In brief
In its fiscal first quarter, Microsoft reported record revenue and profit, driven by a 30% rise in Microsoft Cloud and an AI‑investment gain. The company returned $10.2 billion to shareholders and emphasized AI and security in its future plans.
Microsoft announced on 29 Oct 2026 that its fiscal first‑quarter revenue rose 19 % year‑on‑year to $92.28 billion, while net income climbed 32 % to $36.63 billion, according to Xinhua and WAM.
The increase came mainly from cloud services, with Microsoft Cloud revenue hitting $63.9 billion, up 30 % from the same period last year, and Azure’s revenue jumping 48 % to $33.17 billion, the company said.
Other units also grew: Microsoft 365 commercial cloud revenue rose 17 % and Microsoft 365 consumer cloud revenue increased 17 %. Search and advertising revenue, excluding traffic acquisition costs, rose 12 %.
Microsoft’s investment in AI startup OpenAI generated a net gain of $207 million this quarter, compared with a $3.09 billion loss in the previous year, WAM reported. Adjusted net income, excluding OpenAI impacts, was $36.42 billion, up 18 %.
The company returned $10.2 billion to shareholders, issuing dividends and buying back shares, according to Xinhua, as it ends its first quarter of fiscal 2027.
Amy Hood, Chief Financial Officer, said the results exceeded expectations on revenue, operating income, and earnings per share. She highlighted 30 % growth in Microsoft Cloud.
Satya Nadella, CEO, said Microsoft remains focused on helping customers build AI systems, improving efficiency, and strengthening security, turning innovation into impact across industries.
