Microsoft posts higher quarterly revenue and cloud growth
Microsoft reported first-quarter fiscal 2027 revenue of $92.3 billion, up 19 per cent from a year earlier and above analyst forecasts. Net income rose to between $33.6 billion and $36.6 billion, with sources giving different figures. Azure cloud revenue grew 48 per cent to about $33.2 billion. Free cash flow reached $18.6 billion, and shares rose about 2.6 to 4 per cent in extended trading. CEO Satya Nadella introduced lower-cost AI models and the Copilot Cowork agent.
Key facts
- Quarterly capital spending reached a record $45.2 billion, above the prior quarter but below analyst projections.
- Microsoft expects total capital expenditures for calendar 2026 of about $175 billion.
- Microsoft Cloud revenue totaled $63.9 billion, up 30 per cent; OpenAI services contributed $10 billion.
- Devices and Consumer segment revenue fell 3 per cent to $15.5 billion.
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Why it matters
Strong cloud growth and heavy spending on AI infrastructure are central to Microsoft's results.
What changed
First published from CNA, The Verge, Fortune and TechCrunch