The Quarter in Brief
Microsoft reported its first quarter of fiscal 2027, the three months ended September 30, 2026, after the market closed on October 28. Revenue was $92.3 billion, up 19% from $77.7 billion a year earlier. Reported earnings per share were $4.92, up 32% from $3.72. Adjusted earnings per share, the company's non-GAAP measure that leaves out gains and losses on its investment in OpenAI, were $4.89, up 18% from $4.13.
Both figures were ahead of what analysts had expected: about $90.6 billion of revenue and about $4.72 of adjusted earnings per share. What set the quarter apart was the pace of Azure, Microsoft's cloud computing platform, whose revenue grew 48% to $33.2 billion, faster than the 45% the company had forecast in July. It was also the first quarter under Microsoft's new reporting structure of two segments, Agents and Infra and Devices and Consumer, and the cash it spent on property and equipment, mostly data centres, servers and chips, doubled from a year earlier to $39.4 billion.