MSFT stock: Microsoft Q1 revenue $92.3bn, Azure up 48%

What happened. On 28 October Microsoft reported results for the quarter ended 30 September 2026. Revenue was $92.3 billion (+19%) and operating income $45.9 billion (+21%). GAAP net income was $36.6 billion (+32%) and GAAP EPS $4.92.

Adjusted profit. Microsoft also reports figures that exclude its investments in OpenAI. On that basis net income was $36.4 billion (+18%) and EPS $4.89 (+18%). A year ago the OpenAI investments cost the company money, so the adjusted figures are easier to compare. The Bloomberg consensus quoted by Yahoo Finance was lower: $4.27 a share and $90.6 billion in revenue.

Cloud and Azure. Microsoft Cloud revenue grew 30% to $63.9 billion, and growth accelerated. Azure grew 48% (also 48% in constant currency), with revenue of $33.2 billion. Analysts polled by Bloomberg had expected $32.2 billion for Azure. Commercial remaining performance obligation (RPO) rose 73% to $677 billion. Yahoo Finance listed an RPO expectation of $705.6 billion, but we cannot confirm it is the same measure, so we do not compare them.

New segments. This is the first report under the new two-segment structure. Agents and Infra brought in $76.8 billion (+25%). Devices and Consumer brought in $15.5 billion (-3%): Windows OEM and devices revenue fell 22%, while search and advertising excluding traffic acquisition costs rose 12%.

AI spending. The cash flow statement shows $39.4 billion spent on property and equipment, against $19.4 billion a year earlier. Analysts expected capital expenditure including leases of $45.9 billion. The definitions differ, so we do not compare the two numbers. Microsoft returned $10.2 billion to shareholders through dividends and buybacks.

Market reaction. Per Yahoo Finance, the shares closed at $531.01 and traded at $553.00 (+4.14%) in after-hours trading at 4:06 pm ET. That is a snapshot of one moment, and the price will keep moving.

What we do not know. The outlook for coming quarters and the capex plan: Microsoft says it will give them on the call, and they are not in the release. We also do not know how the market will trade on 29 October. This is a summary, not a forecast or advice.

Confirmed facts

• Microsoft said revenue for the quarter ended 30 September 2026 was $92.3 billion (+19%) and operating income $45.9 billion (+21%).^[1]
• GAAP diluted EPS was $4.92 (+32%) and adjusted EPS, excluding the impact from OpenAI investments, was $4.89 (+18%, +19% in constant currency). Adjusted net income was $36.4 billion.^[1]
• Microsoft Cloud revenue was $63.9 billion, up 30% (31% in constant currency), with growth accelerating.^[1]
• Azure revenue grew 48%, to $33.165 billion from $22.384 billion a year earlier.^[1]
• Commercial remaining performance obligation rose 73% to $677 billion.^[1]
• Agents and Infra revenue was $76.8 billion (+25%) and Devices and Consumer revenue $15.5 billion (-3%).^[1]
• Windows OEM and devices revenue fell 22%, and search and advertising revenue excluding traffic acquisition costs rose 12%.^[1]
• Additions to property and equipment in the cash flow statement were $39.367 billion, against $19.394 billion a year earlier.^[1]
• Microsoft returned $10.2 billion to shareholders through dividends and share repurchases.^[1]
• Microsoft will give forward-looking guidance on the call and webcast at 2:30 pm Pacific (5:30 pm Eastern), not in the release.^[1]
• Bloomberg consensus: EPS $4.27, revenue $90.6 billion, Azure $32.2 billion, capital expenditure including leases above $45.9 billion, RPO $705.6 billion.^[2]
• This is Microsoft's first report under the new two-segment structure: Agents and Infra, and Devices and Consumer.^[2]
• The shares closed at $531.01 and traded at $553.00 (+$21.99, +4.14%) after hours at 4:06 pm ET.^[2]

Implications

• ConfirmedAzure revenue and overall cloud growth accelerated while spending on data centers rose sharply.
• Our readingRevenue and adjusted EPS came in above the Bloomberg consensus quoted by Yahoo Finance.
• Our readingThe outlook and capex plan on the call will likely move the market more than the quarter's numbers.

Still unknown

• Revenue and capex guidance for the next quarter and year: it comes on the call.
• How the shares trade in the regular session on 29 October: after-hours is not the final word.
• Whether the $677 billion commercial RPO is comparable to the $705.6 billion expectation.

Who it affects

United States, Worldwide. People who follow MSFT stock, Azure and AI spending, and investors who hold big tech

Sources

1. Microsoft Investor Relations: Microsoft Announces First Quarter Results October 28, 2026 · official
2. Yahoo Finance: Microsoft earnings live: Microsoft to report Q1 earnings with Wall Street looking for further Azure growth October 28, 2026 · media