Microsoft posts 19% revenue growth in fiscal Q1 2027, Azure up 48%

Microsoft reported results for the quarter ended September 30, 2026, with revenue of about $92.3 billion, up 19% from a year earlier, and operating income of $45.9 billion, up 21%. Microsoft Cloud revenue reached roughly $63.9 billion against $49.1 billion a year earlier, and Azure revenue grew about 48%, adding roughly $10.8 billion. GAAP diluted earnings per share were $4.92, up 32%, while non-GAAP results, which strip out the effect of OpenAI investments, showed $4.89, up 18%. Management pointed to some capacity delays in its results and guided to fiscal Q2 revenue of $96 billion to $97.1 billion, with Azure growth of 49% to 50% in constant currency. Gross margin percentage was 68%. The company also had $37.7 billion left under its $60 billion buyback authorization as of September 30, 2026.

1. Revenue was about $92.3 billion, up 19% year over year (company 8-K earnings release for the quarter ended September 30, 2026).
2. Operating income was $45.9 billion, up 21% (up 22% in constant currency).
3. GAAP net income was $36.6 billion, up 32%; GAAP diluted EPS was $4.92; non-GAAP diluted EPS was $4.89, up 18%, excluding OpenAI investment effects.
4. Microsoft Cloud revenue was $63.9 billion versus $49.1 billion a year earlier (Form 10-Q for the quarter ended September 30, 2026).
5. Azure revenue rose $10.8 billion, or 48%, in the quarter (Form 10-Q MD&A).
6. Gross margin percentage was 68%, per the earnings call transcript summary.
7. Outlook for fiscal Q2 2027 includes revenue of $96 billion to $97.1 billion and Azure growth of 49% to 50% in constant currency (earnings call transcript summary).
8. As of September 30, 2026, $37.7 billion remained under the $60.0 billion share repurchase program (Form 10-Q).