Microsoft reported strong financial results for the first quarter of fiscal year 2027, ending September 30, 2026. The tech giant saw revenue increase by 19% to $92.3 billion, while operating income rose by 21% to $45.9 billion. Net income surged by 32% on a GAAP basis to $36.6 billion, and by 18% on a non-GAAP basis to $36.4 billion, excluding the impact of OpenAI investments.
Satya Nadella, Microsoft's CEO, highlighted the company's focus on delivering greater capability, choice, control, and cost efficiency across its entire stack. He emphasized the importance of helping organizations build and own their own intelligence, while earning trust through agent safety and security. Amy Hood, Microsoft's CFO, noted that Microsoft Cloud revenue accelerated to 30% year-over-year growth, reaching $63.9 billion.
Key business highlights included a 73% increase in commercial remaining performance obligation to $677 billion, a 48% rise in Azure revenue, and an 18% increase in Microsoft 365 commercial cloud revenue. However, the Devices and Consumer segment saw a 3% decline in revenue to $15.5 billion, with notable decreases in Xbox content and services revenue and Windows OEM and Devices revenue.
Microsoft returned $10.2 billion to shareholders through dividends and share repurchases during the quarter. The company will provide forward-looking guidance during its earnings conference call and webcast, scheduled for October 28, 2026.