(Photo courtesy of Anadolu)
ISTANBUL — Microsoft reported a 19 percent increase in revenue to $92.3 billion in the July-September quarter, supported by strong demand for its cloud computing services.
In its financial results released Wednesday for the first quarter of fiscal year 2027, which ended September 30, the US technology giant said net income climbed 32 percent to $36.6 billion from $27.7 billion in the same period last year.
Diluted earnings per share also increased 32 percent to $4.92 from $3.72, while operating income rose 21 percent to $45.9 billion from approximately $38 billion a year earlier.
Excluding the impact of its investments in OpenAI, Microsoft’s adjusted net income grew 18 percent to $36.4 billion, while adjusted earnings per share increased by the same percentage to $4.89.
The company’s cloud business remained a major growth driver, with Microsoft Cloud revenue surging 30 percent year-on-year to $63.9 billion.
Revenue from Azure, Microsoft’s cloud computing platform, jumped 48 percent, reflecting continued demand for cloud infrastructure and related services.
Microsoft’s Agents and Infra segment posted a 25 percent revenue increase to $76.8 billion, while commercial remaining performance obligations soared 73 percent to $677 billion.
Microsoft 365 commercial cloud revenue expanded 17 percent on a reported basis, matching the 17 percent growth recorded in consumer cloud revenue.
However, the company’s Devices and Consumer segment saw revenue decline 3 percent to $15.5 billion.
Windows OEM and Devices revenue dropped 22 percent, while Xbox content and services revenue slipped 2 percent.
Search and advertising revenue, excluding traffic acquisition costs, increased 12 percent during the quarter.
Microsoft Chairman and Chief Executive Officer Satya Nadella attributed the company’s performance to its expanding technology capabilities and efforts to provide customers with greater flexibility and efficiency.
“We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack,” Nadella said.
“By helping organizations build and own their own intelligence, and earning trust through agent safety and security, we are translating our innovation into growing adoption and real-world impact across every industry,” he added.
Microsoft Chief Financial Officer Amy Hood said the company’s cloud operations continued to deliver strong results at the start of the fiscal year.
“We delivered a strong start to the fiscal year with Microsoft Cloud revenue of $63.9 billion, with growth accelerating to 30% (up 31% in constant currency) year-over-year,” Hood said.
“Results exceeded expectations across revenue, operating income, and earnings per share,” she added.
Microsoft also returned $10.2 billion to shareholders through dividends and share repurchases during the quarter.
The company said it would provide its financial outlook during its quarterly earnings conference call.
