Microsoft announced its financial results for the first quarter of its fiscal year 2027, ending September 30, 2026, recording revenues of $92.3 billion, an increase of 19% compared to the same period of the previous year.
The results announced on October 28 were supported by the strong growth of services Cloud computing, led by Azure, recorded a 48% increase in revenue, reflecting continued institutional demand for computing services and artificial intelligence platforms.
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Microsoft profits rise by 32%
Official data showed operating income rising by 21% to 45.9 Billion dollars, while net profit according to American accounting standards recorded $36.6 billion, a growth of 32%.
Diluted earnings per share also increased to $4.92, compared to the same period of the previous fiscal year.
Microsoft also presented adjusted financial results that exclude the impact Its investment in OpenAI, with adjusted net profit reaching $36.4 billion, up 18%.
The separation between reported and adjusted results is necessary to understand operating performance, since revaluation of investments can affect accounting profits without necessarily reflecting a change in Similar in sales of products and services.
Azure is getting investors' attention
Microsoft Cloud's total revenue was $63.9 billion, up 30% year over year, while Azure had 48% growth.
The importance of these numbers is that the demand for Azure services is no longer just related By hosting traditional applications and databases, it now includes running artificial intelligence models, processing big data, and developing software agents for companies.
Meanwhile, Microsoft 365 commercial cloud revenue rose 17% according to reported figures Consumer cloud services grew at a similar rate.
These results demonstrate that the enterprise business continues to be a key driver of Microsoft's growth, as the company continues to integrate AI tools into its existing products.
Windows is facing market pressure Devices
Performance was not balanced across all activities.
Windows OEM and hardware revenues declined 22%, while Xbox content and services revenues declined 2%.
Devices and Consumer segment revenues also decreased by 3% to $15.5 billion.
These results reveal the widening gap between growth The rapid growth of the cloud business and the pressures on some activities related to devices and consumer markets.
The numbers alone do not mean a decline in the popularity of Windows, but they indicate that the most influential sources of growth in the company's results currently come from software and cloud services.
Future commercial contracts worth hundreds of billions
Microsoft announced that its remaining commercial performance obligations reached $677 billion, an increase of 73%.
This indicator represents the value of contracted revenues that have not yet been recognized in accounting, and does not mean that they will be collected Completely within a short period.
For investors, this number provides insight into the volume of future contracted demand, but it does not eliminate the risks associated with the costs of expanding data centers and providing infrastructure.
What does this mean for companies and developers?
Azure's growth signals a continuation The market for enterprise AI services is expanding.
For companies that rely on Microsoft 365 and Azure, deeper integration of Copilot and software agents may open up more opportunities for automation, data analysis, and application development.
But the success of these technologies will not be measured by the number of features Not only new ones, but also the cost of using them, the ease of integrating them into existing systems, and their ability to achieve actual productivity.
What's next?
Azure growth, infrastructure spending, and Microsoft 365 product performance will continue to be top indicators for investors to watch over the coming quarters.
And you will need The company aims to maintain the pace of cloud expansion, while achieving a balance between huge investments and operational returns.
