Summary
After the U.S. close on October 28, 2026, Microsoft reported FY2027 Q1 results (ended September): revenue of $92.28B, up 19% year over year and beating estimates; Azure revenue of $33.17B, up 48%; capex of $45.2B; shares jumped nearly 3% after hours.
Event Overview
- Date: After the U.S. market close on October 28, 2026, Microsoft officially released its FY2027 first-quarter earnings (ended September).
- Party: Microsoft (MSFT.US).
- Event: Per CLS (Cailianshe) and Communications World, Microsoft posted quarterly revenue of $92.28B, up 19% year over year and above the 17% analyst forecast; net income attributable to shareholders was $36.629B, up 32%; adjusted EPS of $4.89 beat market expectations. Shares jumped nearly 3% in after-hours trading following the report.
- Key highlight: Per CLS and Communications World, Azure quarterly revenue reached $33.17B, up 48% year over year, above the 44% expected by analysts and accelerating from the 43% growth rate of the prior quarter; Azure revenue was disclosed in dollar terms for the first time this quarter and became Microsoft's largest single business.
Key Information
| Item | Detail |
|---|---|
| Reporting period | FY2027 Q1 (ended September) |
| Release timing | After U.S. close, October 28, 2026 |
| Revenue | $92.28B, +19% YoY, above the 17% analyst forecast |
| Net income attributable to shareholders | $36.629B, +32% YoY |
| Adjusted EPS | $4.89, above market expectations |
| Azure revenue and growth | $33.17B, +48% YoY, above the 44% expectation (43% in the prior quarter) |
| Capital expenditure | $45.2B, +30% YoY, below the prior forecast of $50.67B |
| Full-year capex outlook | The company previously expected capex to reach $175B this year |
| Free cash flow | $18.63B, -27% YoY, still positive |
| Capex mix | About 75% tied to short-lived assets such as Intel chips and NVIDIA GPUs (about 66% in the prior three quarters) |
| After-hours share price | Jumped nearly 3% following the report |
Background and Impact
- Azure disclosure change: Per CLS and Communications World, Microsoft disclosed Azure revenue in dollar terms for the first time this quarter; Azure became the company's largest single business, with growth accelerating from 43% in the prior quarter to 48%.
- Capex pace: Per CLS and Communications World, quarterly capex was $45.2B, up 30% year over year, but below the analysts' prior forecast of $50.67B; the company previously expected full-year capex of $175B.
- Sector contrast: Per 21st Century Business Herald, Microsoft shares jumped nearly 3% after hours, in contrast to Google's sharp after-hours decline the same day.