Microsoft revenue rises 19% to $92.3B as Azure grows 48% to $33.2B
Microsoft's fiscal first quarter, reported Oct. 28, 2026, beat estimates. Azure revenue was disclosed in dollars for the first time, while free cash flow fell 27%.
TL;DR
- Microsoft reported revenue of $92.3 billion, up 19%, for the quarter ended Sept. 30, 2026, in results released Oct. 28, 2026.
- Azure revenue grew 48%; CNBC reports Microsoft disclosed it in dollars for the first time at $33.17 billion.
- Commercial remaining performance obligation rose 73% to $677 billion, and Microsoft Cloud revenue was $63.9 billion, up 30%.
- CNBC reports capital expenditures including finance leases of $45.2 billion and free cash flow down 27% to $18.63 billion.
Microsoft's AI cloud kept growing faster than its peers' cash flow. For the quarter ended Sept. 30, 2026, Microsoft reported revenue of $92.3 billion, up 19%, and operating income of $45.9 billion, up 21%, according to its Oct. 28, 2026 release.
Azure in dollars
Azure revenue increased 48%, the company said. CNBC reports Microsoft disclosed Azure revenue in dollars for the first time, at $33.17 billion, against a StreetAccount estimate of $32.32 billion. Microsoft Cloud revenue was $63.9 billion, up 30%.
Commercial remaining performance obligation, contracted revenue not yet recognized, rose 73% to $677 billion. "We still have demand that exceeds supply," CFO Amy Hood said on the call, according to CNBC.
CNBC reports Hood expects Azure growth of 49% to 50% at constant currency in the fiscal second quarter, and revenue guidance of $96 billion to $97.1 billion.
Spending and cash
Capital expenditures including finance leases were $45.2 billion, up about 30% from a year earlier, CNBC reports. Free cash flow declined 27% to $18.63 billion. Hood said Microsoft will continue to generate free cash flow through fiscal 2027, according to CNBC.
Under its new segments, Agents and Infra revenue was $76.8 billion, up 25%, while Devices and Consumer fell 3% to $15.5 billion, with Windows OEM and Devices revenue down 22%. Microsoft returned $10.2 billion to shareholders through dividends and buybacks. CNBC reports shares rose 4% in extended trading on Oct. 28, 2026.
What it means for Web3 teams – Analysis
Microsoft says demand for cloud capacity still exceeds supply. For teams building AI agents or on-chain infrastructure on hyperscaler clouds, capacity and pricing remain worth watching. This is not investment advice.
FAQ
How much revenue did Microsoft report for the quarter ended Sept. 30, 2026?
$92.3 billion, up 19% year over year.
How fast did Azure grow?
48%. CNBC reports Azure revenue was $33.17 billion, the first time Microsoft disclosed it in dollars.
What is Microsoft's commercial remaining performance obligation?
$677 billion, up 73%, according to Microsoft.
What happened to Microsoft's free cash flow?
CNBC reports it declined 27% to $18.63 billion in the quarter.
Sources
News summary based on the sources above. Not investment, legal or tax advice. Editorial policy & corrections · Report an error
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