures do not specify how much of that is attributable to OpenAI. On the financial relationship between the two companies, Microsoft’s receivables from OpenAI rose to $7.2 billion on September 30, compared with $6.0 billion on June 30, 2026. The receivables reflect outstanding balances between the parties at the end of the two periods, according to Microsoft’s filing with the commission.

Alongside its business growth, Microsoft warned of risks from relying on external AI providers. The company said it has “limited visibility or control” over how those providers design, train, secure and test their models, according to GeekWire. It also warned that the expected benefits of partnerships may not materialize or may not continue. In after-hours trading on October 28, 2026, Microsoft shares rose more than 4% after the results were announced, according to Investing.com. The move followed the release of quarterly figures that included total revenue growth and accelerating Azure growth, as well as the disclosure of revenue from the arrangements with OpenAI.

For the second fiscal quarter of fiscal 2027, Microsoft forecast Azure growth of between 49% and 50% in constant currency, following growth of 48% in the first quarter. It also forecast total revenue of between $96 billion and $97.1 billion in the second quarter. The company estimated capital expenditure of more than $50 billion over the same period. The forecasts put cloud growth and infrastructure spending at the center of the coming period of the fiscal year. The projected figures reflect Microsoft’s guidance for the second quarter, while first-quarter results showed revenue already recorded and Azure growth.