Microsoft (MSFT) Q1 2027 Earnings
Non-GAAP EPS excludes net gains from investments in OpenAI, which increased GAAP net income by $207 million and GAAP diluted EPS by $0.03 (GAAP diluted EPS was $4.92); prior-year quarter GAAP results included OpenAI net losses of $3.1 billion ($0.41 per share).
How Did MSFT Stock React to Q1 2027 Earnings?
Did MSFT Beat Earnings? Q1 2027 Results
Yes. Microsoft reported Q1 2027 earnings of $4.89 a share on Oct 28, 2026, beating the $4.72 consensus estimate by 3.6%. Revenue was $92.3B against a $90.8B estimate.
Microsoft opened fiscal 2027 on strong footing, posting adjusted non-GAAP EPS of $4.89 for the quarter ended September 30, 2026, beating the $4.72 consensus by 3.60% and extending its streak of consensus EPS beats to six consecutive quarters. Revenue climbed 18.8% year over year to $92.28 billion, ahead of the $90.75 billion estimate, with the primary engine being an accelerating cloud business: Microsoft Cloud revenue reached $63.90 billion, growing 30% and marking an acceleration from recent trends. Azure alone grew 48% to $33.16 billion, reflecting surging demand for AI infrastructure that has also driven capital expenditure sharply higher, with property and equipment additions reaching $39.37 billion, more than double the $19.39 billion spent in the year-ago period. That infrastructure buildout is increasingly underpinned by long-term contracted demand, as commercial remaining performance obligations rose 73% to $677.00 billion. CFO Amy Hood characterized the results as exceeding expectations across revenue, operating income, and earnings, and said she would provide forward-looking guidance on the company's earnings call.
- Microsoft Cloud revenue of $63.9 billion, up 30% (31% in constant currency) with accelerating growth
- Azure revenue up 48%
- Microsoft 365 commercial cloud revenue up 18% adjusted (17% reported); Microsoft 365 consumer cloud up 17%
- Search and advertising revenue excluding traffic acquisition costs up 12%
- Industry solutions cloud revenue up 10%
- Net gains from OpenAI investments of $207 million versus $3.1 billion net losses in the prior-year quarter boosted GAAP net income growth to 32%
- Windows OEM and Devices revenue down 22% and Xbox content and services down 2% weighed on Devices and Consumer
“We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack.”
Microsoft CEO, on the earnings call
What Is Microsoft's Outlook?
Microsoft did not include quantitative guidance in the press release; the company stated it would provide forward-looking guidance on its earnings conference call and webcast. CFO Amy Hood characterized the quarter as a strong start to the fiscal year with Microsoft Cloud growth accelerating.
MSFT YoY Financials
| Metric | Q1 2027 | Q1 2026 | Year over year |
|---|---|---|---|
| Revenue | $92.3B | $77.7B | +18.8% |
| Gross Profit | $62.6B | $53.6B | +16.7% |
| Operating Income | $45.9B | $38.0B | +21.0% |
| Net Income | $36.6B | $27.7B | +32.0% |
MSFT Revenue by Segment
When Does Microsoft Report Next?
Figures from SEC filings and company reports. Not investment advice.