Microsoft reported revenue of $92.279 billion for its first fiscal quarter ended 30 September 2026, up 19% year on year. Its 28 October earnings release shows stronger cloud sales alongside an important accounting distinction: reported earnings grew faster than the adjusted measure that removes OpenAI investment effects.
Microsoft Cloud revenue reached $63.9 billion, up 30%, while Azure revenue increased 48%. These figures describe the completed quarter, not a forecast for the following period.
Quarterly figures and their basis
Source: Microsoft’s official FY27 Q1 earnings release and reconciliation, observed 29 October 2026 at 00:14 UTC (05:44 IST). Amounts below are US dollars.
| Measure | Quarter ended 30 September 2026 | Year-on-year change | Primary evidence |
|---|---|---|---|
| Revenue | $92.279 billion | +19% | Income statement |
| Net income — reported GAAP | $36.629 billion | +32% | GAAP reconciliation |
| Net income — adjusted non-GAAP | $36.422 billion | +18% | Non-GAAP reconciliation |
| Diluted earnings per share | $4.92 reported; $4.89 adjusted | +32% reported; +18% adjusted | EPS reconciliation |
| Microsoft Cloud revenue | $63.9 billion | +30% | Business highlights |
| Azure revenue growth | 48% | Year-on-year growth rate | Product metrics |
The release is also available on Microsoft’s official newsroom, observed 29 October 2026 at 00:14 UTC (05:44 IST). This is the same issuer release, not independent corroboration.
Why the profit comparison needs two columns
GAAP means the standard accounting basis used in the reported financial statements. Non-GAAP is a supplementary company-defined measure with specified adjustments; it should not replace the reported result.
Microsoft’s current-quarter OpenAI investment gains added $207 million to reported net income and $0.03 to diluted EPS. Removing those gains produces the slightly lower adjusted figures. In the corresponding prior-year quarter, OpenAI investment losses reduced net income by $3.086 billion and EPS by $0.41. The adjusted comparison removes that loss too.
The direction therefore differs between the two periods. It is misleading to describe the adjustment simply as a cost being added back this quarter, or to combine the current reported result with last year’s adjusted base. A like-for-like comparison must use reported against reported, or adjusted against adjusted.
How to read the cloud numbers
Revenue records sales; net income is what remains after the relevant expenses and taxes. Neither is interchangeable with a growth percentage. A business can expand revenue while producing a different rate of profit growth, so the useful question is which measure each headline is describing.
Readers should also avoid adding a product metric to a broader cloud metric to create an unofficial total. The release presents them as separate views of the business. The company has recast prior-period segment figures for its FY27 reporting changes, another reason to use the comparative figures in the current release rather than an older presentation.
What to watch
The next check is subsequent official outlook information and whether cloud expansion continues to translate into earnings on a consistent basis. This report covers the unaudited quarter already released. It makes no claim about a share-price response, analyst consensus or a guaranteed return.
Official source observations
- Microsoft Corporation — observed 2026-10-29T00:14:58.596Z.
- Microsoft Corporation — observed 2026-10-29T00:14:59.032Z.
Recorded source observation: . This is a source-check timestamp, not a market quote or a new article update.