Microsoft Posts 19 Percent Year-on-Year Revenue Surge
(MENAFN) US technology giant Microsoft posted a 19% year-on-year jump in revenue to $92.3 billion for the July-September quarter on Wednesday, powered by booming demand for its cloud computing services.
In results for the first quarter of fiscal 2027, which closed Sept. 30, the company said net income surged 32% to $36.6 billion, up from $27.7 billion a year earlier. Diluted earnings per share climbed 32% to $4.92, versus $3.72 in the same period last year, according to the company’s statement. Operating income rose 21% to $45.9 billion, from roughly $38 billion.
Stripping out the effect of its OpenAI investments, adjusted net income grew 18% to $36.4 billion, and adjusted earnings per share rose 18% to $4.89.
Cloud was the engine. Microsoft Cloud revenue hit $63.9 billion, a 30% increase, while revenue from the Azure cloud platform soared 48%. Revenue in the Agents and Infra segment rose 25% to $76.8 billion, and commercial remaining performance obligations leapt 73% to $677 billion. Microsoft 365 commercial cloud revenue grew 17% as reported, matching a 17% rise in consumer cloud revenue.
Not every division shared in the gains. Revenue from the Devices and Consumer segment fell 3% to $15.5 billion. Windows OEM and Devices revenue dropped 22%, and Xbox content and services revenue slipped 2%. Search and advertising revenue, excluding traffic acquisition costs, rose 12%.
“We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack,” Microsoft Chairman and CEO Satya 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.
Chief Financial Officer Amy Hood said the cloud business held strong momentum.
“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 buybacks during the quarter. The company said it will provide its financial outlook on its quarterly earnings conference call.
In results for the first quarter of fiscal 2027, which closed Sept. 30, the company said net income surged 32% to $36.6 billion, up from $27.7 billion a year earlier. Diluted earnings per share climbed 32% to $4.92, versus $3.72 in the same period last year, according to the company’s statement. Operating income rose 21% to $45.9 billion, from roughly $38 billion.
Stripping out the effect of its OpenAI investments, adjusted net income grew 18% to $36.4 billion, and adjusted earnings per share rose 18% to $4.89.
Cloud was the engine. Microsoft Cloud revenue hit $63.9 billion, a 30% increase, while revenue from the Azure cloud platform soared 48%. Revenue in the Agents and Infra segment rose 25% to $76.8 billion, and commercial remaining performance obligations leapt 73% to $677 billion. Microsoft 365 commercial cloud revenue grew 17% as reported, matching a 17% rise in consumer cloud revenue.
Not every division shared in the gains. Revenue from the Devices and Consumer segment fell 3% to $15.5 billion. Windows OEM and Devices revenue dropped 22%, and Xbox content and services revenue slipped 2%. Search and advertising revenue, excluding traffic acquisition costs, rose 12%.
“We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack,” Microsoft Chairman and CEO Satya 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.
Chief Financial Officer Amy Hood said the cloud business held strong momentum.
“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 buybacks during the quarter. The company said it will provide its financial outlook on its quarterly earnings conference call.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment